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Dow Jones Industrial Average History
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The
Indicant gained a bit on buy and hold at bear signal #02 on Apr 11,
1958. This is because it was able to avoid the stock market bear that
correlated with the 1957 recession. The 1900 $10,000 investment in the
stock market was at $1,193,643. The buy and holder was at $66,143 for
their 1900-investment.
The Indicant lost a bit with a nervous stock
market bear in the normally bullish presidential election year of 1960.
By bear signal #06
on Apr 22, 1960, the Indicant's balance was at $1,569,990,
but down
slightly from bear signal #04 on Mar 4, 1960 at $1,599,998.
As you are seeing, the Mid-term Indicant is
not always successful with each trading signal, as some bearish and
bullish spurts are very short and the attributes lag a bit. However, all
major stock market bulls and stock market bears are configured exactly the
same as a short-term spurt during their early stages. The Mid-term
Indicant identifies all bull/bear cycles and fulfills its purpose of
avoiding the financial and psychological destruction that major bear
cycles foment.
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President Eisenhower enjoyed two strong stock
market bulls on a year to year basis, with a classical stock market bear
in the post election year of 1957.
As you can see, the market was a little slow
in anticipating the 1957 recession, but make up for it quickly with a
sharp drop of 20%+.
The presidential election year of 1960 was
uncharacteristically bearish. It was induced by the 1960 recession and
somewhat by a lame duck presidency. The first televised presidential
debates occurred in 1960. John F. Kennedy looked better than his opponent,
Richard Nixon. The recession, most likely occurred, as Kennedy's poll
numbers improved with each debate despite his ignorance. This is the first
time when physical appearance overruled the candidate's substance.
The stock market did not object to the first
nuclear power plant and the first silicon chip. Analogizing with the steel
worker's strike in the normally bullish presidential pre-election year,
the stock market did not like concepts of communism - a collection of
people who are assumed equal in every way - one of those tyranny by the
majority sort of things. The market has no respect for people who force
change through destructive practices, like the steel workers union. Hey,
if you don't like your employer, go start you own company, like the great
Walter P. Chrysler did when he left General Motors. Coercion by the masses
is a straight lane to extinction. The market peaked with the steelworkers
strike.
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