Wild Days
By Barry Ritholtz - November 25th, 2008, 9:15AM
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/
November 25th, 2008 at 9:30 am
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
November 25th, 2008 at 9:46 am
The 9 to 1 up and down volume thing has been getting trampled in the stampede as well I believe.
November 25th, 2008 at 10:24 am
Speaking of “a lot of fund”, am looking for another opportunity to pick up SRS and maybe SKF again. Just biding my time.
November 25th, 2008 at 10:25 am
Sorry, freudian slip (or just typo) – meant to type, a lot of “FUN”.
November 25th, 2008 at 10:31 am
I will probably reload my long SKF/SRS/SDS play sometime on Friday; and it’s with Options. Yeah, I’m a sick bastard…
November 25th, 2008 at 12:23 pm
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.
November 25th, 2008 at 8:36 pm
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.