Learn to Love the W-Bottom

And so it begins. We finally get the first "V" of the rally and I am asked why must we have a "W," why can't it be a "V"? Human nature simply never changes. When the market is going down you think it will never rally again. When it's going up you think it will never come down again.

Sure this might turn into a V but I addressed the V bottom yesterday by noting how 2014 turned out. Or we can take a look at -- oh I don't know the September 2001 rally, since that was one I was asked about. Isn't this similar to the 2014 rally we looked at yesterday? A big low, a big rally and then months of going nowhere. And just to keep the record straight, when this one came down in the spring of 2002 it didn't retest, it collapsed. In that respect I would say somewhat similar to the October 2014 low and the August 2015 collapse. Only in 2002 it was a full fledged bear market....280 more words left in this article. To read them, just click below and try Real Money FREE for 14 days.

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