Dow jumps nearly 900 as investors seek bargains

[GeorgeD]

This is just crazy. Up 900 points today and still not at sustained levels of a month or two back.

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Dow jumps nearly 900 as investors seek bargains

TIM PARADIS | October 28, 2008 04:26 PM EST | AP

NEW YORK — Wall Street had another astounding advance Tuesday, with the Dow Jones industrials soaring nearly 900 points in their second-largest point gain ever as late-day bargain hunters stormed into the market. The Dow and the Standard & Poor's 500 index were each up nearly 11 percent.

[zengrifter]

Coming up next... a screaming free fall! Bonzaaaaaaaaaai! zg

[glovesetc]

today at its best - people afraid they were going to miss the bottom - LMAO! They have not seen the bottom yet . The markets high was 14,146 a few months ago and it is now after todays advance only down 5,000+ points . Hmmm sounds like a good time to buy - not . The market is in a trading range and even Timmy the Gorilla { Housed st the Brooklyn zoo} knows that . Tim has been a proficient stock picker over the years ! When Timmy takes a huge $hit the market is headed down . He has been $hitting monster dumps lately so it is not wise to go against him . A zookeeper reads the wall street journal or {urinal ??? }to him everyday . The market is in a range and with ever heavier unemployment looming , retail sales in the toilet , houses being given away[ they are mostly foreclosed sales as well like 85% of them } , new home sales up 6% from a year ago when they were at the low point , and the new government coming in and you will get erratic days like this . That being stated you will see the market trend downward and you will see gyrations big time !!!!Stay in cash and buy the deal of the decade {no make that century } down the road . Please no one tell me how you lose 2% or so a year keeping cash as it beats losing 10,20,50% of your cash in a market correction or get whip sawed to death .

[Thunder]

ahhh but Glove, some of us know how to trade the gyrations :-) Let's face it, everytime you read about how the market went up ro down because of this or that, it's usually bs. Speculators drive the market, not the actual news. I think you'll find that there have been many times in the past where they lowered interest rates and the market went down. The only reason why interest rates are going down is because oil prices have gone down so the feds know they don't have to worry as much about inflation. Funny though that the justification that many businesses used for raising prices (higher oil prices) no longer exists, yet the prices haven't gone down. You likely won't see it go down either as the company who first lowers prices may have a competitive advantage in the short run, but when all of its competitors lower their prices too, that advantage is gone and then you have a pricing war which leads to lower profits.

[glovesetc]

you have a market that is excellent for day trading as the moves are so huge in BOTH directions !!!! I remember in the 50's a 2 point move was considered a huge move - lol ! Times change for sure and new techniques especially the ones you employ are superb but for most younger people buy the dips and hold for the long term and you will be fine !Long term meaning 5-20 years !! I personally feel bad for the older people who have been decimated that are reaching retirement age and do not have that time left to wait the market out or worse they got margin calls they could not meet and were liquidated .I think day trading or short term is excellent although many frown on it and they blame the speculators and the day traders for this mess we are now enjoying . Wrong !!!!!! They had a small part in it but it was unregulated hedge funds , pools, and financials that really put it over the top and that is the way that cookie crumbles. When I sold my companies 4 years ago I liquidated my IRA.401K. and a roth and paid the taxes and left themarket cause I had alot of stocks in there from the 60's and the 70's that I rolled over into the 401k and they were bought for nothing. An example being I had 5,600 shares of GMM at an average cost of like $8.00 ! Glad i bailed as I missed the highs of near $100.00 but also missed the lows of $4.00 and change !!!!

[aslan]

The main rule of the market I have learned over the years is that it is easier to get poor than it is to get rich. It takes real knowledgeable study to make money in the market.

[GeorgeD]

Originally Posted by Thunder

ahhh but Glove, some of us know how to trade the gyrations :-) Let's face it, everytime you read about how the market went up ro down because of this or that, it's usually bs. Speculators drive the market, not the actual news. I think you'll find that there have been many times in the past where they lowered interest rates and the market went down. The only reason why interest rates are going down is because oil prices have gone down so the feds know they don't have to worry as much about inflation. Funny though that the justification that many businesses used for raising prices (higher oil prices) no longer exists, yet the prices haven't gone down. You likely won't see it go down either as the company who first lowers prices may have a competitive advantage in the short run, but when all of its competitors lower their prices too, that advantage is gone and then you have a pricing war which leads to lower profits.

Enlighten us in trading the gyrations, brother Thunder.

... something more than "buy low sell high" and "short high close low" would be nice.

[Thunder]

It would be really hard to teach what I know on here and many people have tried to discredit it as an art, but I suggest you learn everything you can about technical analysis. (Candlesticks, moving averages, support/resistance, patterns, etc.) It will take patience and a good ability to analyze charts but when done correctly, I believe it can be a good way to supplement your decision making. Note, that it does not have to be used solely for daytrading. It can be used for any time frame from 1 minute to years.
Personally, I don't support the buy and hold theory for long term (>1 year) gains. I think we have seen that there are far too many examples, where this does not work and you run the risk of losing everything. (Enron, Worldcom, the financial companies of late, etc)

[zengrifter]

Originally Posted by Thunder

It would be really hard to teach what I know on here and many people have tried to discredit it as an art, but I suggest you learn everything you can about technical analysis. (Candlesticks, moving averages, support/resistance, patterns, etc.) It will take patience and a good ability to analyze charts but when done correctly, I believe it can be a good way to supplement your decision making.

Why not chart your session results at BJ, look for heads and shoulders,
candlesticks, patterns, etc., and size your bets accordingly? zg

[GeorgeD]

Originally Posted by Thunder

It would be really hard to teach what I know on here and many people have tried to discredit it as an art, but I suggest you learn everything you can about technical analysis. (Candlesticks, moving averages, support/resistance, patterns, etc.) It will take patience and a good ability to analyze charts but when done correctly, I believe it can be a good way to supplement your decision making. Note, that it does not have to be used solely for daytrading. It can be used for any time frame from 1 minute to years.
Personally, I don't support the buy and hold theory for long term (>1 year) gains. I think we have seen that there are far too many examples, where this does not work and you run the risk of losing everything. (Enron, Worldcom, the financial companies of late, etc)

Learn everything I can? That sounds too much like work. Why do you think ploppys play like they do rather than bother even with BS?

How about if you just tell me what to buy and when to sell.

How about software that analyzes these things and tells you what do do?