There is a fundamental difference this time comparing to 87. In 87, all major components of the stock indices drop at the same time, at about the same rate to start off the selling and panic. This time, crash is done and over with on the brand name financials. To see a further drop, we are talking about systematic failure of the whole financial system. If that is the case, 1. no need to trade, 2. if trading on the short side, will likely be prosecuted. :eek:
i was refering to the psyche of the public,its overall fear,the beginning of the 87 sellofff was 2800 down to 1800,1000 out of 2800 is huge,this is much more controlled and computerized than it was then,a lot easier to hedge also,thousands of derivitaves
But keep in mind that even when the notorious "up-tick" rule was enforced, the market managed to sell off in the aftermath of the tech bubble. They can implement anything they want, or better yet, Bernanke can slash the interest rate down to zero, zip, nada for all I care, it will not change the fundamentals of the systemic problem that ails this economy. Unless the core problem isn't resolved, which the government talking heads think they can just slide by unnoticed, we ain't going anywhere. While it's okay to stick their heads up their collective ass, it's ludicrous to blame shortsellers for the current crisis.
/L 1171 2pt stop 9:53 stp to be 9:54 ex 1/2 1177.5 +6.5 "Possible gap and run day, may look to buy the first pulback" we need a bush rally!
bottoms are made when fundamental factors are close to inflection coinciding with technicals. fundamentals are in no way about to shift.... macro picture will be like this for a month or two.
dont go against the fed/gov, it's crystal clear they are focused on the shorts now. ms and gs are my indicator of the day, both going positive bias to the upside going in, will stay out of shorting today unless it gap up 60-70pt or something crazy
It's over folks all up from here. Anyone catch the RED PRINT on the front cover of IBD. LOL, run for the hills.