What's the big deal today....Media overblowing everything yet again. We are nowhere near retesting the triple bottom at 8000 yet.
8000 was tested this morning in the pre-market session when you could have bought the DIA for 80.12. It stayed above 80.
Anyone who doesn't think the PPT team is at work today is out of their mind IMO. Why would anyone with 1/2 a brain be buying BILLIONS of dollars worth of stock RIGHT at the open with futures down 550 and Asia having crashed?!!! They wouldn't. They'd wait to see how bad things got and then start EASING in. This is gvm't intervention plain and simple. Skeptical? Consider this, the President's Working Group was created after the crash of 1987 to prevent future crashes. "Circuit breakers" were enacted by the NYSE as well. Also, we could be creating a LOT of technical support around 8,200 on the Dow if we remain above it. Still skeptical? Consider this. The first 'intervention' started on 10/24/29 (today's anniversary btw). Here is the story: http://www.buyandhold.com/bh/en/education/history/2002/r_whitney.html http://en.wikipedia.org/wiki/Plunge_Protection_Team The government and banks know that intervention WORKS. It does prevent panic selling. If they're willing to rewrite the entire BOOK on Fed Res. lending, borrowing and trillions in bailouts, you don't think they'd buy a few billion of stock at the open to create a technical bounce?
Rule number 1 in stock markets: practically everyone thinks differently from you. Some (delusional) people may think the market is way oversold the "fundamentals" are strong and just another bull market is around the corner. In that case buying anytime is justified.
Still no good reason for the selling. From Yahoo Finance à ööööööö Stocks Dive on Belief Global Recession Is at Hand- AP Wall Street joined world stock markets in a sharp selloff Friday, with the Dow Jones industrials dropping more than 300 points and all the major indexes falling more than 3 percent. The growing belief that the world will suffer a punishing economic recession has investors dumping stocks. The pullback in the U.S. wasn't as steep as some on Wall Street had feared given the massive declines seen overseas after another round of grim corporate news stirred fears about the world's economy and after a decline in index futures before the market opened was so steep that selling halts were imposed.' ööööö ´ Boo hoo hoo this isn´t anything new. Technically a recession is defined as a fall GDP, which has yet to happen and won´t. The Us and global economy is still fundamentally strong and the dow should see 14,000 within 15 months.
Ishop- Good point. I don't disagree. But BIG money would NEVER have bought RIGHT at the open like that. You never buy now when you can almost certainly get a better price an hour from now. I'm looking at the WAY things were bought.
On another positive note the volume it weak today, as it has been all week. The huge volume on october 10th seems to give further ecidence that October 10th was indeed the bottom. I still can´t beleive the dow is so low.