Biggest Day for the Dow Since the 1930s
I really hope (hope is not a course of action, but a traders pacifier) this is a bottom, and we can see this market and the U.S. economy recover. I know there will be a new Bull Market, and I intend to follow things closely. However please consider the following, and most importantly- MAKE COMMENTS!
- biggest move since the thirties sounds more like a warning than a battle cry.
- gold sold off and money moved into equities
- the capital markets were closed
- Volume was not much higher than average
- Today is already manifesting a small sell off
- There are no stock (of any import) that are hitting 52 weeks high
- the VIX (fear index) is still VERY HIGH
- The election looms near, and promises very little in the way of real solutions no matter the outcome.
- U.S public debt (outside of SS trust fund) looms at 12 trillion and increasing by the second.
I know I am going to take some heat for this post, but its true... WE ARE ALL responsible for our own well being. we should be students of the past and live within our means, but with the exception of my Father, I know very few "Boomers" who are not looking at working until they are 70 because they thought the good times would never end, and have a bleak decade in front of them (based on what the present is forecasting)
I pray for the best for all.
DD
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11 comments:
There's nothing wrong with hoping it's a bottom, as long as you trade like it's not. We're not out of the woods just yet. Seeing some selling after an 11% up day shouldn't be too unexpected, but I don't think it signifies much yet. I think what's going to become important is what this rally consolidates into. Do we retest lows back in the high 7000s when more bad news comes out, which it will? Maybe we see the potential for a double bottom. Do we see the sellers only push back down somewhere around 8500 to 9000? Maybe that creates the higher low action necessary for a short-term up trend. My bet is to look for some type of triangle, or coiling price action. Then we have to wait for the break out to know what direction we're headed next. In the meantime, keep you heat low and your stops tight, as the major whipsaws are likely to stay around for a while.
nice
Interesting stuff, always good to look at what the past has shown us and what it can tell us about the future..
There is no question in my mind that the parents of the baby boomers (my grandparents) taught thrift, frugality and hard-asset saving. You have an excellent point. For a while there I was beginning to pity the baby boomers, but I don't anymore - at least, not nearly as much...
no doubt it is a scary thing to hear so many near retirees not choosing to but must continue to work. My father- in law is one of those you speak of who did heed his parents warnings and has learned from what they went through in the 30's His dad was a farmer in south Dakota and his mother was a school teacher. He still lives today as if it was the 30's. At some point in time my wife will be the beneficiary of all his scrimping and saving and I hope that we will have learned enough from him to do as well as he has done. Now I must say though that I think there can be an extreme on both sides. Obviously we see and hear all about those who spend and spend but with my father-in law I have also seen some pitfalls of not being too much of a hoarder. He recently remodeled his house after basically not doing anything to it for 25 years. It cost well over 100k because there had been so much neglect for a long period of time it might have cost him half that much if he had done a little here and there. Lastly I will always remember how my mom talked about robbing peter to pay Paul. And give it to my father in law he did buy 10k worth of the S&P last Friday
Ballard makes a good point, but at lease Pappy in law had the 10 K to invest, and based on what you are saying; I am sure his purchase was a small one when compared to his net worth.
ACE OF TRADES also brings it to a point worth real consideration... Let the market tell you what to do... There has, and always will be a bullish bias in the stock market. We need to stay on top of what is happening and not what we "think or feel"
Well not much to say tonight after my Cougars got beat up like Damon in the dojo! But at least now we can hope Utah goes undefeated and we get to beat their ass and keep them out of the BCS. As for the market Damon you're right father-in law is a buy and hold guy and the 10k is a small portion of his value. He has taught me some great lessons. Mentorship is a great thing. So many great things we can learn from those who have gone before us.
COME ON BABY BOOMERS LET’S HEAR YOUR STORY.
I AM ONE, 1942 TO BE EXACT. YES DAMON YOU ARE RIGHT US BOOMERS DID GROW UP IN THE BEST OF TIMES, WE HAD PARENTS THAT SURVIVED THE GREAT DEPRESSION OF THE THIRTIES, AND A GOOD THING FOR US THEY PASSED ON TO THEIR CHILDREN MANY LESSONS THAT WOULD BE OF VALUE IN OUR FUTURES.
MOST OF THE COUNTRY PROSPERED AFTER THE WAR BUT NOT EVERY WHERE. I THINK I WAS LUCKY THAT PROSPERITY WAS SLOW TO COME TO THE AREA OF THE COUNTRY I WAS RAISED IN. IT GAVE ME THE CHANCE TO HAVE INSTILLED IN MY YOUNG MIND SOME LESSONS AND VALUES THAT I TRY TO LIVE BY TODAY. I WILL ATTEMPT TO GIVE YOU SOME EXAMPLES IN A SHORT STORY.
HAVE YOU EVER EATEN A FRIED POTATO SANDWICH ? I HAVE!
I HAVE EATEN MANY SANDWICH ‘S THAT HAD NO MORE THAN A LITTLE MAYO, A 1/4 INCH SLICE OF FRIED POTATO, SALT AND PEPPER ON HOME MADE BREAD. WHAT A TREAT SO I WAS TOLD. SO IT WAS. MY MOTHER AND FATHER HAD A WAY OF MAKING THEIR CHILDREN HAPPY. THIS ONE EXAMPLE OF HOW THEY TAUGHT US TO APPRECIATE WHAT WE HAD , SOME TIMES IT WASN’T MUCH BUT THERE WASN’T ANY MOANING OR GROANING.
MY FATHER WAS VERY CHARITABLE AND HONEST TO THE POINT THAT I SOMETIMES FELT HE CARED MORE FOR MY COUSINS THAN HE DID FOR ME HE COULDN’T STAND TO SEE ANYONE GO WITHOUT. WHEN THEY FIRST GOT TV IN THE COUNTY WE NEVER BECAUSE WE WERE NOT IN LINE WITH THE REPEATER SO WE DIDN’T GET IT IN OUR LITTLE TOWN. A MAN PUT IN A CABLE SYSTEM BUT MY DAD REFUSED TO SUBSCRIBE . WHEN SOMEBODY FOUND OUT THAT BY PLACING A SET OF RABBIT EARS CLOSE TO HIS CABLE YOU COULD ROB HIS SIGNAL. BUT NOT MY DAD HE JUST SAID WAIT. THE TOWNS PEOPLE POOLED THEIR MONEY AND BOUGHT THE MATERIAL TO MAKE THEIR OWN CABLE SYSTEM. I CARRIED PIPE AND CEMENT TO INSTALL THE LINE DOWN THE MOUNTAIN. NOW WE HAD OUR OWN SYSTEM WHAT A GOOD FEELING. NOW MY DAD COULD WATCH THE DODGERS PLAY. AFTER ABOUT SIX MONTHS THE COUNTY PUT IN A REPEATER SO WE HAD TV FOR FREE. LIKE MY DAD SAID “WAIT.”
AFTER I MARRIED AND MOVED OUT OF THE STATE SEEKING A BETTER JOB I WAS WORKING FOR A BRICK LAYER. WE DIDN’T HAVE MUCH BUT WE GOT BY. I REMEMBER COMING HOME AFTER A HARD DAY OF CARRYING HOD TO FIND THAT MY YOUNG BRIDE HAD SUPPER READY. A PEACH PIE THAT ALL SHE HAD BUT SHE MADE DO WITH WHAT WE HAD. THAT WAS THE MOMENT THAT I REALIZED THAT WHEN MOM MADE US THINK WE WERE GETTING A REAL TREAT.
A FRIED POTATO SANDWICH SO IN CLOSING REMEMBER:
BE HAPPY WITH WHAT YOU HAVE
THERE IS NO NEED FOR GREED
TRY TO IMPROVE WHAT YOU CAN
BE HONEST IN EVERY ASPECT OF YOUR LIFE
GOOD HARD WORK HAS REWARDS
NOW IS THE TIME FOR DOING NOT THINKING.
IF THE LEADERS OF THIS GREAT COUNTRY’S GOVERNMENT; ON EVERY LEVEL, THE LAW MAKERS AND THE CEO’S OF GIANT CORPORATIONS COULD USE THESE FEW COMMON SENSE VALUES US BABY BOOMERS TO GO TO OUR GRAVES SINGING “ALL IS WELL”
PS, I THINK I WILL HAVE A FRIED POTATO SANDWICH FOR SUPPER.
Thanks Dad. There is more to the story that you forgot to mention... After Mom made the peach pie, the 2 of you made a vow that your cupboards would never be empty. You taught me a lot growing up, but the most valuable lesson was as you have said here. Do everything with a little slice of love.
The love of our countrymen and women is the missing factor in all this financial mess...
Patience and Sacrifice are virtues we must re learn as a people.
Hey Damon! Thanks for commenting on my blog. It's nice to have another reader. Have I met you at the gym before? Will you be there tonight? I hope so.
I really enjoy your blog. I don't understand much about money and investments but since it has been such a big issue lately I've started paying attention a bit more. I wish that I would have been taught better. Never too late to learn.
V-
Likewise, bloggers have to help each other out. We have not met. I just joined Absolute MMA a couple of weeks ago... Rob and I worked together briefly back at Fidelity Investments.
I won't be in the gym tonight, as I have already been smashed this morning by Robs Kettle Bell workout followed by BJJ. Although the BJJ with Cam is mostly me being confused as hell. That won't last forever.
If you need help with your investing/saving I would be happy to answer any questions in upcoming posts.
Good luck tonight.
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