Wednesday, January 03, 2007

Length of Dow Rally

Chart of the Day provided the following analysis of the length of past Dow advances. Although this advance is the fourth longest since 1900, it is below average in magnitude.

(click on chart for larger image)

As of December 22, 2006

    • The Dow Jones Industrial Average was not adjusted for inflation or dividends.
    • There are 252 trading days in a year (100 trading days equal about 4.8 calendar months).
    • A major stock market rally has been defined as a 30% or greater increase in the Dow (following a correction of 15% or more).

From a dividend valuation perspective, Investment Quality Trends shows where the Dow is trading relative to the Dow's historical high and low dividend yield.

(click on chart for larger image)

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