Dow Intraday
Monday, October 6, 2008 at 12:50PM Market commentators this afternoon seemed downright masochistic, as many of them complained that we needed to be down even more after falling close to 800 points today. Then, as the market rallied back in the last hour of the day, those interviewed on CNBC were complaining that it didn't mean capitulation was taking place. But who ever said that capitulation couldn't happen in the middle of the day? And since when was an 800 point drop and a VIX spike close to 60 not considered panic selling?
As shown in the chart below, while it still closed down significantly, the Dow rallied back nicely in the last hour of the day. Investors usually like to see the market sell off in the morning and rally into the close, as the "smart money" trades at the end of the day. It's hard to imagine being happy with a 300+ point decline, but looking at how bad it could have been, we'll take down 350 over down 800 any day.
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Reader Comments (4)
DEAD. ON. RIGHT!
Actually, Art Cashin's scenario was misunderstood. He wasn't saying the mkt couldn't bottom mid-day; his scenario called for a 1 1/2 day rally-less decline. That's why he wanted to see it close on the lows on Monday; so it would bottom mid-day on day TWO.