Daily Investment Interpretations
October 20, 2008
A day of pullbacks. The NASDAQ plunged 73.35 (4.14%) to 1,696.68, The Dow
dropped 231.77 (2.5%) to 9,033.66, and the S&P plummeted 30.35 points
(3.08%) to 955.05. The VIX rose slightly to 53.11. Bad earnings reports and
downbeat news about the economy are blamed for the decline. For example, higher
insurance rates are forecast. Crude oil closed at $70.89 a barrel, and gold gave
up $22 an ounce to end the day at $768 an ounce.
Michael Ashbaugh has published a well-received article: Michael Ashbaugh's checklist for a market recovery. He concludes that it's definitely too early to break out the champagne just yet, and enunciates the changes that would have to occur in order to herald a bear market bottom. Mark Hulbert also has an interesting article: VLMAP offering directions to wealth? Also from mark Hulbert tonight: The difference between panic and capitulation. Mr. Hulbert concludes that the recent panic and stratospheric VIX readings didn't signal the capitulation and total disavowal of stock investments that occurs at a major market bottom. The major market bottom is yet to come.