Friday, October 10, 2008
Worldwide Wipeout
Just when you thought it can't get any worse it does. The Dow lost 678.91 points, or 7.33 percent, to close the session at 8,579.19. The SPX declined 75.02 points, or 7.62 percent, to end at 909.92. All major markets in Europe and Asia fell be similiar amounts. We have nothing on....still waiting for that elusive bounce!
The session started positively, but selling ensued as the session progressed, with losses accelerating the last hour of the day. One possible reason for large losses was the end of the short-selling ban on financial stocks which sent financials sharply. Shares of Citigroup (C), Wells Fargo (WFC) and Wachovia (WB) all fell heavily and now look like good candidates for more down movement. Overall, the KBW Bank Index ($KBW) fell 11.89 percent to 48.75, though the index did remain above its 52-week low.
What is amazing is that these losses came on the anniversary of the SPX hitting its record high of 1576. I remember it well as our play for that month was close to being stopped out!!
Is the end in sight? People are saying it must be........but with SPX futures down yet another 31 points as I type and the rest of Eurpe and Asia seriously down as well.....I'm not so sure. Next major support for the Dow is 8000. Given the drops we are seeing today that is likely to be hit today. Also we are going into a weekend and traders are just plain scared to have open positions on in this market.
Until next time.
The session started positively, but selling ensued as the session progressed, with losses accelerating the last hour of the day. One possible reason for large losses was the end of the short-selling ban on financial stocks which sent financials sharply. Shares of Citigroup (C), Wells Fargo (WFC) and Wachovia (WB) all fell heavily and now look like good candidates for more down movement. Overall, the KBW Bank Index ($KBW) fell 11.89 percent to 48.75, though the index did remain above its 52-week low.
What is amazing is that these losses came on the anniversary of the SPX hitting its record high of 1576. I remember it well as our play for that month was close to being stopped out!!
Is the end in sight? People are saying it must be........but with SPX futures down yet another 31 points as I type and the rest of Eurpe and Asia seriously down as well.....I'm not so sure. Next major support for the Dow is 8000. Given the drops we are seeing today that is likely to be hit today. Also we are going into a weekend and traders are just plain scared to have open positions on in this market.
Until next time.
# posted by Paul @ 4:50 AM 
