Beware of the 900 Point Pop
The Dow jumped 889 points today, the second largest increase ever…and I don’t want to sound like the soothsayer, but beware the 900 point pop.
I know the market has been hammered and I know that many are factoring in an expected 50 basis point cut tomorrow from the Fed, but this makes no sense. The Dow’s gain doubled during the last hour of trading.
Financials led the Dow higher while techs led Nasdaq’s 9.5 percent jump. Take a look at the price gainers list for each exchange: NYSE and Nasdaq.
Citigroup up 15 percent, AIG up 35 percent. Moves like this are too big and too irrational to be permanent. Looks like just another bout of speculators and bargain-hunters trading on sectors and not on individual stocks.
Et tu S&P 500! ;)
Tags: 900 points, AIG, citibank, dowRelated Stories
POSTED IN: Corporate, Economy, Federal Reserve, Investment, Market, News
1 opinion for Beware of the 900 Point Pop
Dow Breaks 8,000, Is This The Bottom?
Nov 19, 2008 at 11:19 pm
[...] Traders were jumping for joy while I played the pessimist telling everyone to beware of the 900 point pop. Prior to the pop, I also said I thought we were nearing the [...]
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