The DOW nearly had a 1000 swing in the last 30 minutes of trading, as a 697 point decline turned into a 300 point gain. All together, the DOW swung between gains and losses 16 times during the last frenzied minutes of trading however, major indexes closed lower on the day.
Stocks Whipsaw Towards The End
The DOW nearly had a 1000 swing in the last 30 minutes of trading, as a 697 point decline turned into a 300 point gain. All together, the DOW swung between gains and losses 16 times during the last frenzied minutes of trading however, major indexes closed lower on the day.
"The market didn't have a true one day crash, which is typically defined as a 10% loss, as it did in 1929 and 1987," said Matthew Carniol, chief currency strategist at TheLFB-forex.com. "However, this week's decline was greater than the total loss during the weeks in which those big one-day declines occurred." All told, the S%P 500 had its worst week since 1933.
Markets rose briefly after an industry group said the settlement in Lehman Brothers' credit default swaps wouldn't worsen credit losses. Also helping the sentiment was an article in the Wall Street Journal which said U.S. officials are considering the U.K.'s plan to backstop bank debt. The article went on to say that the G7 will discuss the plan this weekend, which led traders to speculate that finance ministers may consider using the idea in a coordinated effort.
At the close of floor trading on the NYSE, the DOW was on 8451.19 after losing 128.00 points (-1.49%). The S&P closed on 899.22, down 10.70 points (-1.18%) while the NASDAQ finished the day's trading on 1649.51 with a gain of 4.39 points (0.27%). Treasuries were sold as investors speculated supply would increase. Yield on the ten-year note rose 9.5 basis points to 3.874% while the two-year note's yield rose 11.6 basis points to 1.642%. The dollar strengthened, gaining 1.46% on the euro, 0.78% on the yen and 0.35% on the pound.
Crude oil for December delivery finished trading down $6.20 (-7.15%) to $80.40 per barrel as traders continued to speculate that slowing economic growth would crimp demand.
Gold for November delivery declined $37.50 (-4.25%) to $845.60 per ounce on profit taking.
Written by TheLFB Trade Team, © 2007-2008 LFB Services, LLC. All rights reserved. http://www.TheLFB-Forex.com
TheLFB Risk Disclaimer can be found at http://www.thelfb-forex.com/content.aspx?id=174.
The Copying, Broadcast, Republication or Redistribution of TheLFB Content is Expressly Prohibited Without the Prior Written Consent of LFB Services, LLC.
|
