The yo-yo relationship with the market
I was born in 1968, as I look back from now, I have already passed my half way mark. Time seems to passed by slowly in the past and I dreaded the passing of every day. Now I am dreading that it is passing too fast.
As far as I could recall, the first yo-yo that I saw was a promotional item from Coca Cola. I am not sure now but I think it was some time in 1973. It only appeared a short while and disappeared from the world quick. The toy again emerged in 1985 and became a hit. Every children would want one. Its design also varies with many fancy colours. However the basic function remains the same. A string attached to 2 circular disc joint together. This time it lasted for another year. Yo-yo appeared again during 1997-1998 as far as I could recall. This time there was a competition and this guy who won went on a round the world tour and again yo-yo became a hit. However, this time round its lifespan seems to be shorter, only a few months.
It is a fun toy, going up and down and you can do fancy tricks. Yet I can't help but to notice that its appearance has coincide with market down turn. It became a hit to the children and teenagers shortly before or after there was a market crash or stock market collapse. In 1973, there was an oil crisis. 1985-1987, market slow down. 1997 the financial crisis. Is yo-yo a cursed toy to the financial market and the way it is played is trying to tell people of the ups and downs of the market? What ever goes up must come down.
While I ponder about this question, I notice that children are starting to play the yo-yo again. It is making a come back to the new generation. Will it also bring about another market down turn? As I read the STI yesterday, I am quite firm that it is heading for 2,245 area. I just wonder, will the curse of yo-yo have a hand in this? Of course it could also be superstition.
3 Comments:
Although STI looks bearish, but DOW 30 and S&P 500 seems not ready for down, refer weekly charts of them. Thus, expect STI to stay at current level up and down for some time before dropping sets in.
BTW, 1987 saw market crashes all over the world, rather than a market slow down only. Refer monthly charts of them. Very steep, fast, but recovery also fast.
I did notice that Dow 30 and SP500 are close to completion of a rising wedge, very scary! But on the other hand, Fed will stop increase of inetest. Thus market will not have sudden big fall or up for the time being.
Interesting, I will have to take a look at Dow tonight.
Post a Comment
<< Home