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Evidently chop and slop can be in 100 point increments …

Wow – what a chopfest. … which I have heard is the sign of a bottom. I could really see and feel the fight for value – with about equal players on both sides. Hard NOT to get aggravated in that and even harder to apply the “well if it can’t go down, it must be going up” idea. …. although that did work finally in the last 10 minutes of the cash markets.

Now we know what a range bound day looks like in this market. THAT is something to think about.

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This entry was posted on Friday, October 24th, 2008 at 4:32 pm and is filed under Markets. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.

2 Responses to “Evidently chop and slop can be in 100 point increments …”

  1. DKS says:
    October 26, 2008 at 9:51 am

    Armin – in thinking about it I am not sure I agree with Jason Zweig – i think back to 2002 and there was clearly a day in October that was a capitulation day. … I can remember the same in 1998..

    Not that MY memory is the arbiter of the definition of capit – but… huge push to downside on huge volume, trade lower close higher… those seem to define it in my mind.

  2. Armin Stuk says:
    October 25, 2008 at 11:36 am

    I could really see and feel the fight for value – with about equal players on both sides.
    ——————————————————————————–
    In fact, what’s missing out there is most probably a stupefaction too ,as bear markets often end not in capitulation but stupefaction. I agrre also with this:
    Market lows aren’t necessarily marked by tidal waves of frantic selling; just as frequently, stocks bottom out in a dull and lonely atmosphere as trading dries up and most investors no longer even care.
    source: THE INTELLIGENT INVESTOROCTOBER 25, 2008
    Capitulation: When the Market Throws in the Towel
    http://online.wsj.com/article/SB122488709542968173.html