2007/2013: You Will Never Look At The Markets The Same Way Again - Seeking Alpha

2007/2013: You Will Never Look At The Markets The Same Way Again - Seeking Alpha

Here is another outstanding article by Chris Ciovacco.  He talks about how the Fed's QE matters a lot in the stock market continuing to rise.  Secondly, he emphasizes that the charts reflect what the fundamentals of stocks really are even if we think differently.  He compares 2007 to 2013 to show that we are nowhere near a bear market.  The 50-day and 200-day lines are given to illustrate the value of accepting charts for knowing the direction of stocks.  The 2008-2009 bear market started from a curved stock market top in 2007.  It did not just suddenly drop 50%, and it will not do that today either as long as the economy is above water and the millions of investors are maintaining the charts with a positive slope.  Thirdly, Chris also shows how to evaluate individual stocks like KO compared to its own chart and the S&P 500.  If both charts are pointing down, you should stay away from the stock.