The end of the Nasdaq’s 12-day run may actually have been a beginning, Cramer said Monday, of a much bigger rally to come. Similar moves have prefaced historic tech bull markets, so we might be in store for another.
In 1992, the Naz registered 13 straight days of positive closes, while the index saw 11 in 1996. Though ’92 had seen about a 5% pullback after six months, the Nasdaq had shot up 14% a year later. Two years after the first multiday run that number had jumped to 28%. A matching trend played out in ’96. Six months after the near two-week run, the Nasdaq was up almost 4%. In a year’s time, the gains had reached 38%. By 1999, investors had added on 137%.
What’s the takeaway? Moves that had been measured in mere weeks were later measured in years.