Bull run: Dow up 936 points
posted at 4:21 pm on October 13, 2008 by Allahpundit
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We had the suicide open thread on Friday, it’s only right that we have the climb-down-off-the-ledge thread today. The biggest one-day gain in Wall Street history. Damn it, what’s a resolute pessimist to do?
I’ll tell you what it’s time to do. It’s time to … spread the wealth around.
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As I recall, Bull Run was a disaster for the Union Army. Feel better now, Allah?
ManlyRash on October 13, 2008 at 4:24 PM
The good news is that the market and business will always take care of itself. It doesn’t need politicians that couldn’t run a Kool-Aid stand to step in. The problem with this last financial wet-fart can be placed right on the doorstep of the Democratic congress, and that’s the news I am spreading to my “undecided” friends.
McCain should be buying ad time like mad to spread this word. “The Dow is Racist” since it doesn’t want Obama.
Hening on October 13, 2008 at 4:25 PM
now we need McCain to take the bull by the horns!
wildweasel on October 13, 2008 at 4:27 PM
Democrats jumping out of buildings
Wade on October 13, 2008 at 4:27 PM
Is it just that the stocks went so low that they looked like a good idea?
I know a co-worker who was getting giddy seeing them fall so much and had decided to buy a ton for that reason.
Esthier on October 13, 2008 at 4:27 PM
What? Someone thinks we still value the notion of private property? SCOTUS killed that silly idea with Kelo, didn’t they?
progressoverpeace on October 13, 2008 at 4:27 PM
Seriously, dude, with all the good poll news today, with several polls out showing Obama’s lead shrinking to 2-5 points, and with you highlighting only the negative ones, it’s nice to see you actually post some good news. This site has become such a downer recently.
blue13326 on October 13, 2008 at 4:28 PM
Spread the wealth around!
Spread the limited supplies around!
Spread the breadlines around!
/socialist
Spirit of 1776 on October 13, 2008 at 4:29 PM
European banks, and the US Fed, announced the biggest bailout in history…
and the Dow goes up… gee… big suprise there.
It would also be interesting to see how many short traders lost a BUNCH of money today…
Romeo13 on October 13, 2008 at 4:29 PM
Obama- “uhm…..I caused this.”
FiveWays on October 13, 2008 at 4:29 PM
The Messiah knows this is just a sucker rally…things are not going to get better until he takes office./sarc
d1carter on October 13, 2008 at 4:29 PM
Do you see what happens when Obama is actually asked a real question and pressured for an answer?
Too bad it takes a plumber on the street to do it, huh?
Sugar Land on October 13, 2008 at 4:29 PM
This is not the bear market that I knew.
rbj on October 13, 2008 at 4:30 PM
Is it possible that a ton of people are shorting the stocks with notion of the inevitable tanking if Obama wins? Then they can take their gains before he gets into office.
bbz123 on October 13, 2008 at 4:31 PM
It was the European government actions, especially Great Britain with RBS, that caused the Dow to open higher. It went higher again when Paulson met with the CEO’s. The free market works, but it’s in the midst of a systemic breakdown that has required all of the Western governments to step in.
The gain helps McCain, though. If we can get a couple more days like this before November 4 he has a shot.
dedalus on October 13, 2008 at 4:31 PM
We are not out of the woods yet but people have to understand that the fundamentals of this economy are always strong.
Also, a special word to the wise and to the idiots screaming and cheering for a “depression”: This economy is far to complex for any one major incident to bring it to its knees. There will always be ups and downs to our markets. Some huge drops ands some great gains. Thats just life.
titus_pullo on October 13, 2008 at 4:33 PM
bbz123 on October 13, 2008 at 4:31 PM
please don’t let it be so!!!!!!!!!!!!
kareyk on October 13, 2008 at 4:33 PM
Obama-
“Now see…..this is what I’ve been talking about…….something something something….corprorate CEO’s………something something something….middle class families….something something something…4 more more years of George Bush…..something something something…….I’m responsible for this market rebound. Something something something….hope and change….something…yes we can.”
FiveWays on October 13, 2008 at 4:34 PM
I think the politically correct name is “little people”. : )
Rick on October 13, 2008 at 4:34 PM
Lobby congress to repeal the bailout, or at least phase it out early
LimeyGeek on October 13, 2008 at 4:35 PM
LOL…
/breaks into song…
We represent the Lollypop Wallsteet Traders Association….
Romeo13 on October 13, 2008 at 4:37 PM
I hope the guy responded to Obama with, “Well if thats the case why should I work as hard as I can?”
Rbastid on October 13, 2008 at 4:37 PM
Their short covering helped the rally. Put owners lost not just from the point gain but from the drop in volatility.
dedalus on October 13, 2008 at 4:38 PM
Romeo13 on October 13, 2008 at 4:37 PM
ROFL
kareyk on October 13, 2008 at 4:38 PM
What people saw today was a short covering rally off of massively oversold conditions. I hope people took profits today. We have about another 1,000 pts to the upside, maybe, and then the slow decline back to friday’s lows. If we bounce off of those lows its good if not its bad. take the next couple of days to get out of the market if you held during the sell off last week. take what profits you can.
Obama will be very bad for the market. very bad.
unseen on October 13, 2008 at 4:38 PM
Yea. But it was party time here in Richmond.
BacaDog on October 13, 2008 at 4:39 PM
Calm yourself, kayak.
ManlyRash on October 13, 2008 at 4:40 PM
But put owners always sleep well at night.
progressoverpeace on October 13, 2008 at 4:40 PM
This is not the bear market that I knew.
rbj on October 13, 2008 at 4:30 PM
then you do not know bear markets. bear markets is spiced with massive short covering rallies. You do not see massive rallies in a bull market. You see them in bear markets because of short covering.
unseen on October 13, 2008 at 4:41 PM
I’ll bet. Alot of the gain was probably due to covering.
BacaDog on October 13, 2008 at 4:41 PM
Hey! Beat me to it.
BacaDog on October 13, 2008 at 4:43 PM
What a relief. I hope it lasts. I heard some financial guy on Fox Business saying the government could sell back its purchased in maybe a year or a year and half, at a profit. I hope so.
Terrye on October 13, 2008 at 4:43 PM
It’s only on a Bull run cuz Obama promised to “spread the wealth around”
/MSM
lorien1973 on October 13, 2008 at 4:44 PM
Redistribution of wealth the free market way
William Amos on October 13, 2008 at 4:44 PM
Is McCain going to come put and say something? You know Obama is going to try to get credit when it has nothing to do with him at all. Maybe the polls showing McCain coming within 4 is giving the markets confidence?
jencab on October 13, 2008 at 4:44 PM
Why do you say that? Obama will control the markets, being that they will be nationalized. It’ll be okay, really. The only thing we’ll have to worry about is finding the shortest breadline in our respective districts.
SARCASM
Rick on October 13, 2008 at 4:44 PM
Depends if they are covered or naked ;-)
dedalus on October 13, 2008 at 4:45 PM
I concur, yet I am addicted to the mind of Allahpundit. Just when I swear off on a forty-eight hour retreat, I’m back wondering what the View is doing. It’s sick.
Hening on October 13, 2008 at 4:45 PM
LimeyGreek:
I am not expert, not by a longshot, however…I have my doubts that markets overseas and the Dow today would have had any kind of rally if not for the response of numerous governments in the last few days. It might be psychological as much as anything, but at least for now there seems to be some confidence returning.
Who knows what will happen tomorrow or next week.
Terrye on October 13, 2008 at 4:46 PM
Calm yourself, kayak.
ManlyRash on October 13, 2008 at 4:40 PM
Sorry to blow my top..I’ve lost way to much in the last 2 weeks- I cannot afford to lose more. But, neither can anyone else- I know I’m not in the boat alone.
kareyk on October 13, 2008 at 4:48 PM
I know you were kidding, but, in all seriousness, anyone who owns gamma below the strike sleeps well. I have never been able to figure out anyone who doesn’t protect their investments, especially when volatility is low.
progressoverpeace on October 13, 2008 at 4:49 PM
hening I am the same.
It’s like a bad relationship. Hate it when you’re here, but can’t stand to leave!!!
blatantblue on October 13, 2008 at 4:49 PM
McCain criticized Bush – “8 years of spending”. Forget Clinton recession, Corporate scandals, 9/11 attack, 2 wars.
Badly want to distance himself from Bush, because O is trying to connect with the “unpopular Prez” .
Well, he could say –
Bush is elected twice by American people. He is a honorable man I would associate with no problem, unlike Obama’s alliance with unrepentant terrorist Bill Ayers, anti-semite Reverend Wright, Mob boss Tony Rezco & such people.
Anita on October 13, 2008 at 4:50 PM
Let’s not feed pundit’s ego, though. Otherwise, he’ll start posting a bunch of giddy crap…
Rick on October 13, 2008 at 4:50 PM
We can only hope. I’ve kind of missed the humping robots.
BacaDog on October 13, 2008 at 4:53 PM
There’s been a lot of money pulled out and left on the sidelines over the past few weeks. With the work that got done over the weekend by the world banking systems, that money had to get re-invested. Tomorrow will be just as important and todays great gain.
Rovin on October 13, 2008 at 4:54 PM
As I recall, Bull Run was a disaster for the Union Army. Feel better now, Allah?
ManlyRash on October 13, 2008 at 4:24 PM
But it was a huge victory for the south, which is going to spank Obarbie.
OT: Are all of you ledge-sitters ready to climb down now?
Bishop on October 13, 2008 at 4:54 PM
Tomorrow’s Headlines:
OBAMA’S PLAN IS WORKING:
DOW UP 11%!
aquaviva on October 13, 2008 at 4:55 PM
You know Obama is going to try to get credit when it has nothing to do with him at all.
I heard somewhere that Odummy, or at least his campaign, is sorta kinda trying to take credit.
Bishop on October 13, 2008 at 4:55 PM
Lot of people who panicked and sold low last week are now banging their heads again. SWEET!
GarandFan on October 13, 2008 at 4:57 PM
That is exactly what got me back into the market, not a lot, just one foot, but back in anyway. Also it should be noted that trading volume was low today, I believe, compared to say last Friday.
MB4 on October 13, 2008 at 4:57 PM
Exactly.
phronesis on October 13, 2008 at 4:57 PM
Two victories! The South won Bull Run and the Second Bull Run (AKA the First and Second Manassas).
m064404 on October 13, 2008 at 4:58 PM
It’s a bear market rally, albeit a big one. The fundamentals are still weak until we get rid of this debt.
lodge on October 13, 2008 at 4:59 PM
If anyone sees the video of Obama telling people he wants to spread the wealth around and still votes for him, they deserve the resulting massive economic unemployment. My solution is that every small business owner should call his employees together and tell them this:
Andy in Agoura Hills on October 13, 2008 at 4:59 PM
Not yet. I’m invested right now to play the rally, but if the government actions don’t start reviving the credit market in short order, we are in for more trouble ahead. I do think equities have discounted a pretty dramatic fall in profits even with today’s rally, on the other hand.
phronesis on October 13, 2008 at 4:59 PM
It may be a sucker’s rally. I’ll wait about two months to go in.
jim m on October 13, 2008 at 4:59 PM
A couple of weeks of this good news and the dems will be on the ledges.
eaglewingz08 on October 13, 2008 at 5:01 PM
I know that, Your Grace. I was just trying to cheer down Allah. He was disturbingly ebullient.
ManlyRash on October 13, 2008 at 5:01 PM
“Spread the wealth around”
Obama tells the ignorant ground
When you hear him say that
Lock up all you’ve got
And head for the mound
Entelechy on October 13, 2008 at 5:01 PM
The election is over with that video……..he got a little too confident and said what he is really going to do.
McCain wins 49%, O’Bama 46%.
Game – match – riots in the streets.
Hillary and Bill throw a losers party.
Starlink on October 13, 2008 at 5:02 PM
Also, U.S. fixed income markets closed today. Hope tomorrow sees tighter credit spreads. Neel Kashkari could move markets with another press conference delivering more TARP detail.
The Dow might even get all the way to a stratospheric 10,000.
dedalus on October 13, 2008 at 5:04 PM
That video is the October surprise, and it is of O’Bama’s own doing —
McCain will nail him with it tomorrow night…….
Ads……
Palin….
Nightmare scenario for Camp O’Bama…..
Starlink on October 13, 2008 at 5:04 PM
Tomorrow’s Headlines:
OBAMA’SMcCAINS PLAN IS WORKING:DOW UP 11%! LIBERAL MEDIA, DEMOCRATS HARDEST HIT.
aquaviva on October 13, 2008 at 4:55 PM
Fixed!
Addendum: The fact that there was little or no profit taking and the end of the session today might be an indication that we’ve reached a bottom. Again, tomorrow will tell alot when all the markets are open, including the bond markets.
Rovin on October 13, 2008 at 5:07 PM
Yep, buy low sell high! The market was boosted by those with the smarts and available cash to snap up all the bargains! Me, I have the smarts, just not the cash right now or I would of gotten in on the buying frenzy myself!
Liberty or Death on October 13, 2008 at 5:07 PM
I know that, Your Grace. I was just trying to cheer down Allah. He was disturbingly ebullient.
ManlyRash on October 13, 2008 at 5:01 PM
I understand now. You just saved yourself from being the point man in Pickett’s division.
Bishop on October 13, 2008 at 5:10 PM
McCain will nail him with it tomorrow night……
Starlink on October 13, 2008 at 5:04 PM
yeah right. McCain will be too scared that the MSM might think it is a racist statement.
unseen on October 13, 2008 at 5:15 PM
Wait a tick,I thought the most ethical House in
history,Nancy Pelosi was wanting another stimulous
package infusion!
BTW,a hem,
the Foxes(Liberal Party),are still in charge of the
(Hen House)!
canopfor on October 13, 2008 at 5:17 PM
Today was a holiday. Let’s see what tomorrow brings.
He must really bank on the fact that there are a lot of ignorant voters, or that we’re stupider than he thinks.
Entelechy on October 13, 2008 at 5:21 PM
There is nothing wrong with your investments. Do not attempt to adjust your portfolio. I am controlling the markets. If I wish to make you richer, I will lift up the markets. If we wish to make you poorer, I will crush the markets. I can reduce your life to a soft blur, or sharpen it to crystal clarity. I will control your ups. I will control your downs. For the next four years, sit quietly and I will control all that you see, hear and feel. You are about to experience the awe and mystery which reaches from the inner mind to THE OBAMA UNLIMITED.
- The One
MB4 on October 13, 2008 at 5:21 PM
If the market is in the 11,000 range the week before the election, McCain’s probably in. If it’s below 9500, Obama has it. Correlation may not be causation, but anger of the uninformed is a definitive factor.
michaelo on October 13, 2008 at 5:23 PM
What?
We can’t have this.
CNN, more fear-mongering, stat.
Ryan Gandy on October 13, 2008 at 5:23 PM
Hope and Change indeed.
Rick on October 13, 2008 at 5:32 PM
Obvs, some was the G7 action and UK action before the market opened. But that was also partially baked into the market already, which is why you had the huge rally on Friday (before it ultimately fell 100 points). That was shorts covering ahead of the G7 news.
Beyond that, you do have funds starting to wade back into the market, as there are any number of stocks getting hammered for absolutely no rational reason, like Rubbermaid.
And for all of Allah’s pessimism, he had that story in the headlines.
Karl on October 13, 2008 at 5:32 PM
Obama’s “spread the wealth around” plan….
Socialists believe that wealth should not be concentrated in the possession of a few members of a society (”few” being a relative term), and they believe that only the government should be able to determine how much is “enough” and how much is “too much.” The Socialists view it as the duty of the wealthy to support the non-wealthy.
Marx, Engels, Lenin and all the rest will be turning over in their graves laughing if Obama the Socialist is voted President of the United States.
albill on October 13, 2008 at 5:35 PM
Is it just a temporary bounce?
aengus on October 13, 2008 at 5:37 PM
Short covering hmmmmm? Gee, why do you think they’re covering? Could it be that those traders thought the market had reached a low? Maybe the bottom?
It was up 11% today and things are a lot more volatile than 20 years ago. You don’t just see massive rallies in bear or down markets. You see them at the end of bearishness too.
Uninformed investors sell at the lows and buy at the highs. When AP gets back in, you’ll know we should sell again.
I said last Thursday to buy back in at 8200/8300 Dow. I still believe that is pretty close to the bottom. It was there in ‘98 and in ‘03. My opinion only and to be honest, I don’t buy stocks. I buy indexes.
Vince on October 13, 2008 at 5:41 PM
“sucker rally”
Well if it is, it’s one hell of a sucker rally.
I know I made some back today. Last time I looked, Alcoa made up 20%, with about and hour left.
LtE126 on October 13, 2008 at 5:47 PM
Glad I called my broker this morning with instruction to be on the look out for bargains.
locomotivebreath1901 on October 13, 2008 at 5:49 PM
If that was a dead cat bounce, it has to be the biggest in history
Vashta.Nerada on October 13, 2008 at 5:51 PM
Hmmm.
Gas prices falling. Dow climbing. Have the socialists fumbled the ball, or is this just a fake field goal attempt?
Browncoatone on October 13, 2008 at 5:57 PM
Good news for a pessimist: There’s just got to be a sell-off tomorrow.
Attila (Pillage Idiot) on October 13, 2008 at 6:03 PM
McCain, you better not be a pu$$y in this next debate. You have so much to work with, and you’ve just sat back and done nothing. You’ve got an infanticide supporting, black supremacist befriending, terrorist befriending, never stops lying socialist and you want to play nice, other than calling him “that one”. How about destroying him based on real issues. Obama aims to destroy the country as we know it. TELL THE PEOPLE. PLEASE BLAST HIM REPEATEDLY FOR THIS “SPREAD THE WEALTH LINE”!!!
RightWinged on October 13, 2008 at 6:03 PM
McCain should say that he is going to keep Paulson on. Put Obama on the spot. If the market does well during the next 3 week there may be some sense that continuity during the crisis would be beneficial. McCain isn’t going to convince anyone that he’ll figure out the financial markets himself.
dedalus on October 13, 2008 at 6:15 PM
Debtor Nation
Over the past few weeks as the economic crisis has come into hideous focus, we’ve spent a lot of time blaming Wall Street executives and a lot of time blaming Congress, both deservedly so.
One area we haven’t spent enough time focusing on is the millions of Americans who helped get us into this mess by taking on more debt than they could afford. There are many sad and tragic stories among this group, of course, and while we don’t want to dismiss or denigrate them, it’s fair to point out they represent only a small portion of those who’ve gotten into trouble by overextending themselves financially.
More important still is to recognize the millions upon millions of Americans who’ve managed their finances prudently, lived within their means, and continued to make payments on time even as they are saddled with the burden of bailing out those who did not.
MB4 on October 13, 2008 at 6:17 PM
Debtor Nation
MB4 on October 13, 2008 at 6:18 PM
The market stabilizies when the chicken littles get out and the smart money goes in.
Believe me the bargains are out there not only in stocks but also in bonds. My taste is mostly in grade A+ high yield bonds(5-8 percent) which are suddenly available in limited quantities.
docdave on October 13, 2008 at 6:24 PM
Even with todays steep reaction the landscape is pretty bad right now and our nation is still consuming more than it produces. That is not fundamentally sound nor does it bode well for the future as this has been the trend now for 25 years. A global recession we can endure but there are systemic issues which need to be addressed within the cap markets.
lexhamfox on October 13, 2008 at 6:36 PM
Er … you trust the ratings? Have you not been around for the past few weeks, or something?
progressoverpeace on October 13, 2008 at 7:02 PM
Oh 936? Is that all? :)
ok Dems…take the credit. Wait, first lets see if it holds.
johnnyU on October 13, 2008 at 7:06 PM
With regard to the Dow today, there is an old saying that this seems confirmation of:
Most people, when they trip over the truth, pick themselves up and hurry off as though nothing had happened.
CC
CapedConservative on October 13, 2008 at 7:17 PM
Where are my brownie points?
Entelechy on October 13, 2008 at 7:18 PM
Sucker’s rally, enjoy.
koolbrease on October 13, 2008 at 7:40 PM
I don’t know whether it’s a sucker’s rally or not, but be careful. Rallies within bear markets can be explosive.
Most bear markets don’t end with ‘V’ bottoms. They end with boredom and exhaustion.
Bartrams_Garden on October 13, 2008 at 8:32 PM
What to do?
Well keep on being a pessimist, that’s what.
And listen to me say, “I told you so, next question.”
In other news, I heard of an enlisted military guy who invested $18,000.00 in Wachovia @ 0.13 cents and sold out with over $200,000.00 in profits.
Lucky bastard.
Mcguyver on October 14, 2008 at 12:08 AM
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