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Finally: Capitulation (whew!!)

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October 10, 2008 – Comments (3)

I note, for the record, that someone else blogged about this yesterday. Today, however, even I see it.

With satisfaction, I see many newswire stories using words: "panic", "fear", and "frantically". I also note that the volume finally blipped up, but not as much as I would like. So, it seems that we are very near the bottom. Finally: I am tired of seeing all of my investment accounts several $k's in the red; just once, I would like to see my them actually gain $$$. Those who have kept their powder dry (count me out; I was tapped out when the DJIA was 10K), take note.

However, there are several things that puzzle me. If you can explain, please speak up. The 25%+ decline over the past 2 weeks was accompanied by really thin volume; no more than a regular, non-panic trading day. Today, DJIA easily whipsawed 1000 points. This all tells me that the current decline is really thin in body. Perhaps, small buying pressures will create substantial up moves. I suspect that the current market will recover much faster than people expect. OK: maybe I am just whistling past the graveyard, yet, still...

 

3 Comments – Post Your Own

#1) On October 11, 2008 at 12:12 AM, Harold71 (21.98) wrote:

The 25%+ decline over the past 2 weeks was accompanied by really thin volume; no more than a regular, non-panic trading day.

So the sellers didn't step forward, but all the buyers simply stepped back? 

Either way this market has been an obvious short for a long time.  Perhaps a breather is in order....I hope so. 

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#2) On October 11, 2008 at 12:30 AM, MikeMark (29.55) wrote:

Hi Jerry,

I believe you may be looking at the waves instead of the ocean. I recommend reading all you can about the credit bubble collapse. The best place to begin is with dwot's blogs all the way back to Dec 2007. The last collapse somewhat like this happened around 1929 to 1933. I'm not the doomsday type. Just want you to be able to understand what may be happening.

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#3) On October 13, 2008 at 10:21 PM, jerryguru69 (97.12) wrote:

So the sellers didn't step forward, but all the buyers simply stepped back? 

Yeah, something like that. Note the date of my OP.

 

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