Winner 2013 Webby Awards for Best Political Website
Top Banner, Site wide
Apr 16, 2014

 Choose a size
Text Size

Top Leaderboard, Site wide

Paul Robeson: A Life

Truthdig Bazaar
The Day Wall Street Exploded

The Day Wall Street Exploded

By Beverly Gage

Beyond Bogotá

Beyond Bogotá

By Garry Leech

more items

Ear to the Ground

What Goes Down ... Dow Up 10 Percent

Email this item Email    Print this item Print    Share this item... Share

Posted on Oct 28, 2008

The Dow shot up 889.35 points on Tuesday, a welcome respite from Wall Street’s month of plunges. Things could still get a lot worse: While some buyers snapped up what looked like bargain stocks, others said they expected a major drop before things get better.

Wall Street Journal:

Heading into the end of October, the Dow has plunged 17%, on track to register as the worst month in its history. But that plunge has whetted bargain hunters’ appetites and forced some money managers whose funds are required to hold a certain percentage of money in stocks to come back into the market as the time approaches to mail month-end statements.

Despite Tuesday’s gains, some participants remain concerned that trading volume has been light, making it difficult to gauge investors’ level of conviction that the gains can continue. Exchange-only volume at the New York Stock Exchange on Tuesday struggled to reach the month-to-date average of 1.7 billion shares.

Although it didn’t happen Tuesday, the stock market lately has often been plagued by forced selling among hedge-funds and other deep-pocket players, who have to raise cash to cover margin calls as the market goes down. While such activity has often produced avalanches of selling lately, some veteran investors are still looking for a one-time market plunge, accompanied by big volume, to confirm that the forced selling has truly run its course, paving the way for a more sustained rally.

Read more

More Below the Ad


Square, Site wide

New and Improved Comments

If you have trouble leaving a comment, review this help page. Still having problems? Let us know. If you find yourself moderated, take a moment to review our comment policy.

By Fahrenheit 451, October 29, 2008 at 3:57 am Link to this comment

The stock market no longer reflects the true economic condition of this country and hasn’t for a long time.  But I think Nuriel Roubini is correct; we haven’t hit bottom by at least 20%.  This 11% rise is a false indicator.

Report this

By libertarian, October 29, 2008 at 3:19 am Link to this comment
(Unregistered commenter)

Look at job loss and shopping trends. If you buy stocks long now, you are inviting disaster. Check out inverse shares and gold, all etf’s. Don’t be fooled by the CNBC promotion of stocks. Add some inverse-etf’s. I’ve stayed 40% above the S&P;with this.

Just as examples, if you buy GLD, short a third of it with DZZ. If you buy MDY, a nice long-term gainer (till now ), protect yourself with something like pssdx. Dont take my word for it, check the charts. Brokers will not help you with downside protection.

Report this

By troublesum, October 28, 2008 at 6:15 pm Link to this comment

Is this Obama’s idea of shared sacrifice: wall street firms like Goldman Sachs and Merrill Lynch are laying out $13 billion in end of year bonuses for their ceo’s and other executives.  And some of these firms are raking in billions from the taxpayer bailout plan.  Obama is keeping his mouth shut.  Sacrifice is for little people.  Source:

Report this

sign up to get updates

Right 1, Site wide - BlogAds Premium
Right 2, Site wide - Blogads
Join the Liberal Blog Advertising Network
Right Skyscraper, Site Wide
Join the Liberal Blog Advertising Network

A Progressive Journal of News and Opinion   Publisher, Zuade Kaufman   Editor, Robert Scheer
© 2014 Truthdig, LLC. All rights reserved.