Wednesday, October 29, 2008

Last Minute Reversal In The Dow!

The Dow Jones Industrial Average had a change of heart reversing nearly 400 points in the last several minutes of trading finishing at 8990.96 down 74 points for the day. Just 2 hours after the Fed cut rates by a half a point. The rate cut was already factored in. Then what spooked the market in the last few minutes of trading? Many traders on the floor of the NYSE think that it was comments coming from GE's CEO Jeff Imelt However after yesterdays run up of 10% it could be bigger players unloading some positions. Who knows? One thing is for sure the market seems to have a lot of elasticity to it lately.


  1. yeah, the volatility is amazing. I figured that last 11% spike up was another suckers rally just like that last big one we had awhile back.just my theories. I figure every spike is followed by a sell-off bc, one it works, money isn't going to be coming in soon in any force, the economy is getting worse, tax selling, all that. Wish I had more money and a futures account to short these spikes. : )

  2. I was also reading what Zweig wrote in the Wallstreet Journal. He looked at previous bear bottoms and the reversal was almost suttle after everyone seemed to give up on finding a bottom. PEople are still to fixated on every move in the DOW.

  3. Mark

    I later read that the comment Jeff Imelt made was taken wrong.Just goes to show you that traders are hanging on every little thread of info and rumor disregarding any real value.

    I will look for that Zweig article.

  4. Really nice & clean blog Mark. I hadn't come across it before until you commented on one of my posts, but I'll have to start making it a regular visit.