Given we started a power trend on 5/8/2020, the topic has been a common theme of @mwebster1971‘s Weekend Stock Market Update.

In a previous post, What is a Power Trend and How to Spot it on a Chart, I outlined the specifics needed to start a power trend. I also included examples of two power trends, one in 2016 and one in 2018.

In this post I’ll show two more classic power trends. I’ll also include a chart of the current power trend.

Thanks to Mike Webster for pointing out all of these power trends. If you haven’t been reading his weekly market update, I highly recommend you make it part of your weekend routine. Here’s the most recent post: Stock Market Update: The Bull Rages To Higher Ground.

Nicolas Darvas – How I Made $2,000,000 in the Stock Market

The power trend shown above occurred when Nicolas Darvas, author of How I Made $2,000,000 in the Stock Market, was trading stocks.

This power trend began on 5/9/1958 and run through 9/2/1959. That’s an impressive span of one year and three months!

During this run there were only 5 tests of the 50-day moving average, yet no decisive close (> 2%) below the 50-day.

Here’s a quote from Nicolas that fits exactly with the CAN SLIM approach to investing:

“I made up my mind to buy high and sell higher.”

Nicolas Darvas

One of the Longest Power Trends on Nasdaq

The power trend that follows was from 9/2/1982 through 7/29/1983. This was an impressive 47 week run with the first test of the 50-day occurring on week 45.

Current Power Trend

To put all of this into perspective, the current power trend on the Nasdaq is shown below.