Hold your breath. It’s that time of the year … the time of the year when the market either makes it or breaks it. It’s Crash or Rally time.

We are all familiar with all the bad news that comes with this period of trading. Here’s a brief recap:

* 1929, Oct 24 (Black Thursday) The Great Depression
* 1929, Oct 29 (Black Tuesday) The Great Depression
* 1987, Oct 19 ((Black Monday)
* 1997, Oct 22 (Asian Financial Crisis) DOW lost more than 11% in 4 consecutive down days.
* 2007, Oct 10 - Start of the Sub-prime Mortgage Crisis Decline
* 2008, Oct 06 to 10 (Black Week) The “Panic of 2008″. DOW closes below 10,000 on Oct 6 for the first time since Oct 26, 2004
* 2008, Oct 09 & 15 2008 - DOW loses more than 7% on each day.
* 2008, Oct 24 (Black Friday) World markets lose more than 10% in one session

Now, also take note that when the market was at a bottom or recovering from a bottom, Octobers were great rally starters;

* 1921, October - After a three year low in August that year, DOW went on to gain 446% over the next 8 years that led into the Crash of ‘29.
* 1934, October - Having recovered from the Great Depression, the market gained 110% over the next 28 months.
* 1949, October - After finding a 4 year low in June, the market broke its 52 week high and started a 16 year bull run that took the DOW from 190 to 988 by Jan 1966.
* 1982, October - Dow breaks above 1,000 and gets above its 10 year high and starts a 5 year rally that extends beyond 150% before breaking down in October 1987.
* 1987, October - After that spectacular break down, Dow started an immediate recovery that went from 1,840 to 3,000 (63%) in 33 months and peaked out at 3,000 by July 1990.
* 1990 October - Dow pulled back from 3,000 in July 1990 to 2,365 by October that same year and found a bottom which rallied to 9,340 (294%) in 8 years, ending with the Russian Financial Crisis in 1998.
* 1998, October - The Russian Financial Crisis ended with a Double Bottom and rallied the DOW from 7,631 to 11,107 by May 1999 for a gain of 45.5% in only 7 months.
* 2002, October 10 - DOW found the Dot.com recession bottom at 7,286 and went into a 16 month recovery that topped out in February 11, 2004 at 10,737 for a 47% gain (albeit with a scare between January and March of 2003).
* 2005, October - Dow holds above 10,200 in a two year consolidation and breaks out the following November and makes a two year run to the all time high of 14,164 by October 9, 2007 for a 38.8% gain.

So 2009..What will happen??? look around, everybody keep talking about stock rally, how much profit they have made. Is time to be fearful as what Warrent Buffet said huh.

A wise quotation by Joseph Patrick Kennedy from 1929:

Even when shoe shine boys are giving you stock tips, it’s time to sell.