Maybe will get a repeat of this on monday...... Dow up 936 in historic rally Richard Drew, Associated Press Specialist Glenn Carell watches the numbers as he works on the floor of the New York Stock Exchange, Monday Oct. 13, 2008. Wall Street snapped back from last week's devastating losses after major governments announced further steps to support the global banking system, including plans by the U.S. Treasury to buy stocks of some banks. Global efforts to shore up banks spurred the Dow's biggest one-day point gain in history. By MICHAEL M. GRYNBAUM, New York Times Last update: October 13, 2008 - 11:12 PM On Monday, for the first time this October, the Dow Jones industrial average ended the day higher than it began: 936 points higher, to be exact, making for the biggest single-day percentage gain in 75 years. The surge came as governments and central banks around the world mounted an aggressive, coordinated campaign to unlock the global flow of credit, an effort that investors said they had been waiting for. Some experts greeted the rally as a turning point in the slow-motion crash that has erased five years' worth of value from the stock market in the past few weeks. When Monday began, shares of some blue-chip companies were at their cheapest levels in years. "The market clearly was getting priced for an Armageddon, a depression, for the end of Western civilization as we know it," said Edward Yardeni, an investment strategist. "A lot of people realized these were extraordinarily good prices to buy stocks." But others warned that the problems at the center of the current crisis, including a global credit squeeze and deepening economic problems, were far from solved, and could set the stage for more volatility in markets. Reeling from the worst week in stocks since 1933, officials announced over the weekend that they would flood the financial system with billions of dollars in liquidity and provide capital for troubled banks, throwing out the traditional financial playbook in favor of a series of moves that officials hoped would get banks lending again. Relief poured through the markets. The 11.6 percent gain in the broad Standard & Poor's 500-stock index was that gauge's best single-day gain since 1939. Stocks in Paris and Frankfurt had their best single-day gains ever, rising more than 11 percent. The Dow Jones industrial average, which closed at 9,387.61, up 11.1 percent, is now back to its levels on Thursday. Only four times in its history has the Dow risen more percentage points in a day. Those gains came in 1929, 1931, 1932, and 1933.
Cramer went on his show that night and declared the start of the of a new bull market w/the Dow back at 14K by summer 09.
For some reason everyone always falls for the new bull market scenerio after the markets jump 30, 40 and even 60%, by the time everyone is in the bull market is over. Reminds me of 2007 when everyone was chasing performance. Anyone expecting new highs on the indexes over the next 2, 3, or even 7 years out is going to be in for a real surprise.
why do people this cramer is a total idiot. I thought his hedge fund returned 20 something % when we ran it