Many experienced traders and investors know that it is extremely important to follow some of the major stock market anniversary dates from the past. Just as people follow a birthday, a wedding anniversary, a holiday, a death, or even a divorce the stock market can often be very similar. You see, people trade stocks and these dates from old will often repeat or reoccur from time to time.
It seems the subconscious mind senses when these dates will come into play in the future. This is called vibration. For example, if I forgot my wedding anniversary my wife would likely be very upset and not very happy with me. She would probably pout or even become very angry with me. In other words, I would definitely be worse off if I forget this important date. Remember the old saying, happy wife, happy life. So I make it a point to not forget this important date in my life.
Well, the stock market works in a very similar fashion. For example, if the stock market is in a daily chart downtrend and there is an important anniversary date coming up the market could react very similar to the way it did in the past. Recently, on October 19, 2012 there was a 25-year anniversary date from the 1987 stock market crash. Now during the October 19, 1987 crash, the Dow Jones Industrial Average (DJIA) traded lower by 508.0 points making the decline one of the largest single day percentage declines ever. In other words, real panic had reached Wall Street. Well, on October 19, 2012 the stock market sold off with the Dow Jones Industrial Average (DJIA) finishing lower by 202.33 points on the trading session. While the stock market did not exactly repeat what it did in the past it still had a very similar reaction by selling off sharply lower on the trading day.
In 2007 and in 2008 there were many anniversary dates that came into play during those years. As we all know, 2007 marked a pivot top for the stock market and many of those anniversary dates were very bearish at that time. For example, look at the trading action that took place on October 19, 2007. The stock market plunged lower on that day with the DJIA losing 366.0 points on the trading session. In this example, you can see how a very similar result occurred on the anniversary of the October 19, 1987 trading day. There are many more dates in trading history that I can easily point to, however, I will leave that investigative work up to you.
Many of you are probably asking why this occurs, others are probably saying that this is just coincidence. In any case, it is always good to know some of the pivot anniversary dates from the past. Remember what the American author and humorist Mark Twain used to say, history does not exactly repeat itself, but it often rhymes. In these examples that I have showed you from October 19, 2007, and 2012 you can see how history rhymes. Sure, there is certainly more to just finding an anniversary date, it is called the time factor, however, I shall leave that for a future article.