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brooklynite

(93,851 posts)
Wed Aug 26, 2015, 04:45 PM Aug 2015

Dow zooms up 619 points, 3rd biggest gain ever

Source: CNN

Greed made a comeback on Wall Street. The Dow raced 619 points higher on Wednesday, its most emphatic point gain since the 2008 financial crisis.

The huge rally represents a rebound following six days of dramatic selling that was driven by serious concerns about how China's slowing economy will impact the rest of the world.

The S&P 500 soared 3.9% on Wednesday, its biggest one-day percentage gain since 2011. The Nasdaq surged 4.2% higher. The Dow's point gain was the third largest in its history.

"We were sorely in need of a pop after the drop," said Sam Stovall, chief investment strategist at S&P Capital IQ.

Read more: http://money.cnn.com/2015/08/26/investing/stocks-markets-china-selloff/index.html

19 replies = new reply since forum marked as read
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Dow zooms up 619 points, 3rd biggest gain ever (Original Post) brooklynite Aug 2015 OP
The 'sucker rally'. nt Erich Bloodaxe BSN Aug 2015 #1
Buy, buy buy!!! 6chars Aug 2015 #2
dont buy any oil or energy stocks soon! big_dog Aug 2015 #6
I might hold off on visiting Jiffy Lube 6chars Aug 2015 #7
dont buy gas until after Labor day or later big_dog Aug 2015 #11
oil's going to $30 or below soon, i love it big_dog Aug 2015 #3
God's reward for.... AZ Mike Aug 2015 #4
Ride My See-Saw Javaman Aug 2015 #5
i suspect someone's getting rich off whatever is happening Enrique Aug 2015 #8
Dollar cost averaging. Adrahil Aug 2015 #18
Markets fool people bucolic_frolic Aug 2015 #9
A quickie buyback low, sell high. Dont call me Shirley Aug 2015 #10
Completely predictable thebighobgoblin Aug 2015 #12
Excellent points... IthinkThereforeIAM Aug 2015 #13
So are you posting from a well-stocked bunker? wolfie001 Aug 2015 #15
Just don't tell panic attack (I have them) Trump PatrynXX Aug 2015 #14
The invisible hand of the market lifts all boats. GliderGuider Aug 2015 #16
To the long-term investor, it is just noise. It may cause me to have to rebalance at the end progree Aug 2015 #17
Yup. nt Adrahil Aug 2015 #19
 

big_dog

(4,144 posts)
6. dont buy any oil or energy stocks soon!
Wed Aug 26, 2015, 04:56 PM
Aug 2015

anything in the sector, Iran is going to flood the market

 

big_dog

(4,144 posts)
3. oil's going to $30 or below soon, i love it
Wed Aug 26, 2015, 04:48 PM
Aug 2015

flood baby flood that market! get those gas prices WAY below $2

Javaman

(62,439 posts)
5. Ride My See-Saw
Wed Aug 26, 2015, 04:53 PM
Aug 2015

Ride My See-Saw
Song by The Moody Blues



Ride, ride my see-saw,
Take this place
On this trip
Just for me.

Ride, take a free ride,
Take my place
Have my seat
It's for free.

I worked like a slave for years,
Sweat so hard just to end my fears.
Not to end my life a poor man,
But by now, I know I should have run.

Run, run my last race,
Take my place
Have this number
Of mine.

Run, run like a fire,
Don't you run in
In the lanes
Run for time.

Left school with a first class pass,
Started work but as second class.
School taught one and one is two.
But right now, that answer just ain't true.

Ah ah ah ah, ah ah ah ah, ah ah ah ah ah
Ah ah ah ah, ah ah ah ah, ah ah ah ah ah

My world is spinning around,
Everything is lost that I found.
People run, come ride with me,
Let's find another place that's free.

bucolic_frolic

(42,666 posts)
9. Markets fool people
Wed Aug 26, 2015, 05:06 PM
Aug 2015

As soon as everyone is convinced it's going down, they have to make it go up
so they can make their money.

Being in or out of sync with market logic is the key to profitability.

Few master it, it fools most.

 

thebighobgoblin

(179 posts)
12. Completely predictable
Wed Aug 26, 2015, 05:14 PM
Aug 2015

Algorithmic trading is what leads to major buying and selling runs such as what we've seen the last few days. The market started catching wind of global market volatility and started using those inputs to encourage a selloff. Then the market had some buyers on the cheap, and the algorithm figured that things were so bad after all, which probably encouraged more buying. Things will be stable in the market -- for now.

Problem is, we're already starting to roll toward our next financial cliff, and that drop is going to be much deeper and the crash landing much more painful. About four banks control something like 70 percent of all accounts in this country. The last financial crisis resembled a more extreme version of 1987; the next one will look more like 1929 or 1907. The Treasury won't be able to stop the collapse and the Fed won't have any way to help us pick up the pieces.

IthinkThereforeIAM

(3,072 posts)
13. Excellent points...
Wed Aug 26, 2015, 06:11 PM
Aug 2015

... I shared it with my close relatives(heavily invested in their retirement accounts) and best buddies. I hope they pass it around.

progree

(10,864 posts)
17. To the long-term investor, it is just noise. It may cause me to have to rebalance at the end
Wed Aug 26, 2015, 08:54 PM
Aug 2015

Last edited Wed Aug 26, 2015, 11:58 PM - Edit history (1)

of the year. Otherwise, I don't give a hoot what it does tomorrow or next month.

To the long term investor, the stock market makes new all-time highs every so often, and never makes new all-time lows.

The long-term investor NEVER SELLS on the dips. Au contraire, one is supposed to BUY on the dips. (I don't do that either, though, although yearly portfolio rebalancing and dollar cost averaging has that effect to some extent).

Long-term investors generally don't try to time the market. Even full-time professonals don't do well at that. Rather, dollar cost averaging and rebalancing to maintain a pre-determined balance between stocks and fixed-income investments provides a significant measure of buy low / sell high, according to innumerable studies (see AAII Journal published by the American Association of Individual Investors).

Anyway, right at the moment (after Wednesday's close), the S&P 500 is down 8.9% from its all-time peak of 2131 reached on May 21. That's not even a correction (which occurs between a 10% and 20% loss).

There have been 25 market corrections or worse in the 50 years ending December 2014. Despite all the teeth-gnashing, crises, impending crises, and conspiracy theories, stocks have somehow managed to do considerably better than bonds over that period.

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