Recently I watched the Movie 13 days which centers around the circumstances that occurred during the Cuban missile crisis of 1962.  While watching the Chaos unfold on Screen I wondered what it would have been like to live through that period. Ofcourse being a trader It didn’t take too long for me to become curious how the markets behaved during these hostile times as well.  In looking back at the daily chart of the Dow Jones during October 1962 there was a clear ABCD buy pattern that completed right at the climax of the Cuban missile crisis. This buy pattern, that completed just as people were hoarding food for their bomb shelters, was the beginning of a 3 year bull rally in the Stock market.  Traders that take the time to look back through market history will find that this is not an isolated event. Even during the most uncertain of political times the Markets continue to form repetitive patterns.

Kevin Riordan

This entry was posted on Monday, September 6th, 2010 at 12:31 pm and is filed under General. You can follow any responses to this entry through the RSS 2.0 feed. You can skip to the end and leave a response. Pinging is currently not allowed.