On 29 September 2008 when the trading bell rung, it was like never before as Dow Jones Industrial Average Index made the ultimate history by falling within a single trading session by 777.68 or 6.98 percent which brings the DJI to the current 10,365.45. This is in consideration that market cannot short financial stocks. It is virtually a dumping of whatever they have which led to situation of panic selling sparked by the collapse of the 700 billion bailout plan.
Bus administration’s $700 billion rescue plan was utterly rejected by Congress in terms of house vote. This historic sell off was triggered seconds after the conclusion of bailout plan. It was a very hard and harsh landing that investors had to deal with. The faces of investors were tense as the news was being announced.
Wall Street, not like any other day had see DJI fell to its 3 years low. On the other side of the market, New York Mercantile Exchange, NYMEX, light sweet crude fell $10.52 to $96.36 which suggest that the demand will eventually fall as the economy stutter. Gold however was in the incline mood as investors flock towards the most precious metal in the hope to secure their assets.
It is needless to say how the Asian Markets will react to this closing of DJI as markets will definitely significantly within the red zone. The only question remains will be – By how much.
The above are of personal opinion and not at all an inducement to trade.