alevin
08-13-2011, 01:20 AM
Pardon my phobia about getting back in the market just yet...:suspicious: In this case, I'd rather he be wrong and me be out, than he be right and me be IN. :sick:
We should mention here what it actually means, per experience, when the market manages to advance by over 400 DJIA points in a single day. It doesn't mean anything good as it were. So far – since the March 2000 top in the Nasdaq – every single time the DJIA has risen by 400 points or more in a single day, the market has not long after made new lows below the low whence the rally sprang from. On every occasion but one – the 2010 summer correction, which was comparatively mild – did the market subsequently suffer a larger decline than the one preceding the 400+ points single day rally. Obviously, the sample size is quite small and there is no guarantee of a repeat performance. The fact remains however that bull market rallies are just not that fast and big.
more...http://www.financialsense.com/contributors/pater-tenebrarum/2011/08/10/a-first-in-eight-decades (http://www.financialsense.com/contributors/pater-tenebrarum/2011/08/10/a-first-in-eight-decades)
We should mention here what it actually means, per experience, when the market manages to advance by over 400 DJIA points in a single day. It doesn't mean anything good as it were. So far – since the March 2000 top in the Nasdaq – every single time the DJIA has risen by 400 points or more in a single day, the market has not long after made new lows below the low whence the rally sprang from. On every occasion but one – the 2010 summer correction, which was comparatively mild – did the market subsequently suffer a larger decline than the one preceding the 400+ points single day rally. Obviously, the sample size is quite small and there is no guarantee of a repeat performance. The fact remains however that bull market rallies are just not that fast and big.
more...http://www.financialsense.com/contributors/pater-tenebrarum/2011/08/10/a-first-in-eight-decades (http://www.financialsense.com/contributors/pater-tenebrarum/2011/08/10/a-first-in-eight-decades)