This is a statistical look at how the Dow 30 components performed from the recession in 2007 to the end of 2009.
Financial Markets
If my chart reading skills are correct, the markets are going to look very good for investors over the next few weeks. There is an opportunity for it to scream very hard upwards. The catalyst? Better than expected results in the Fed's stress test. No bear would want to take on the Fed if that is the case.
I'm expecting a pullback starting Friday in the US stock market. After a 14 day run that saw the S&P 500 futures (ES) contract go from 665 to 830, there is some selling due. Buy the next volatile shakeout and do not chase going up.
The economic recovery maybe making its stand right here. Wall Street roared higher in a stellar week that saw the major indexes climb 10%. The Dow Industrial Average bounced off 6440 to close at 7224 on a wild 5 day swing. We got a long ways to go folks to return to Dow 10,000. Will we make it there this year?
Endless non-stop selling continues to sink financial markets lower in admist of one of the greatest bear markets in history. Since October 2007, the Dow Jones Industrial Average has sunk 54% off its highs. When will the selling stop? We take a look at each component's move to date and try to come up with a rationale level where we reverse course.
The Dow Jones Industrials jumped more than 150 points on speculation that China will undergo its own economic stimulus plan. Stocks such as heavy equipment maker Caterpillar and alunimum companies like Alcoa and Kaiser Alunimum led the charge.
On Monday, all major stock indexes fell over 3.5% to levels not seen since 1997. The Dow Jones Industrial Average fell 250 points to close at 7114. Nasdaq shaved 3.71% to 1387 and the S&P500 shed 3.47% to 743.
What follows is the result of some number crunching on my part of the Dow Jones Industrial Average between October 1928 and January 2009. I look at gaps, the frequency of gaps, average daily percentage return, and historical dates of significance.