Yesterday marked the end of the tech-heavy Nasdaq Composite Index’s monstrous nine-day winning streak. 

And many financial headlines today will be focused on this winning streak ending. But we think the focus should be on the fact that it even happened in the first place – because the historical implications are exceedingly bullish and imply that 2024 should be a very strong year for stocks.  

In short, nine-day winning streaks for the stock market are rare. And when they do happen – especially in the way this one did – they typically signal a big rally ahead. 

The Nasdaq has achieved 48 previous winning streaks of nine days or greater. And about 80% of the time, stocks are higher a year later, with an average return of 11%.

The Price Action Implies Bullishness to Come 

But this most recent run wasn’t just any old nine-day winning streak for the Nasdaq. It was essentially the market’s first “batch” of nine-day winning streaks in this market cycle, or since the last bear market (the Nasdaq also recorded a nine-day winning streak last month). 

When we narrow down those previous wins streaks to just the first major runs in a new market cycle, we find only 10 instances. 

In nine of those 10 “first” major win streaks – 90% of the time – stocks were higher a year later, with an average return of 17%. 

Additionally, 90% of the time, stocks were also higher two years later, with an average return of over 30%. 

The only exception here? The first major winning streak after 2020’s COVID crash, which came in late 2021 – right before the 2022 bear market. 

Obviously, that crash stands alone as an anomaly in market history. It was the first time the global economy shut down, and the market reactions were unprecedented. Of course, it comes as no surprise that the only exception to the trend of stocks rallying big after notching their first major winning streak in a cycle comes from this period. 

And aside from this anomaly, stocks always rally after posting their first nine-day winning streak in a cycle. 

The Final Word on the Nasdaq Winning Streak

That just happened for the Nasdaq. Not once, but twice in the last two months – first in November, then in December. 

We think the writing is on the wall. 

The price action we’re seeing in the market these days – particularly in tech stocks – is historically consistent with the start of a big, new bull market. 

That means stocks should soar in 2024 – and in 2025, too. 

Is your portfolio prepared for this major stock market boom?

Make sure you’re making the right moves right now to position your portfolio for success.