Will the US$ 700 bn bail out bring America on its feet? The Wall Street thinks so.... as of this moment it is 228 points up, when today's top news is... job losses at 159,000 in September 2008; straight nine months of losses !
Every analyst and trader understands that the malaise affecting our financial markets runs deep. Investment gurus are foretelling a situation worse than the depression of 1932. So what is this rally indicating? Pure punting, speculation, gambling..... We have allowed our markets to be hijacked by people who should be on a casino table in Sands rather than Wall street. Tragically, some small investors may be lured at this first sign of recovery, thinking the worst is over. My advice to you: Please stay away. This market is for people who run P and Ls on Bloomberg terminals and not you. This market is still headed down and you will see a decline, if not equally sharp, to new lows by the end of this month. My call: Dow Jones will breach 10,000 before October 31.
Monitoring.......
U.S. stocks plunged today after markets around the globe tumbled and financial fears intensified. At 1:25 p.m. ET, the Dow Jones Industrial Average was down 491 points to 9,833. The index had been down as much as 587 points at its session low.
quoted from msn money 6th Oct. 08
The Dow Jones Industrial Average dropped 508.39, or 5.1 percent, to 9,447.11, giving it a 29 percent retreat in 2008 that would also be the worst in 71 years. The Nasdaq Composite Index lost 5.8 percent to 1,754.88.
Quoted from Bloomberg / 7 Oct 08
Stocks have been battered over the last three days, even more than I ever expected. Obviously, redemption pressures & more of hedge funds working over time.... A bear covering is surely expected and some recovery is likely within this week. Since expectations, rumours and news drive the market, ultimately, I may not be able to stand with a prediction of 9800 or thereabouts by Oct 31st. A 9200 seems more than imminent, even if we see 9000 breaking in the interim.
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