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
Erich Bloodaxe BSN
(14,733 posts)6chars
(3,967 posts)Right?
big_dog
(4,144 posts)anything in the sector, Iran is going to flood the market
6chars
(3,967 posts)stretch it to 5k miles instead of 3.
big_dog
(4,144 posts)i wanna see those prices crater!
big_dog
(4,144 posts)flood baby flood that market! get those gas prices WAY below $2
AZ Mike
(468 posts)....Josh Duggar going to pornography rehab.
-Pat Robertson
Javaman
(62,439 posts)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.
Enrique
(27,461 posts)and it's not any of us.
Adrahil
(13,340 posts)It works.
bucolic_frolic
(42,666 posts)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.
Dont call me Shirley
(10,998 posts)thebighobgoblin
(179 posts)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)... I shared it with my close relatives(heavily invested in their retirement accounts) and best buddies. I hope they pass it around.
wolfie001
(2,131 posts)PatrynXX
(5,668 posts)oh but I'm not running for office.
GliderGuider
(21,088 posts)Or something.
progree
(10,864 posts)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.