In slow downs, things called Contra Rallies occur … we have mentioned this before, here, here and here and as the reminder chart below shows, they can be very large …
We are optimistic at heart but also realists when it comes to economic data, and the weird Contra Rally. And OH… the rallies can be big as the chart above, again from prior post exhibits.
We will call your attention to Contra Rallies relative the “sharp pullback” during growth times when that chapter finally arrives…not to worry it will… Last Friday fits the bill!
How can you tell? Only about 75% of the normal trading volume over the last month along with unusually large movement!
Correction Defined – A 10% Drawdown!
This is a repeat reminder post !!
Have a Great “Contra Rally Reminder” Day!
John A. Kvale CFA, CFP
AI Content Authenticity: AI created the splash picture. All of the following text content has been completed by myself and has not been edited or created by AI. Occasionally we do use AI for images and will note when appropriate.
Founder of J.K. Financial, Inc.
A Dallas Texas based fee only
Financial Planning Total Wealth
Management firm.
