Market crash: are we there yet ?

[camaraderie]

Closed up for the day after being down over 300. Go figure!

[ReverendMike]

It all makes perfect sense, just not to me!

[Sapperwhite]

Yeah.....that was not normal trading. Of the top ten Dow winners, 9 were lenders.......that was a big time pump. Which one of you is tripping all over yourselves to go out and invest in a mortgage company that is about to go bankrupt?

[Sapperwhite]

And it didn't close up, they still closed 15 down.

[SteveSouthwood]

Originally Posted by Sapperwhite

The FED had to have just pumped it

Why must they? Perhaps this is the only conclusion you can maintain short of abandoning some of your convictions. Hope you didn't sell all your Bear Stearns stock.

This is all a major blow in the ocean. Those that go out unprepared will have a lousy, fearful time. Those who overreact may not come out alive. But those that are prepared and have a sound understanding will not be comfortable but know they will survive and just maybe better off with the experience.

Sorry - had to throw in a sailing metaphor.

[wind_magic]

Cash had another pretty good day.

[SteveSouthwood]

Originally Posted by wind_magic

Cash had another pretty good day.

That it did. Cash rose relative to gold by 3% today - stunning result.
Course, the S&P500 did 0.3% better than cash today.

Hey - I like this. I just realized that on practically any day, I can go out and find numbers to support my wild ideas. Isn't that neat.

[Sapperwhite]

So can someone explain why the financial market, the cause of this mess, all the sudden rallied 340 points in 45 minutes out of nowhere? I'd like to see who can explain why all the sudden all the investors just calmed down, took a breath, and started pumping their money into the sector that has been driving this craziness. The only thing I have heard or read was that an undisclosed Chinese bank MIGHT invest in Bear Stearns... so who can explain that sharp upswing? Did the market bottom out?

[PBzeer]

Originally Posted by Sapperwhite

So can someone explain why the financial market, the cause of this mess, all the sudden rallied 340 points in 45 minutes out of nowhere? I'd like to see who can explain why all the sudden all the investors just calmed down, took a breath, and started pumping their money into the sector that has been driving this craziness. The only thing I have heard or read was that an undisclosed Chinese bank MIGHT invest in Bear Stearns... so who can explain that sharp upswing? Did the market bottom out?

That presupposes they were acting rationally in the first place.

[SteveSouthwood]

Probably for no better reason than it has fallen by such large amounts recently. Hysteria and herd instinct. Whole market reactions based on what investors don't know rather than what they do. The volatility is predictable. The directions are not. At least not in the short term.