Monday, October 13, 2008
As mentioned last week and earlier today (8:30 am), it was to be expected to have a "mega rally", one the likes we have never seen before, and quite likely not to see again!
The DJIA was up almost 1,000 points in a day!
From Friday at 3pm to Monday at 4pm, with about 7 1/2 hours of trading, the DJIA ran 17% up!
To put this in perspective, from January 2004 through December 2006, a full 3 years in a "bull market", the market rose about 17%. And we rallied 17% in less than 8 hours!
WOW! That's one for the record books!
Don't believe the hype, we may rally more, but the higher we rally, the next fall, if it occurs suddenly, will likely be the final major down move, before we enter into a long choppy downward slant.
I really hope I am wrong and the US government fixes trust by establishing honest accounting, but to date this has not occurred.
I'll blog more later, but with such an impressive run in 7 1/2 hours, had to blog on this topic.
NOTE! Sudden spikes like this occur ONLY in a bear market rally, meaning going down. This confirms the market has likely not bottomed!