Bear Market Rally as per Investopedia

Intrinsic · 1 Bear Market Rally as per Investopedia Wed Jun 29, 2011 9:30 pm

Intrinsic

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Bear Market Rally

What Does It Mean?

A period in which prices of stocks increase during a bear market. A bear market rally is usually a short-lived market increase following a period of market decline and is followed by another period of market decline leading to a pronounced down trend.

Although there are no official guidelines for a bear market rally, it is sometimes defined as an overall market increase of 10-20% during an overall bear market. There are many examples of bear market rallies in modern stock market history, including the bear market rally of the Dow Jones following the stock market crash of 1929, which eventually saw a bottoming out in 1932.

ShareShares · 2 Re: Bear Market Rally as per Investopedia Wed Jun 29, 2011 9:33 pm

ShareShares

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So we can see a bottom again in 2014?

invest-abc · 3 Re: Bear Market Rally as per Investopedia Wed Jun 29, 2011 10:36 pm

invest-abc

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Intrinsic wrote:Bear Market Rally

What Does It Mean?

A period in which prices of stocks increase during a bear market. A bear market rally is usually a short-lived market increase following a period of market decline and is followed by another period of market decline leading to a pronounced down trend.

Although there are no official guidelines for a bear market rally, it is sometimes defined as an overall market increase of 10-20% during an overall bear market. There are many examples of bear market rallies in modern stock market history, including the bear market rally of the Dow Jones following the stock market crash of 1929, which eventually saw a bottoming out in 1932.

Time to time we see shares which are continuously going down having these mini rallies. Few weeks back I have observed this with UBC as well. However, I think thin volumes may be a indicator of false rallies.

Rajitha · 4 Re: Bear Market Rally as per Investopedia Thu Jun 30, 2011 12:21 am

Rajitha

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Mark my words in 5 weeks time people would be saying what a great bull market we live in !!

Slstock · 5 Re: Bear Market Rally as per Investopedia Thu Jun 30, 2011 6:47 am

Slstock

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In Bear markets too selected stocks can increase ( due to fundamental or manipulative reasons). The operative word is Selective. In Bull markets also there will be shares going up ( selective) and some going down.

However due to overall oversold condition of stocks in an extreme bear market , there can be a temporary rally of majority of the stocks like in a bull market. That whats the article is saying I guess.

But it leads to another issue. In either bull or bear we need to identify and have the majority of shares that will likely go up in our portfolio. What if we hold the wrong ones?

ASI vs CSE: Have we seen ASI increases in both Bull or Bear markets sometimes by large amounts but our portfolio is still red.
The question is how do we prepare for a these so called rallies as ASI increases itself but will not make our portfolio increase.

Bottom line is : To improve our chances and benefit from majority rallies, we need to have selected stocks which are more likely to hike and not oversold ones at unsustainable prices.

The times are gone when like in the 2009/2010 when any blind stock will make gains in these so called rallies.