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Oh, No: Dow Testing 8000 AGAIN?!?



January 16, 2009 – Comments (4)

Relax, pop open another beer. Since the market crashed in late Nov, the DJIA has been trading sideways in the range of 8100 to 9000. This time, however, I feel much better about the decline. Yes, the Santa Claus rally is over (like they said on pbs/nbr today), and the dow has gone down. This time, though, the market is acting rationally and predictably to bad news about the bad shape that banks and retail are in. None of this panicky, almost 1000 point swings in a single trading session (and rallying a few hundred points on bad unemployment news). So, from here, I expect the market to react to the latest economic business news as it should, and to finally start heading up once evidence that the recession is easing appears.

4 Comments – Post Your Own

#1) On January 17, 2009 at 1:23 AM, SideShowMel0329 (32.12) wrote:

The recession has already been priced in, tenfold. Start buying intrinsicly sound companies with solid dividends before everyone else goes bullish.

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#2) On January 17, 2009 at 2:25 AM, goldminingXpert (28.77) wrote:

this was a good rebound. If it goes on for another week or two, it will suck in bulls' money and get everyone complacent. Then boom, we bust through 8,000 with conviction and the bear market resumes.

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#3) On January 17, 2009 at 8:09 AM, d1david (28.59) wrote:

goldmining- we just need this little rally to get the vix down to the 20's again, so i can buy some long dated puts and just ride this out

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#4) On January 17, 2009 at 10:16 AM, goldminingXpert (28.77) wrote:

I'd kill for a VIX in the 20's again. Oh no, don't mind me, I'm just going all in on way out of the money S&P puts. [whistling]

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