This is just like spring of 96. Market down, good new bad new scenerio. March 8 96, China test fires ballistic missiles two weeks before Taiwans first elections, emplyment data comes out, 700,000 new jobs, bonds are down limit at the market open, big selloff that friday, I think 2 circuit breakers hit. Look at the historical chart and you would never know it happened if you were not trading then. I posted before this is a lot like that time period. Rapid attnetion paid to news and development of "sunspots" as market has been locked in equilibrium.
The dow on average has returned around 7.5%-8% over the last 100 years. However if were in a "bull" market than its time for that much needed 10% correction.
Too Funny! I remember that day well. I was long puts. It was a Friday and I had an late morning flight to Florida for the weekend. When I got to O'Hare and saw how hard the market had broken (I think around 4%) I was ecstatic. I thought it was Oct/87 redux. Two weeks later those puts were worthless......
We may have crossed paths Pabst. I was getting off a plane at Ohare just in time to hear the bond news. Made it to the floor of the merc an hour and a half later. Was supposed to be meeting with Refco and hooking up with a couple of buddies, who were locals, for a trading gig. Needless to say the meeting with Refco was shitcanned but I had a front row seat for the carnage. Same thing happened as this week, guys who never saw volatility were blown out, saw them crying on the escalator on the way out. Good lesson to learn at an early age.