Add a Zero to the Dow in 1976 and Look at the Chop!!

Discussion in 'Trading' started by Pabst, Nov 2, 2003.

  1. Pabst


  2. Not only the chop but the miniature daily and yearly ranges!
    A sign of what's in store down the road?
  3. Digs


    Me thinks that involvement in financial markets has changed forever due to the internet.


    The USA markets are a huge attraction for foreign daytraders, as they want liquidity, no other STOCK markets in the world have liquidity like USA stocks (not counting forex). Sure levels may drop, but not to levels seen before as trading access to more population has changed for the better, more traders more liquidity.

    Well maybe, it sound good anyway !
  4. lindq


    I think you're right. It wasn't that many years ago when any trade meant a call to your broker and a commission in the hundreds (!) of dollars for a single trip. Investment, trading and stock ownership are all far higher now because of easy access. So historical comparisons of market action pre-1990 are probably not very valid.
  5. Tea


    The economy was different back then. Inflation, malaise. Thats when angry punk rock got started.

    In the early 90's you had chop and the same kind of malaise - thats when angry rap music got started.

    I don't hear any angry music this time. Maybe Hillary Duff's Disney music album can be considered angry in a petulant, but cute teen way (but thats a stretch). :D

    Bottom line - I don't think we are at the malaise point yet and long term market chop. We are going through long term resistance. Once we get through it things will start to swing again. IMHO.
  6. Pabst


    I hope you're kidding. I mean you must really have a short memory. The Naz just bottomed out of a 3 year bear that shaved 80% of the index. There is no correlation between liquidity and volatility. As "miraculous" as the internet is, it's no more of a breakthrough in terms of offering accessibility to investors than the telegraph or telephone were.
  7. Brandonf

    Brandonf ET Sponsor

    Its different this time, its different this time. It is, it is. It really really is :)

    We have telegraph machines and dont have to rely on guys standing on the tops of hills between New York and Philly anymore. Everyone can access our markets, we will never go down.

    :D :D