by ShakerTS
I follow the US markets on a daily basis. It's not my main job, but rather a hobby I've picked up over the past 8 years. And, while I thought everything was making sense earlier this week, I'm confused about Wall Street's reaction to the final act in this week's 'bailout' performance.
Maybe I'm missing something. But here's what I've seen:
On Monday, the first bailout bill failed to pass the House. The DJIA was down around 200 points for the day at that point, but the announcement of the defeat sent it over a cliff, tumbling nearly 800 points overall.
On Tuesday, it gained back a good portion of that loss (a solid 500 points) to close around 10,850—very close to the level it was hovering at prior to Monday's announcement. The Dow remained near that level (remember, this is nearly 200 points below Monday's open) for most of Wednesday. The Senate, of course, passed a 'sweetened' revision that evening.
Thursday (yesterday) was another march downward, even as the pundits were issuing statements reflecting growing confidence this new and improved bill would pass the House. The Dow closed around 10,500—off a good 300 points for the day.
And that brings us to today. Friday. Wall Street's salvation finally arrives as the House approves the bailout package. Angels sing as the chorus of Handel's Messiah reverberates throughout the trading pits, and the markets explode into the stratosphere.
Except—that's not what's happened today. Far from it.
Moments ago, the Dow closed nearly 160 points down at 10,326. For those of you playing along at home, the absolute rock-bottom, fear-induced low after Monday's failure announcement was 10,266.
On Monday, the world was ending. Horsemen of the Apocalypse were scheduled to appear. Dogs and cats living together. And the Dow just closed 60 points away from that catastrophic event low.
Zzuhhh??
Something doesn't smell right. But then again, I've only been at this for a few years. And I'm sure the talking heads on CNBC will come up with many plausible reasons the market tanked after its vital $700 billion cash infusion and why I should not buy all the gold I can get my hands on.
So no need to freak out, America. I'm sure come Monday, everything will be fine.
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