- October 28-29 1929 The stock market crashed 25% in two days heralding the onset of the great depression
- October 19,1987 The stock market crashed 20% in one day on what became known as Black Monday
- October 6-10, 2008 The stock market dropped 20% in one week as it looked like the entire financial system was going to meltdown.
- October has marked the end of the 1946, 1957, 1960, 1962, 1966, 1974, 1987, 1990, 1998 and 2002 bear markets
Markets have opened sharply lower today as the European Union has denied a vital aid payment to Greece. The Greeks keep missing their budgeting targets and the European Union has said that they must cut more. It looks like a Greek default is imminent and that is why market's are crashing. Like I said before, trying to get money out the Greek people is like squeezing blood from a turnip! It's time to let Greece default and let the chips fall where they may. This extend and pretend just isn't working anymore.
WOW, WHAT A FREAKING DAY FOR THE MARKET!!!!!! Just insane movements today. In the last hour of trading, we moved up over 350 points!! There was some BIG BIG MONEY in the markets today buying in the last hour of trading. Some say it was the PPT or Plunge Protection Team, but whatever it was, big institutions were putting money to work today in the markets.
The DJIA ended up 153 points today after earlier being down as much as 250 points. The S&P 500 more than 2% and the NASDAQ was up 3%. Oil was down 1% and gold was down 3%! This looks like the bottom for now.
In the early going stocks spiked up and I thought we might have a huge reversal today so I closed my short positions that I opened yesterday for a tiny loss. Good thing I did because had I kept them I would have been stopped out already!! The Dumb Money indicator works!
Unfortunately, I did not go long at the end of the day because my brain is fried right now watching this crazy action and I was too frozen to do anything. I would have loved to buy some AAPL today which tagged it's 200 day moving average in a vicious selloff on the release of the iPhone 4GS. Apple dropped from 384 to 354 during the day and then bounced hugely off the 200 day moving average to finish at 372.
Just an insane day in the markets today. I went ahead and bought some small caps, european large caps and ems today for my long term portfolio. This could be the bottom for awhile. Let's see what happens.
Disclaimer: Nothing in this blog should be construed as a recommendation to buy or sell any securities! Please do your own due dilligence before buying any stocks or bonds!