Stock market history from 1860 to 1869.

1860 was a very good year for the stock market, the market went from twelve points to a high at the beginning of the fourth quarter of around nineteen points before falling back to around fourteen points this was the beginning of civil war and as we know war brings money and money makes the stock market go up. Plus there are lots of technological innovations during wartime that can be sold during peacetime which again affects the stock market. The early 1860’s was a real boom time for the stock market, during the 1861 after the market retraced back to fourteen points and finished the year around seventeen points. 1862 was when the market really took off going from fourteen points in January to a high of 26 points. And it didn't stop there 1863 was a fantastic year for the stock market with the market moving without retracement steadily throughout the year to reach a high of 37 points therefore we had two successive years with a ten point gains each year all over twenty points in two years which may not seem a lot today that in those days was an increase of over 50% in the stock market which was a fantastic return in just two years. The average gain in the 1990’s was around 11%.

1864 saw the market retrace by around 50% from 37 points to 24 points by the end of the year. So the bull market lasted about two years followed by a retracement of 50% this is a pattern that would repeat many times over the next hundred years. It’s a no brainer. For the next three years 1865,1866 and 1867 the market went sideways between a support level of 30 points to a resistance level of 40 points. This is actually typical behavior after a big swing in price, you can see this on charts many times especially if you follow the 50 day moving average where the market price will have a big swing followed by a period of consolidation with many whipsaws around the 50 day moving average. The market was very bullish during 1867 and 1868 as it moved toward’s the resistance level of 40 points, it finally broke through the 40 point level during the first quarter of 1869 but by the second half of 1969 it had fallen back to 33 points but the decade had seen the best and worst times with a low of 9 points to a high above the 40 point level. One notable introduction that revolutionized the stock market was seen in 1867 when stock tickers were introduced these were one of the main ways that stock market prices could be sent all over the country in a day late fashion similar to our twenty minute delayed charting packages that we see today. Some things never change, just the technology. See you in the 1870’s soon.