Phantasmix Stock Market Blog

Nothing can convince me that 11% in a day (in either direction) shows a healthy stock market. By the way, here are the top 20 biggest one-day percentage gains in the history of the DOW.

17 of 20 were during the Great Depression. Of course, feel free to

1 03/15/1933 15.34
2 10/06/1931 14.87
3 10/30/1929 12.34
4 09/21/1932 11.36
5 10/13/2008 11.08
6 10/28/2008 10.88
7 10/21/1987 10.15
8 08/03/1932 9.52
9 02/11/1932 9.47
10 11/14/1929 9.36
11 12/18/1931 9.35
12 02/13/1932 9.19
13 05/06/1932 9.08
14 04/19/1933 9.03
15 10/08/1931 8.70
16 06/10/1932 7.99
17 09/05/1939 7.26
18 06/03/1931 7.12
19 01/06/1932 7.12
20 10/14/1932 6.83

I don’t know if this has any practical meaning since DJIA composition changes all the time, but nonetheless, here it is:

Inflation-Adjusted Chart of the Dow

Source: Chart of the Day

…the magnitude of the bull market of 1982 to 1999 (even when adjusted for inflation) was truly of historic proportions. It is also interesting to note that the magnitude of the current bear market (when adjusted for inflation) is greater than what occurred during the dot-com bust of 1999 to 2003. As a result, the Dow currently trades at 12-year lows.

Source: Pumpkin Way

I’ve been trolling some forums, here’s a few posts that caught my eye…

I will promulgate my theory once again:

The PPT is going to attempt to institute an orderly crash by having the majority of the downward moves happen outside of normal trading hours.

Every day looks (on the whole) pretty flat. Every night, all hell breaks loose. This will screw the maximum number of speculators, and bring about SPX 750 in a nice, orderly stair-stepped fashion.

A BAGHOLDERS OPINION!!!
LISTEN UP……I don’t see candlesticks, line charts, pie graphs, photographs, formulas, a Fed release, level twos, level threes, we’ll all be screwed; trend curves, down curves, load um up, sell um down, buckle up, for the crash, to hell with you, I’ll stay in CASH!!!!

Today’s market action is classic bear rally flow.

Back during the tech crash, stocks were pumped intraday and then dumped at the close.

The pattern was very consistent then as now, becoming obvious to many.

Substantially fewer investors feel safe holding stocks overnight, especially when Godzilla is on the loose!