September Comes In Like a Bear: Dow Down 2%, VIX up 11%

finance.yahoo.com/tech-ticker ^ | 9/1/09 | Aaron Task

[Kartographer]

Whatever the reason(s) for the decline, this may be the beginning of what many are calling an overdue correction after a big run, and Tuesday's decline is certain to revive stories about the market's historic struggles in September. The Dow has lost 1.3% on average since 1928 in September, making it the market's worst month, according to Bloomberg.

[Kartographer]

The captain has turned on the fasten seat belt sign, prepare for a bumpy ride!

[BGHater]

Just on a historical note, September is a sad month for the Market in general.

Combine that with the circus economy we have now; it might not be a pretty.

[Osage Orange]

Even shorting is dicey in this market..............

[rovenstinez]

But IF the U.S. Gov´t now is also ´buying´stock on Wall Street... they could get themselves in a pretty bad pickle.

[AngelesCrestHighway]

Market flucuations should be down 450 up 300....with the disaster called Obama the market should be around 2000. His bought off buddies in business and big union money has kept the appearance of a somewhat calm market. They can’t do it forever!

[AngelesCrestHighway]

God help us if Obango has raided the treasury to prop up the market.

[Osage Orange]

I trade what I see....

And that is a tough road most of the time, that requires hard rules, and mechanical measures.

Losses are part of this biz.....

[Signalman]

I got out of stocks last month and am 100 percent in Money Market funds and government/AAA corporate bond funds. It’s called, “Preservation of Capital”.

[CT]

Perhaps one of the more talented FReepers can show a comparison of what we have witnessed in the last 18 months, and how the Dow fared in the 18 months just prior to and after the 1929 crash. It is very illuminating. Yahoo charts or BigCharts.com has the ability to illustrate pretty well.

[george76]

[CT]

That was a nice chart, but not what I was thinking.

In a blog of a wek or so ago, I wrote this:
The year: 1930. The stock market (Dow Jones Industrial Average) had lost over 50% of its value during the previous year (August through October). But after the October 29' crash, the market started back up, eventually rebounding by 60% into the spring of 1930.

Up to this point, the pattern should be quite familiar with 2008. A crash in October that extended to over 50%. But a recovery of almost the same magnitude into the summer of 2009. If someone, or rather anyone interested and with the talent, can draw these two charts in comparison (DJIA for 1929-1933 and DJIA 2007 to present).