November 30th, 2011
by John Lounsbury
In this case we mean explosive is the very best sense, like a rocket shot for a space traveler. October was one of the best months for stocks in years. A few of the thirty markets we follow at Econintersect continued to rally in early November but most peaked either October 27 or 28. With markets selling off significantly since those highs it is a good time to take an overview of just how big the rally was. Tomorrow we plan to review just how much the selloff was that hit at least a temporary lull (or possibly a bottom) last week. The data table is presented after the continuation break.
Although not as many markets hit official primary bull market status, the results are pretty impressive, with 24 of the 30 markets making their move in less than a seven week period. Twelve markets hit above the magic 20% gain marker and two more would hit 20% if rounded to the nearest digit. Fourteen more markets had gains that exceeded 10%, but failed to reach the 20% marker.
The gains do not match either the breadth or the magnitude of the preceding decline which saw 25 of the thirty markets hit primary bear status (losses over 20%) and the remaining five all recording losses between 13% and 19%. The preceding bear market, which bottomed for many of the indexes in late September and early October, was also much longer in duration, with 19 of the 30 indexes declining for more than six months.
Tomorrow we will review just how the November pullback has affected the thirty indexes.