Q2 STOCKS TO BUY

Dow, Nasdaq Haven't Done This Since the 2009 Bottom

Both indexes racked up huge gains during their six-week win streaks

Feb 4, 2019 at 1:01 PM
facebook X logo linkedin


After a rough fourth quarter of 2018, the stock market has been in rebound mode in 2019. In fact, the Dow Jones Industrial Average (DJI) and Nasdaq Composite (IXIC) just notched their sixth straight weekly wins -- a feat not accomplished for either index since late 2017. What's more, the strength the Dow and Nasdaq have shown during this most recent win streak is something Wall Street hasn't seen since right around the March 2009 bottom.

Specifically, the DJI gained 11.67% during this year's six-week rally -- the biggest gain during such a streak since it surged 22.7% in the six weeks ended April 17, 2009. Likewise, the Nasdaq shot 14.7% higher during the latest weekly win streak -- the biggest since that same stretch after the March 2009 bottom, when it rallied 29.31%, per data from Schaeffer's Senior Quantitative Analyst Rocky White.

Dow after 6-week win streaks

Nasdaq after 6-week win streaks

Historically, six-week winning streaks have preceded even more strength for both indexes. The Dow has enjoyed 82 of these streaks since 1900, after which the blue-chip barometer extended its run to a seventh week 57.3% of the time, averaging another one-week gain of 0.32%. That's compared to an average anytime one-week gain of 0.13%, with a win rate of 56.7%.

In fact, the DJI tends to outperform at all checkpoints, looking three months out. A month after six-week win streaks, the index was up 1.2%, on average -- more than twice its average anytime return -- with a stronger-than-usual win rate of 69.5%. Three months later, the DJI was up 2.89%, on average, and higher 68.3% of the time -- much better than usual.

dow after streaks vs anytime

It's a similar story for the Nasdaq. There have been 48 six-week win streaks since 1971, and the IXIC went on to enjoy a seventh straight weekly gain 68.8% of the time, averaging a one-week return of 0.54%. That's compared to an average anytime one-week gain of just 0.21%, with a positive rate of 56.8%.

Two weeks out, the Nasdaq was up 1.51%, on average -- more than three times its average anytime two-week return of just 0.42% -- and was higher a whopping 75% of the time. Three months later, the IXIC averaged a stronger-than-usual gain of 3.3%, and was higher two-thirds of the time.

nasdaq after streaks vs anytime

 
 

“Buy This Stock Now!” - Expert Who Called 11x On TSLA

He called a rare 11x on Tesla…

But now, thanks to Elon & Trump’s new alliance…

He says there’s a new opportunity that could be 1,000x BIGGER than Tesla – and it could completely revolutionize a $23 Trillion market.

It’s trading for less than $5 per share right now…

But it won’t be under the radar for long.

Discover The 1,000x Bigger Elon Opportunity Here

GRAND SLAM COUNTDOWN

 
 

Featured Articles from Trusted Partners:

👀Learn How Dividends Create Passive Income for Life
Receive $200 Off Motley Fool Epic. The Motley Fool Epic $299 discounted offer is based on $499/year list price. Introductory promotion for new members only. Take control of your money and your portfolio with Motley Fool Epic.

💵New Income System Could Pay You $4,243 Monthly
You could collect an average of $4,243 per month starting as early as next week with a new payout system for income investors. New registrations are being accepted for investors who want to be in a position to start with their first payout next week.

🚀Easy 92% Crypto Dividends (No Coins Required)
COIN stock doesn't pay a dividend... But there's actually a new way to collect a massive dividend that's indirectly based on the stock and offers a terrific monthly income (currently yielding nearly 92% on a forward basis).

🤝Free Advisor Match with Wiseradvisor.com
Don't leave your retirement to chance! Get matched with a trusted financial expert for FREE and make the most of your tax refund. Get started now.

⚠️Dennis Quaid's #1 Warning for Americans
Here's the thing: life doesn't come with guarantees. The economy shifts, markets stumble, and years of hard work could slip through your fingers like sand. But it doesn't have to be that way for you. So request a free copy of this Gold & Silver Guide that will arrive right to your doorstep when you act now.

 

 
 

Follow us on X, Follow us on Twitter