Floyd Norris notes that we have just had “two consecutive trading days when the Standard & Poor’s 500-stock index rose more than 6 percent each day — the first time that happened since 1933. They followed the first two consecutive 6 percent declines since 1933.”
Norris notes that after four days, the S.& P. is down 0.9%. “We may not be accomplishing much, but it sure is a lot of fun.”
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Source:
Wild Days
Floyd Norris
November 24, 2008, 5:17 PM
http://norris.blogs.nytimes.com/2008/11/24/wild-days/
Category: Markets, Psychology, Technical Analysis, Trading
Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.
For what it’s worth, the major US indices need to rise by the following percentages to get to the 50-day moving averages:
Dow: +11.1% (9,377)
S&P 500: +16.3% (991)
Nasdaq: +20.0% (1,766)
Russell: +26.3% (552)
And to get to the November 4 highs:
Dow: +14.0% (9,625)
S&P 500: +18.1% (1,006)
Nasdaq: +20.9% (1,780)
Russell: +24.9% (546)
It is guesswork, but should the bullish seasonal tendencies hold true on this occasion, these could be initial rally targets.
http://www.investmentpostcards.com
The 9 to 1 up and down volume thing has been getting trampled in the stampede as well I believe.
Speaking of “a lot of fund”, am looking for another opportunity to pick up SRS and maybe SKF again. Just biding my time.
Sorry, freudian slip (or just typo) – meant to type, a lot of “FUN”.
I will probably reload my long SKF/SRS/SDS play sometime on Friday; and it’s with Options. Yeah, I’m a sick bastard…
Prieur du Plessis @ 9:30
“For what it’s worth, the major US indices need to rise by the following percentages to get to the 50-day moving averages…”
That’s misleading. It may be true that, e.g., the SPX is 16% below its 50 DMA. But that doesn’t mean that the SPX has to rise that much to get to its MA; the MA will continue to fall even if SPX remains at the 850 level.
DOW put in its first consecutive 3-day gain since August 25. New bears should tread very carefully as many of the 2x inverse funds including SRS/SKF put in very nasty reversal sticks on Monday.