A bear market is a study in declining momentum. The chart below of the Dow demonstrates this. Note that the Dow rallies to a peak. And this is followed by a second LOWER peak that loses upward momentum -- and thus the item is unable to advance above the first peak. This is the reason why I say that a bear market is a study in loss of upward momentum.
Listening to the commentators on Bloomberg, I note that almost all the talk is about comparisons of the current quarterly earnings of a stock to its earnings of the preceding quarter. Since many of the "estimates" of earnings are purposely presented as unrealistically low, the actual earnings when they are released are almost guaranteed to be better than the estimates. In this way, the commentators can keep busy, since they have little to say, and the whole market background can be ... Log in or subscribe to continue reading.
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