Today in the market, Friday, October 10, 2008: The Dow and the S&P 500 dropped for an eighth session on Friday, as a dramatic late-day comeback stalled out to cap the worst week ever for the S&P amid more anxiety about the condition of credit markets and the threat of a global recession.
Even in a market whose recent hallmark has been volatility, Friday’s action was exceptional. The Dow lurched back and forth in a 1,000-point range and a late pop in technology shares helped the Nasdaq eke out its first gain of the month. Volume on the New York Stock Exchange was more than double the average of 2008 so far.
But bets that finance chiefs of the world’s major economies will take action over the weekend were not enough to keep the Dow and the S&P 500 out of the red. Finance leaders from the world’s rich nations pledged a coordinated response to the credit crisis, but stopped short of backing a British plan to guarantee lending between banks. (headlines & market commentary by Reuters)
ETF/CEF Discussion: Our trip from Penrose to Durango went faster than planned, thus my blog today is on time. When we left home this morning the news on the market selloff looked bad. With the start of a quasi-long weekend (bond markets closed Monday, Columbus Day) I was expecting more carnage at the close today, but I was surprised it wasn’t that bad. However the worst week label was earned for this infamous week. With that said it looks as if the slide hasn’t ended, so look out below!
As I expected, there were no selections from RSI today and very few for the week. I’m concerned that my bond ETFs have been dropping, not what I expected. Not quite a safe harbor. When there is such a great selloff, as we are experiencing, then the market players liquidate everything. I guess I’ll have to hold on like the rest of you. Have a great weekend. We leave now to attend the Durango Heritage Celebration Governor’s Banquet at the historic Strater Hotel in Durango, CO. Then tomorrow night is the Victorian Ball. A good time for an attitude adjustment and an opportunity to put the market in the back of my mind.
