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Big Down Day Followed By Even Bigger Up Day

TedTed
edited October 2014 in Fund Discussions
FYI: The S&P 500 fell 1.51% yesterday, but it followed up that big loss with a gain of 1.75% today. Over the two-day period, the S&P is up about 4 points.
Big down days followed by even bigger up days have been rare during the current bull market that began on March 9th, 2009. In fact, situations like the last two days where the S&P fell more than 1.5% only to rally back even more the next day have only occurred six other times, and we highlight them in the table below.
Regards,
Ted
http://www.bespokeinvest.com/thinkbig/2014/10/8/big-down-day-followed-by-even-bigger-up-day.html?printerFriendly=true

Comments

  • CharlesCharles
    edited October 2014
    Rare indeed.

    Nice for a change.

    Trust 3Q earnings will help stabilize SP500, if not keep it going up.

    If AA is indicative, should be good season.
  • heezsafe
    Headline key words trigger The Algos. Meanwhile, carbon-based fixed income traders say, "nah, I don't think so" and stay put.

    @Charles Share buybacks are spent out, and balance sheet tricks work until they don't. From what little I've read that has leaked out, the whisperers are not optimistic re. 3Q margins and SP500 stabilization. In some sectors, the analysts appear to be brake-tapping. Throw in an end to QE (or will they?), and IMO "we have a sit-u-a-tion" approaching.
  • hank
    edited October 2014
    Should now read: "Big Down Day Followed By Even Bigger Up Day Followed By Even Bigger Down Day!"
  • VintageFreakVintageFreak
    bigger up days necessary to compensate for smaller down days. Compounding works in reverse. 10% drop requires 11% to compensate for it.

    I wouldn't get worked up about this one way or the other. There is absolutely no reason to put new money to work unless market stops making lower lows.

    I mean who wants to get castigated for owning fund with bad performance number YTD, right?
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