I was asleep last year and didn't pay attention to the markets so please help me out with this question. How long did it lasted and was the swings similiar to the current one? The current one is about three weeks old - with one major drop and three/four consecutive days of down. Then it was approximately 3-4 days of sideward swings and then one big drop to end up being positive for the day. Today, we had a huge up day which could be interpreted as a continuation of the bull run since all the major companies gained huge.. eg. the financials - C, MS, GS, etc.. the casionos .. WYNN, LVS, etc.. I'm just wondering based on history if this concludes the correction. thanks
corrections last 6 weeks to 3 months. this correction lasted 10 days max. we'll see what the future brings. every dip was bought like no tommorrow as fear was absent. i expect another huge move down to kill the smart buts who bought this
A correction is around 10%, a bear market is anything between 15-20%. Most emerging markets last June went into a bear market falling more than 25%, since then they have rallied back erasing all losses and gaining around 25-40% on some major averages.
I'm expecting for at least one more huge drop and then commence the bargain hunting. I bought options on C, WYNN, DIVX etc.. only to sell for a loss or minimal profits - if I only had held out until today.. damn
Last year was MUCH different. It was a confluence of events with the final one being the cnbc media whore, Bartiroma, and Bernanke getting loose over cocktails and bringing into question ongoing liquidity. There was a massive runnup in commodities at the time with post Katrina aftershock and demand side unbalances. This was a two hit wonder, China and subprime. Neither has threated liquidity. One point to make is the run up, even today has been on very light volume, there has been no capitulation. The market is at continual equilibrium. It has been very orderly. When there is a real threat to liquidity drying up we will be down 7-12% within a month and a half with continued daily volatility. Then I will be buying like whore on a Sunday morning.
This was the straw that broke the backside last correction, toward the bottom. Remember it well. Was sitting in a hotel room in Washington DC trying to log on and sell, lost $10,000 that day on the playdough. http://insidecable.blogsome.com/2006/05/24/
I just don't buy this rally yet. HAL warned, MOT warned, and the housing markets are going to the gutter. Who's playing with the markets - are the hedge funds that damn powerful...