Massive Market Upspike? (Opposite of a Crash)

Discussion in 'Trading' started by kmiklas, Nov 29, 2016.

  1. kmiklas

    kmiklas

    Heya Peeps,

    Lately I've been noodling on market crashes. Some that immediately come to my mind are:

    • The crash in 2008
    • The "flash crash" in 2010
    • The great market crash in 1929
    In your knowledge, has there ever been a massive market upspike? I'm at a lack of words to describe this.. imagine the mirror image of a market crash. An anti-crash? Market explosion? I know that the news will often say, "Market soars!!!," but I mean really rocketing up. Basically, where the entire market gains more than 10% in a day.

    Imagine a short squeeze... on the entire market!? Of course there have been huge gains in specific equities, and even market segments... even in recent history, the post-election "Trump Bump" fueled the financials up significantly, but has this ever happened to the entire market?

    (Here the assumption is U.S. markets, but I'll take massive upspikes in other markets if you know about them)

    I have never heard of such an event occurring.

    Sincerely,
    Keith :^D
     
  2. Robert Morse

    Robert Morse Sponsor

    Yes, just after a crash.
     
    JackRab likes this.
  3. kmiklas

    kmiklas

    Thx Robert. How about under "normal" circumstances; a case where the market is happily bubbling along, and then violently upspikes, gaining 10% or more in a day?
     
  4. Bob111

    Bob111

    have you seen the charts lately? IWM for example? biotech indexes? define your "market upspike". there is been 10-20% moves all over the market in past couple weeks. more than enough to me to qualify as an "upspike"
     
  5. Robert Morse

    Robert Morse Sponsor

    Not in a broad based index in my 35 years in the business. In 2000, we had one +4.93 day. That is the closest I can find.
     
  6. xandman

    xandman

  7. Pekelo

    Pekelo

    The Fed dropped the rate on a Monday I think, out of the blue, like 10 or so years ago... The market rallied like crazy.

    This wasn't that. but similar effect, on 2008, Dec 15th:

    "The dramatic move sent stocks soaring as the Dow Jones industrial average surged 4.2% and broader indexes jumped more than 5%..."

    http://abcnews.go.com/Business/story?id=6474821&page=1

    By the way the 2 largest daily point changes were rallies:

    https://en.wikipedia.org/wiki/List_of_largest_daily_changes_in_the_Dow_Jones_Industrial_Average
     
    Last edited: Nov 29, 2016
  8. comagnum

    comagnum

    The dot.com bear market had a number of days where the NDX-100 (QQQ) was up over 10% on the day, usually from positive earnings upside from the tech leaders like Cisco. The largest gain was the day after new years 1-3-2001 when the QQQ closed up 14% on central bank news. That is just the index - many of the tech & biotech stocks put in much larger returns like 30% on those 10% QQQ days.

    upload_2016-11-29_11-39-4.png

    If you want to learn about all the big bubbles and market manias through history a cool book on that is 'Devil take the Hindmost' - Gives you some serious insights.
     
    Last edited: Nov 29, 2016
    kmiklas likes this.
  9. Robert Morse

    Robert Morse Sponsor

    Those were the good old days.
     
    #10     Nov 29, 2016