Does 485 Point Rebound Mean Much?

reply to post by NGC2736


It means this roller-coaster ride is not over. Not over, by a long shot! (My cliche-line of the day.)

Originally posted by NGC2736
Just curious why this is going in such an unexpected direction.

doubt it was unexpected. People i saw on tv this morning, expected some sort of rebound today.

Who knows what it means, i doubt very much.

It wasnt on high volume which leads me to believe head fake. Im sure some people went in today and did some bargain hunting but I wouldnt be to quick to jump for joy. However if this bailout DOES go through then Im sure youll see the market jump 700 + points.

Originally posted by pluckynoonez
reply to post by NGC2736

 

It means this roller-coaster ride is not over. Not over, by a long shot! (My cliche-line of the day.)

This is what panic sex is nice. People like me get to take advantage of the sex while there is a panic and then when things calm down I will have gotten mine BTW this is in regards to a comment yesterday. I know youll be eyeing this one forum moderators.

[edit on 30-9-2008 by mybigunit]

reply to post by NGC2736

The people who sold their stock yesterday must have decided to buy it back today. Yesterday gas and oil fell. Today the markets were flooded with 630 billion in freshly printed dollars ,but the Euro fell. The Europeans must have also been running their printing presses like mad . This whole thing is becoming surreal.




[edit on 30-9-2008 by eradown]

Originally posted by NGC2736
Just curious why this is going in such an unexpected direction.

Well, I know this might sound a bit weird, but is it possible that despite themselves, the downvoting of the bill was seen as positive by the savvy investors who otherwise invested wisely and are not in trouble? After all, they have reports as high as 95% of the public who stand with them to NOT bailout the thieves.

reply to post by TrueAmerican


Good point.

I hope people don't buckle overtime. Hitler said something that I hope doesn't occur. He said:

"People are generally stupid, if you repeat the same slogans again and again they will eventually believe it."

If you keep saying crisis, the sky is falling, the great depression and now rescue package instead of bailout package people will start to change their minds.

I'm not comparing anyone to Hitler but people in power use the same propaganda techniques of Goebbels.

Like the Himalyas, there are lots of lesser peaks on the way down.

For instance, the '29 crash:




Lots of jagged, ineffectual rallies while on the rollercoaster to the bottom.

And don't forget the massive, unreported market interventions that are going on to push up stock prices. Markets don't sink like the Titanic; they sputter and rally but trend inexorably downward.

reply to post by gottago

reply to post by NGC2736


You didn't have the vast scale of the market in '29 as you have today; so volatility was much stronger, and you also didn't have the unseen hand of gov't and huge institutional investors acting to stabilize markets.

I'm highly suspect of any market falling nearly 800 points one day, only to rebound by over half that the next. This to me screams secret market intervention. You can be sure the FED and the other central banks are moving massive amounts of credit to support stocks and keep these market runs at bay. None of it is (relatively) new. But it was unheard of in '29, and that's why you had the steep plummet. Today we have market life-support--but it's still in the trauma unit.

Originally posted by gottago
reply to post by NGC2736

 

You didn't have the vast scale of the market in '29 as you have today; so volatility was much stronger, and you also didn't have the unseen hand of gov't and huge institutional investors acting to stabilize markets.

I'm highly suspect of any market falling nearly 800 points one day, only to rebound by over half that the next. This to me screams secret market intervention. You can be sure the FED and the other central banks are moving massive amounts of credit to support stocks and keep these market runs at bay. None of it is (relatively) new. But it was unheard of in '29, and that's why you had the steep plummet. Today we have market life-support--but it's still in the trauma unit.

I agree.
I feel the bailout/"buy in" debacle is merely a ruse to artificially fluctuate the market so those who have the ability to do so can extract more money from it before the market goes belly up along with the country. Lots of swings over the past week. Those who have been profiteering from this are the ones to be held accountable. The banking stocks today were among the strongest performers. Obviously. This entire scenario has been orchestrated to become the administrations OPUS. Of course, all on the backs of the already spent people.

I am now convinced that all we see in the main stream media, particularly the business programming, is like a gigantic twenty-four hour carnival broker enticing us into the tent where we get mugged.

Yesterday, it was, "How could Congress do this, this is the end of the stock market as we know it."

Today, it was, "Clearly the market rallies in anticipation of the bill being resubmitted and passing soon."

Shameless.

Like I said, shameless.

[edit on 30-9-2008 by Grumble]

reply to post by NGC2736


Stock markets don't just .. drop to the bottom (not any more anyways.. not like 1929 where a few men could case a massive economic explosion)

778 points down is a huge drop (1.2 trillion dollars actually), but only a 7% decline.

448 points UP means a small rebound, mostly people grabbing up cheap shares in the hopes the bill passes (which I am certain it will)... Not many people where selling because they are awaiting news on what's going to happen .. another failure and I agree with some economist, it could be catastrophic.

But as I said, markets don't just drop..

They go like this:

-200
+60
+10
+70
-100
-40
+120
+30
+17
-240
-40
-10
+50
-10
+80
+70
-400
+180


In the end, it's still a decrease (over time) .. when you see such a hypothetical display of numbers on a graph over a month you see a line dipping, rising, dipping, rising, often each dip lower then the previous (waves)

When ever you have a massive sell off, the next day is almost always a positive day.. people are buying stocks at discount, people put calls on stocks betting they rise, people hold off selling until stock numbers rebound and they can recoup value..

If your portfolio drops 78% in one day .. your not going to sell the next day for a huge loss.. you will ride it out, no selling, put some calls maybe, maybe even add liquid funds to purchase more of the stock.

Even after the 1929 crash, the following days where rallies..

Stocks will level out for the week, a few minor dips and raises, awaiting the House decision.

reply to post by Rockpuck

It's all the rhetoric. Bailout fails, stocks plummet. Talks of a reworking, stocks rise, but not as high as they were. The above was very true. We have quicker spikes now due to this governmental rescue BS. The markets are also more global. Europe's markets are falling right now, so investors are pulling out and plugging in here because we are still talking about this 700b BS. It will have its ups and downs all the way down.

rockpuck pretty much covered it.

what you had today was some people enjoying the discounted prices of many stocks.

look at it like this.

microsoft was down a few bucks on Monday. Microsoft is a cash rich company that, in reality, shouldn't go down as a result of the banking issues. So, it's cheap, snatch it up. Lots of people were doing this with companies across the board. So they went up in price.

question is, with the profits many people saw today, will they sell off tomorrow, creating another large drop?

I'm leaning towards us seeing some profit taking tomorrow.