mercoledì 1 gennaio 2014

$TSX Pops Champagne To Close Out The Year

Yahoo! What a 4th quarter touchdown!

Let’s start with the 25 year view.

From the sideways markets of the late 80′s, the first three years of the 90′s.

The 1980′s (not shown) had the $TSX stall at resistance at the 3000 level in 1980,1981. It spent the next 12 years moving above it and pulling back to the 3000 level. It finally got lift off in early 1993 that broke a multi year trend line. The next 5 years had the $TSX move from 3500 at the breakout in 1993, to 7835 in the spring of 1998. Then a tough year ensued which saw the $TSX lose 32% before yearend. The next rally was one to behold. 5325 to 11402 in 18 months. Better than 100% if you sold your Nortel on the right date. The Nortel stock made up more than 30% of the $TSX at the time, and quickly plummeted into bankruptcy. The pullback reversed 90% of the gains off the lows of 1998. After a multi year decline, the $TSX got back on its horse in 2003 and rode above the 15 month moving average. I picked the 15 month which is roughly the 65 week moving average loved by Martin Pring. However, I picked it because it is a best fit line for support of the major uptrends. Maybe that is why Martin likes it too!

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