Sea of Green for Wall Street on Columbus Day
The nation's bond market is closed today, as well as all banks, in observance of the Columbus Day holiday. The stock markets were open.
Wall Street Rallied today, sending the Dow Jones Industrial Average up 936 points, its biggest-ever point gain, the biggest one-day percentage advance -- 11% -- the biggest single-day stock rally since the Great Depression -- since March, 1933.
No one is saying the worst is over for the troubled economy, but buyers have returned to the stock market scooping up stocks at fire-sale prices.
Will tomorrow be a follow through day? Will traders sell into the rally? Surely better days are coming...just not so fast.
After the Black Monday crash of October 1987, it took the Dow until August 1989 to set a new all-time closing high, almost two years after its previous peak. The 1987 crash took stocks down 36 percent from their pick — comparable to the 40 percent decline in this round of turmoil.
The recovery from the 1929 crash was more difficult, and spanned a quarter century.
The market is bouncing back based on government intervention--look-out below!
Wall Street still has plenty to worry about, a housing market that is still groping for a low point in prices and shoppers who are spooked by job losses and other ominous economic signs and are cutting back on their spending.
Is this the bottom? Is this a bear market rally? It was the smartest guys in the room that got us to this point so why would we continue to follow their advice.
Beware of anyone who says they can spot a bottom.
The Dow closed today at 9,387.61. I've already heard too many people say "the bottom is in". If you feel lucky go for it. Just remember these are the same people that said the bottom was in before the crash. More hot air.
