Here's just some questions floating around in my head, I don't necessarily have the answers..but i've put some of mine brief one's below.
If there is so much panic and fear, why are the biggest moves upward and not down?
- up 54 spx points today, similar 5 days ago's - the largest down day in this 'panic' was a mere 30pts 3days ago.
My answer - fear of missing a major low is greater than fear of another major leg down + fear of financial matrix of meltdown means all efforts being made to avoid another leg down, those efforts are historically unprecented, that might be being kind about them .
Why do the monster up days surge into the close in total mega rally mode, but the down days during the 'panic' see buying and closes way off the lows ?
My answer - same reason, in any major low i've seen there's always a total washout close near the low during a 'panic'
The previous FED actions produced a monster rally that eventually failed, why will this one be any different?
My answer - it won't, but that doesn't say we can't rally for another week or two and retrace a fair bit.
Is the market in a better technical condition today than at previous lows that saw failed rallies? check your NYSI, BP's etc
My answer - worse
Is shorting or going long the easier trade at the close today? ..check tonights TT poll for an answer to that one.
My answer - 50/50
Is this market comparable to any from the past? 2000-2001? 1998? 1990-1991? 1987? 1982? 1974? 1970? ...or 1937 or 1929? ...and why?
My answer - not 1998, 1990-1991, 1987, 1982 ....nearer 1970, 74, 2000-2001 and 1930's...but it isn't going to be eactly like any of them....why? interest rate behaviour, severity of decline is end of Primary wave 3 from 1937 i.e. 1 order of magnitude greater than 2000-2002....but will be monster rallies just as that did.
Thought of one or two more -
What kind of economy has these kinds of problems, and requires this amount of panic intervention?
My answer - I'll use a metaphor I gave long time ago on FF board, an 'Enron economy', perhaps I need to update that to the Bear Stearns.
Can you invent enough money to restore an Enron economy?
My answer - what do you think has been going on the last 10 years