Comments on: STUNNING!!!

By: howard432

howard432 — Thu, 30 Oct 2008 18:26:58 +0000

This is a question without a premise because the composition of indexes themselves have changed radically over the years. Many old Dow components no longer exist. Next, ten percent of 10,000 is 1,000 but the market was below 1,000 for most of the life of this country, so 10% would be 100. If you’ll check you’ll see that “Black Friday” in ‘87 saw the market fall more than 20%; in ‘29 it fell from 381 to 145 a smaller move by today’s market but in terms of percent it was more than 60%. This was followed by a big rally until it collapsed again in 1931 never to return until 1953. The actual ‘29 top to bottom drop was 89%. Today that would have been a move of 9,700 points—-different times.

By: T A Gray

T A Gray — Wed, 29 Oct 2008 14:10:25 +0000

But to answer your question, you’d probably have to go back a ways, I just dont know. The crash in ‘29 the major index bottomed at 41 from a high over 200, not sure what it bounced back to, but it took us nearly 30 years to hit 1,000.

By: T A Gray

T A Gray — Wed, 29 Oct 2008 14:02:59 +0000

At this point, I wouldn’t go further than to say its a reaction to the market being grossly oversold, more than or regardless of any political activity. Hardly an indication we are on solid ground yet. I would also expect some profit taking by the day traders to take it back down a few hundred points.