Posted on 03/03/2009 10:36:09 AM PST by jessduntno
Back to the future: Stocks' fall may be a milestone
As U.S. stocks on Tuesday tried and then failed to bounce back from the prior day's stumble to 12-year lows, analysts, technicians and would-be historians debated the significance of the fall, which may or may not signal an important market milestone.
On Tuesday, financials were pacing a slide that came as Federal Reserve Chairman Ben Bernanke answered questions about the economy and the government's efforts to bolster the financial system. After rising 70-plus points early on, the Dow Jones Industrial Average declined 5.63 points to 695.19, and the Nasdaq Composite shed 4.85 points to 1,318.
On Monday, the Dow closed at 6,763, a level not seen since 1997. If nothing else, the breach of 12-year lows is unusual. Other than Monday's retesting of 1997 lows, such a crossing has occurred only twice before, on Dec. 6, 1974, and April 8, 1932.
What we found intriguing is that the 12-year lows were breached at a critical juncture in the bear markets," JPMorgan Chase & Co. equity analysts Thomas Lee, Bhupinder Singh and Daniel McElligott wrote in a late Monday research note. The breaches were very close to the final lows, they said.
In 1932, the April 8 finish came three months before the market hit its bottom, while 42 years later, the Dec. 6 breach marked the exact end of the 1974 low.
"We do not want to intimate that just because we are visiting levels seen 12 years ago, the bear market needs to suddenly reverse. But since 12-year lows have happened only twice in the history of the index and at important junctures in bear markets, we have to take notice," the JPMorgan Chase analysts said.
(Excerpt) Read more at marketwatch.com ...
Fingers and toes are crossed...but I don't think so...we are TODAY dealing with a community organizer who doesn't know when to shut up...
Two facts he left out. The Depression didn’t end in 1932, but continued on until the start of WWII. December of 1974 was not the end of the recession, but the beginning of an era of high unemployment, sky rocketing interest rate and run away inflation. I lived through the latter and have heard stories all my life about the former. I am not eager to see either revisited.
Thanks for that...yep, I think we need to shut these fckrs down pretty soon or there will be nothing left...I say start the impeachment now for Gross Incompetence and if that SOB doesn’t break out some credible ID, force the issue through the SCOTUS...
True. The GDP will signal the true bottom, and by all accounts, it is still in free fall.
Um, that would be the S&P, genius. Marketwatch strikes again.
“Two facts he left out. The Depression didn’t end in 1932, but continued on until the start of WWII.”
Some look at those years as back to back recessions, rather than one event. The “bottom” referred to (I think) was the bottom that led to the beginning of the upturn in ‘33 only to fizzle, leading to the second downturn in 36 that lasted until the war...
Been following Karls blog for quite a while now and spreading the word to all public officials that would listen. But they’re not listening! Are they that stupid or do they WANT this to happen?
I think it’s the latter. God help us.
On Tuesday, financials were pacing a slide that came as Federal Reserve Chairman Ben Bernanke answered questions about the economy and the government’s efforts to bolster the financial system. After rising 70-plus points early on, the Dow Jones Industrial Average ($INDU:Dow Jones Industrial Average
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Last: 6,794.20+30.91+0.46%
2:12pm 03/03/2009
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$INDU 6,794.20, +30.91, +0.5%) was off 32.97 points at midday, at 6,730.32. The S&P 500 ($SPX:S&P 500 Index
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Last: 703.15+2.33+0.33%
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$SPX 703.15, +2.33, +0.3%) declined 5.63 points to 695.19, and the Nasdaq Composite (COMP:Nasdaq Composite Index
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Last: 1,332.98+10.13+0.77%
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COMP 1,332.98, +10.13, +0.8%) shed 4.85 points to 1,318.
Anyone check the DU today?
An active 185 post thread is titled:
“ BLANK the Dow....... Can Greed Die Already?”
(You know what the blank is, I wont print it here).
Unless you have a really good sense of humor or a cast iron stomach, I would not recomend going to the site and reading the comments. These people are SICK
“These people are SICK”
Let’s be fair. Some of them are just stupid. Others are just incredibly ignorant. Many are so stupid they don’t realize they’re ignorant. And, yes, many of them are also sick.
“ BLANK the Dow....... Can Greed Die Already?”
Some pimple faced idiot who thinks the world will be better off without electricity...
I hope not. I like getting goods and services through a process of mutual voluntary exchange.
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