Dow up 1,174 Points in 4 Days: A Gain of 15.5%. Last Time we Had a 4 Day Gain this Big? August of 1932.

We have seen an unprecedented 4-day rally in the stock market.  This is rather astounding given the parade of bad news. New home sales hit half century lows.  Consumer spending has fallen to lows not seen since 2001.  Unemployment claims are running at multi-decade lows.

We also just bailed out Citigroup and have committed over $8 trillion to holding up the financial system.  The Dow Jones Industrial Average is loving it.  Over these past 4 days the Dow has rallied a stunning 15.5%:

Dow 2008

This is the biggest 4 day rally since August of 1932 when the Dow had a 25% 4 day streak:

Dow 1932

Hmmm.  Unemployment during 1932 was 24%.  There really wasn’t any good news coming out then and there isn’t any today unless you consider massive bailouts good.  If you think this kind of market volatility is good, I suggest you read this article.

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4 Comments on this post

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  1. anon nona said:

    As US dollars are siphoned from America, those who are stealing them will want to convert them into some other currency or possibly buy commodities with these dollars. As such the markets will be manipulated upward so that these people can get as much value out of the clearing operation. Some robustness in this upward trend should be expected so that it will be resistant to the mass liquidation so that this value is more or less preserved until the transfer is complete. Such stability is achieved directly and at the will of those who are benefiting from the liquidation, but will ultimately be credited to whatever bail-out schemes and new rules for the use of money await us.

    November 27th, 2008 at 8:27 am
  2. Jones said:

    So what you’re saying is that 75 years ago we had a set of completely different circumstances that resulted in a not-really-all-that-similar spike, different by a mere 40%. Is that what you’re getting at? That at a completely different time with little in common to today, we had another big rally?

    Brilliant analysis.

    November 27th, 2008 at 10:42 am
  3. Jones said:

    Anon nona said:__________________
    “As US dollars are siphoned from America, those who are stealing them will want to convert them into some other currency or possibly buy commodities with these dollars. As such the markets will be manipulated upward so that these people can get as much value out of the clearing operation. Some robustness in this upward trend should be expected so that it will be resistant to the mass liquidation so that this value is more or less preserved until the transfer is complete. Such stability is achieved directly and at the will of those who are benefiting from the liquidation, but will ultimately be credited to whatever bail-out schemes and new rules for the use of money await us.”
    ____________________

    Wow. Look at you. So many words and not a lick of fucking sense.

    November 27th, 2008 at 11:05 am
  4. ryan said:

    I reallly don’t know what he’s saying, it really isn’t very clear. Inteligent people which I believe anon is… sometimes have a hard time communicating in simple terms. Let me spell it out in line and verse as to what is going to happen over the next 1-4 years.

    The SP500 is going to 300, it’s at almost 900 now. The Dow Jones unless further manipulated by addition and subtraction will go to 1000, it’s almost 9000 now. Commodities of all kinds, gold and oil specfically will fall to 100 an ounce and 13 bucks per barrell respectively. We will have NO INFLATION, we will have DEFLATION. We are going into a worldwide depression. This is a total debt wipeout not since even in the Great Depression. This is the fleecing of the rich and the transfer of wealth to those who already have most of it. Derivatives, Collaterized Mortgage Obligations, 42-1 leverage and the like. Unemployment will rise to 25%. We are at a point of no return. The system is broken.

    November 27th, 2008 at 11:19 am

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