Posted on 08/09/2011 11:59:34 AM PDT by goods
On Thursday September 12 2008, just days before the September 15, 2008 Lehman collapse, the Dow Jones Industrial Average closed at 11,421. More than two weeks later on September 30, the Dow closed at 10,850; a drop of only 571 points.
But we all know that the 571 point drop was only the beginning!
Did we have some hefty down days in the two weeks following the Lehman collapse? Indeed, but half the trading days in the two weeks after Lehman, the Dow ended up by an average of 287 points per up day. Here is the breakdown:
Up 142 Points September 16
Up 410 points September 18
Up 369 Points September 19
Up 197 Points on September 25
Up 121 Points on September 26
Up 485 Points on September 30.
The above numbers teach us two things:
A) Having a few good days on Wall Street does not mean things are turning positive.
B) The Lehmann collapse on its own did NOT do THAT much harm to the markets. (Losing 571 points in two weeks is not a lot. Is it now? See, DJIA Early August, 2011). Instead, it was the politically-driven panic by a then-popular Presidential Candidate who – together with his party – talked down the economy more than needed; spread fear in the markets beyond that what was warranted and the crisis expanded and spread.
Yep.. Fed released a statement, No QE3. Spoiled brats on Wall Street were expecting it. We go down from here.
Still over an hour left. post FOMC, this ain’t going to be an up day.
Just noted that it is at -89.53; doesn’t look like a gain to me.
No gains until later in the week...Thursday or Friday. Just IMHO.
Touched a new low at 1060. First reached by the Dow on April of 1999.
Last seen September 10th of 2010. So he’s almost rolled back a full year of gains. Still about 600 up on the year from the lows.
+340, interesting
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