After irrational rally, DOW back down below 10,000.

The Dow is a near perfect measure of irrationality. It's more emotionally driven than driven by any other factors, IMO.
 
redrumloa said:
The market looks poised to fall off a cliff.
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Don't worry. The government just voted themselves a bunch more money and between them and the Fed I'm sure they'll buy it up.
 
or ... maybe not. Still down and falling - wonder what it'll close at and if we'll see an end of day buying spree.
 
FluffyMcDeath said:
or ... maybe not. Still down and falling - wonder what it'll close at and if we'll see an end of day buying spree.
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The PPT (Plunge Protection Team) can't step in and continue to buy forever to stabalize the markets. I wouldn't be surprised if the bounce wasn't helped long enough for firms like Goldman Sachs to place new short positions and buy massive puts. It has already been clearly demonstrated that our government is only looking out for their friends in the biggest banks & financial firms, manly GS.
 
Following the stocks is really not my bag, but looking at the charts I can only imagine this will be a dip similar to what we saw in July 2009. Although too early to be meaningful, the DOW is currently a few pennies over 10K. *shrug*
 
Glaucus said:
the DOW is currently a few pennies over 10K. *shrug*
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Fluffy initially predicted the Plunge Protection Team would step in and it appears they did.
 
A late afternoon rally brings the Dow back up to close the week over 10k. Barely. 10,012.23 Feb 5 close.

Still, now everyone can go relax for the weekend. Good old American Capitalism triumphs again. Will everyone have forgotten the terrible job numbers and the hectic Friday by the time the markets open on Monday?

What fun! :)
 
FluffyMcDeath said:
Still, now everyone can go relax for the weekend. Good old American Capitalism triumphs again. Will everyone have forgotten the terrible job numbers and the hectic Friday by the time the markets open on Monday?
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Unemployment is now under 10%. Things aren't great by any strech. But, things seems to be getting a bit better.

In related news the newest Senator Brown stated the Stimulus Bill created 0 jobs. Of course according to the White House there's 600K created and 2M protected. Independent analysts are projecting an impact of about 4M total jobs grown and or protected once the money is all spent. 0 Jobs? Nice to see the Republicans have a new liar.
 
You'd think it would have at least created a few government jobs required to distribute the stimulus money itself. Saying something that is obviously false is pretty stupid.
 
faethor said:
Unemployment is now under 10%.
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That's right. 20,000 Americans lost their jobs thus bringing unemployment down.
That 10% is an imaginary number. You've heard of the birth/death model, right? I remember my brother telling me about this many years ago. It's been used for a long time and the modelers like it because it's mostly right during fairly normal (slow changing) times. It's a helpful rule of thumb that says that, in general, a new job is created for every job lost. In fact, it's pretty much the definition of equilibrium so when the economy is close to equilibrium it works pretty well. However, if a fundamental part of your model is the assumption that you are at equilibrium then it is going to fall apart pretty badly when things are actually changing.
Jobs haven't been created as fast as they've been destroyed and there are far more unemployed than the model suggests. Furthermore, anyone who has given up looking for work or has become homeless and fallen out of the system is no longer "unemployed" because they aren't part of the labour market.
But, things seems to be getting a bit better.
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House prices continue to fall. There is still a huge overhang of bad mortgages left to reset and recast. Retail malls are collapsing and many of them still carry huge commercial mortgages and it's hard to pay those off when your mall has no tenants. Debt is still growing but credit isn't flowing and companies aren't hiring or growing (except in their off shore hiring).
Independent analysts are projecting an impact of about 4M total jobs grown and or protected once the money is all spent.
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It's possible. But real unemployment is still over 20% so it's a good thing that a few million jobs got saved else the cities would already be burning. Of course, the economy needs to contract a little bit more before the military is able to satisfy its manpower needs.
 
Glaucus said:
You'd think it would have at least created a few government jobs required to distribute the stimulus money itself. Saying something that is obviously false is pretty stupid.
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but typical and expected
 
Where I work (ARM) is doing quite well at the moment, the share price sat around a £1 for all of 2008 then it's been going steadily up for nearly a year now, next few weeks should be an interesting as we're going into the FTSE 100 on Monday.
 
Monday's Dow is chugging along around the 10k line. Held there as if by magic (it's a very psychologically significant number).

Here's an inflation adjusted Dow. Even if the numbers don't fall, it's falling in real value.

dowjones.jpg
 
Aw. Poor Dow. Made it halfway through the day then it fell over. Closed at 9,908.39 - off 1.04% for the day.
 
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