Sunday, November 8, 2009, 8:10PM ET - U.S. Markets Closed.
Coming off the best 5-day rally since the 1930s, stocks struggled Monday morning as traders returned from the holiday weekend in a selling mood.
In recent trading, the major averages were each down more than 4%, with the Dow down 374 points to 8,454.
Although weekend retail sales were better than feared, Monday morning brought more grim economic news: the ISM's manufacturing index fell to a 26-year low in November and October construction spending fell by a larger-than-expected amount in October.
There's a host of data on the docket for later this week, including Friday's employment report, but there wasn't a particular catalyst to the early sell-off other than a pervasive disbelief in the rally which preceded it.
For the five trading days from Nov. 21 through Nov. 29, the Dow gained 16.9%, the S&P 500 jumped 19.1% and the Nasdaq rallied 16.7%.
The rally marked the first time the Dow and the S&P rose for five consecutive sessions since July 2007, and was the biggest five-day percentage since August 1932 for the Dow and March 1933 for the S&P, according to the Associated Press.
As if comparisons to the early 1930s weren't troubling enough, the S&P's decline since October 2007 is starting to mimic some of the worst declines in financial market history, according to blogger Doug Short.
Bears RULE---Paulson----get out of the way you PUKSTER!
If you didn't see this selloff coming after thanksgiving break, you ain't too bright.
Whatever happen soon it will settle to go up.......There is point to go down beyond today low.....It is too low to do shorting because it is the botton allready last October 28, 2008 at 8200 and it settle there....The common option is the way u to Chistmas rally.......What happening now is a yoyo situation.....BAD FACTOR WAS IN ALLREADY.....SO IT WILL BE NO POINT THE MARKET WILL GO DOWN IN ANYMORE THE 1200 RANGE EITHER WAY......BUT THERE IS NO POINT TO GO SHORT WHEN THE PRICE IS IN THE BOTTOM OTHERWISE THEY WILL HIT A POINTED ROCK........A RALLY IS UNAVOIDABLE.....
The 5 day rally was just for end of month window dressing for various funds. Go to show how manipulated the market is.
Thanks to the great Fed inflation fighters, inflation is dead, so is economy.
Just wait for all the other shoes to drop... you will be able to hear the bear stampede in New York all the way from LA... ha ha
Mainly people are just cashing off from gains late last week.
thanksgiving was nice. back to the real world.
Shows good sense... Short Term thinking rules in this market.. whoever bought into this rally should be taking profits and dumping now ... and anybody not in cash at the beginning of a long holiday weekend is nuts in my mind.. the world is too unstable for that..
I can't wait until hokers are going for $20 a lay... then we can get Johnny Ike laid!
Don't worry be happy. The Fed and the US Govt is going to mke it all better.
New lows in at least NASDAQ to be seen by end of day, next Friday, 12/12. I said just after the 11/21/08 lows that it wasn't the major low then. What do I know? I said that the major low wasn't seen yet after the 10/10 and approx. 10/27 lows, and also NASDAQ's 11/13 low. Show me anyone else who said that and within 2 days of each of the lows. I also went against the so-called "pros" as well.
now we get the countdown to christmas.
So, this is what we're left with: hoping and praying that armies of debt zombies keep shopping? Right, great, sure! I guess it would be too much to ask for any real investment to take place in this economy.
To predict the future, just look at the Nik chart from their highs to today. It's turning Japanese, except worse, because the Japanese had savings to get them through their mess. And they have yet to recover. Sell the peaks.
What's wrong with short selling? Shorting makes pretty good sense in this market. today.. who knows about tomorrow? Naked shorting is another matter.....
Don't worry after drop[ping another couple hundred points it will come back 1/2 way and then drop again to eventually settle in the Dow 3500 range at this point I will issue a buy rec to all my peeps
"Turkey for me. Turkey for you. I like turkey in a big brown shoe."
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Whit Chambers - Monday December 01, 2008 10:54AM EST
Merry Christmas early.