posted on Oct, 23 2008 @ 04:57 AM
The market closed on Wednesday outside the expected +-4.5% range and that means it reacted to some news that affects its performance. In midday, the
DJI was comfortably heading downhill to meet the expected percentage loss within the interval, but then the rate of the descend increased. Here is the
Though there has been some dispute about whether third-quarter earnings would be a significant market mover, stock futures faced intense pressure
from the reports that came out before the bell Wednesday.
Did the market digest the news and would move on in its projected path tomorrow or not?
The final upward movement was caused by the traders buying low stock to sell at a higher price later. Faced with a gloomy economic outlook, the
investors would try to sell non-performing stock to buy something more durable. And so after some gain in the morning both traders, who need to sell
to make money, and investors, who will feel like diversifying, will join forces in selling. The downward movement will continue until the traders stop
it. With a little aftershock, the DJI may lose 5.2% of its opening figure.
The anniversary of the Wall Street Crash of 1929 is around the corner. Wouldn't be nice to observe the anniversary by DJI losing 1929 points in one
day? Actually there were two days of free fall -- October 28 and 29 with the initial precursor that took place on October 24 -- so this day will tell
us how the bash would look like.