Why Did the Dow Jump 900 Points Today?

| October 28, 2008

Who knows, it may tank again tomorrow but it is a good question to ponder. I have been an active trader for quite some time so I know that sometimes fairly small things can impact the Dow. Consumer confidence is at an all-time low but the spike happened anyway.

There a few very credible possibilities in this case:

a. The Fed is going to announce a rate cut tomorrow.
b. New home sales went up and some may be hoping that the bottom has been found.
c. Gas prices are plummeting and it’s affecting every industry.
d. The dollar is gaining strength pulling investment back home.

All of these have happened before and have affected the Dow every time…but never 900 frigging points!

What does Wall Street like better than lower taxes? Divided government.

Do these investors know something that we don’t? And the MSM polls aren’t telling us or at least suppressing deep in the internals?

If Obama is really up 10 points in Pennsylvania, why is McCain and Bill Clinton storming the state? Even if McCain is grasping, why would Obama use a weapon as powerful as Bill Clinton in Pennsylvania instead of much closer polling states like North Carolina (+1.5), Indiana (+1.3) or Missouri (+0.6)?

He’s using the most effective campaigner in recent history in a state with a 10 point lead that offers 21 electoral votes instead of three very close states that represent 37 electoral votes? Does this make sense to anyone?

The Biden selection has been a complete disaster and no thinking person in the Obama camp can defend his selection at this point. Yet, he is their primary voice in Florida and its 27 electoral votes?

Interesting times in deed.

Category: Politics

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Scrapiron

McCain is up in the polls so the people think they might win and be allowed to keep part of their money. When Hussein O is up the market drops because people know his Marxist style government will destroy them financially. Facts are facts.

richard wheeler

Cob You won’t post this but here is what you already know.Obama has only 1 state to defend Penn. up
9-11%.IF Penn goes Dem then Mac must win FLA-3,OHIO-4-6,VIRGINIA-6,COLORADO-5,MISSOU.-2,GA.-2,IND.-1.Impossible?Vegas odds are 8.5 to 1. for Barack.He’s running out the clock on a certain victory.Bigger fear for Repubs. are massive losses looming in House and Senate.Best RW.We can talk the market at another time but your 4 points are correct along with short covering and a short term massively oversold mkt.