Chad Brand

Dow: Longest Winning Streak in 80 Years

Geoff,

I totally agree that the streak itself is not important. The only reason we even know that it was 24/27 up days is because the media reported it constantly. I think the key is trying not to get caught up in the euphoria and chasing it too far. How we got to be overbought (whether it was one day up 9% or 24 days up 9%) isn't important itself, but it is notable only because when streaks reach once in 80 year levels, it signals that the market is indeed overly extended to the upside. After all, if such a streak wasnt usually followed by sell-offs, then streaks like this would happen far more frequently. Hence, it isn't surprising that the Dow is down 125 today, for instance.