Market Close Comment 10th October 2008
With this morning’s crash and opening scare from US markets, we’ve moved far away from this being just a ‘bear market’. We are now witnessing the great crash of 2008. Certainly, there have been bigger one day falls in percentage terms, but the scale and unyielding nature of the sell off of is unique. You just have to take your eyes off a market like the Dow Jones for a second and it will have moved 100 points in either direction. This level of volatility is almost unheard of. For days markets have continued to show signs of complete surrender, days that in the past may have become capitulation low points, yet the sell off has still continued. Many are looking for the bounce that has often followed such waterfall sell offs, but so far being early has been very, very wrong.
US markets opened with a jolt as early bird traders reached for the panic button after seeing the carnage wreaked on European markets. The Dow reached 8000 for the first time since April 2003, a time that many point to as the start of the now dead 4 year bull market. There is hope however, with the Dow bouncing viciously off the 8000 level. The buyers will no doubt be hoping to have finally caught the capitulation low and will be crossing their fingers that this time they are not too early. World leaders would be forgiven for doing the same.
Dave Evans is a market analyst for BetonMarkets, the financial fixed odds betting firm. We do not endorse the information and analysis available in this comment and it is provided purely for information purposes only and is delivered as a personal view by the writer. Under no circumstances is the information in this comment to be used or considered as an offer to sell, or a solicitation of any offer to buy. While all reasonable care has been taken to ensure that the information contained herein is not untrue or misleading at the time of publication, we make no representation as to its accuracy or completeness and it should not be relied upon as such. The investments referred to herein may not be suitable investments for all persons accessing this page. You should carefully consider whether all or any of these are suitable investments for you and if in any doubt consult an independent adviser. We accept no liability whatsoever for any direct or consequential loss arising from use of the information on this web page. Please see our Terms and Conditions.
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