Goto the following address:

http://www.creditwritedowns.com/2008/06/chart-of-day-dow-1928-1932.html

Look at the first chart on this page. This is a chart of the Dow Jones Industrial Average Crashing from 1928 until 1932. This can be considered the classic bear market chart. Look at how it happened. A big crash a recovery and then a slow decline over the next two years, bleeding the market to death. Look at what you've got there. A lot of big drops, but also a lot of rallies. The trend always down, down, down.

The reason why a chart like this is important is because human psychology plays such a significant role in financial markets. When you have a huge crash like we did in 1929 or 2008, everything gets sold off. People panic. Gold, silver, wives, children...People will sell anything to raise cash. But a more measured slow crash still wipes out all the wealth of DJIA stockholders, but it doesn't induce the panic that a fast crash does. This is why, in my view, Homestake Mining crashed with everything else in 1929, but then started to climb as the DJIA started its more protracted downward slide. People had more time to think. Still time to be concerned, but not to panic.

I believe we are witnessing the same type of phenomenon here, and that this time it will unfold in a similar fashion. The lines we see on the charts are nothing more than objectifications of human behavior, of human nature; and human nature just does not change that much over a fifity year time period. Most people, the great majority of humanity if put into a similar situation will act similarly over and over and over again.

Look at this chart. Down, then up a little bit, then a little bit of sideways motion, then down, then up a little bit. This is a non-panicky chart. The trend is easy to see. This is the tide. Waves are present, sometimes going storngly counter to the tide, but the tide moves on. Bull