Black Monday

Quote from danoXP:

... to refresh memories.

This is what our chart looked like the Friday before Black Monday 1987.

BIG drop! (not just a few %)
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extrapolating that would place the crash most likely one week from monday 5.22.06 ( when i am monster shark fishing off the coast of south carolina, LOL ) . not that i believe in cyclical projections or anything...... :D :D
 
that's a classic; callin' a crash after a meager 280points decline...we don't have any data available at this point that signal a major eco slowdown or a catastrophe waitin' to happen...where do u base u assumptions for a crash scenario[?]this is just fear'n'confusion after, as z says, a full moon cycle...as soon as we get new data that reassure us mkt allright, we will promptly change direction.
 
Quote from marketsurfer:

yes.


a substanial decline is entirely possible on monday/tuesday/wednesday next week.

remember the market always tips its hand one way or another.


be prepared for anything, however!

surfer
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Something smells funny across all the indexes IMO. My intuition is saying something traumatic may happen next week... and yes, I do occasionally trade with my gut.
 
Quote from IV_Trader:

Can we call then 1220 a "Support" ? If yes , i will move it to top ten
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I'm not that sophisticated. It may still have legs, there is certainly plenty of upward momentum, but I'd bet it will see 1260 before it sees 1340 this year.

I'm attempting to play weak stocks in the options markets ... so, my opinoin matters little here ... so I'll just go away :)
 
Quote from danoXP:

... to refresh memories.

This is what our chart looked like the Friday before Black Monday 1987.

BIG drop! (not just a few %)
More...



The crash occurred two months after the market's zenith. Wasn't the market hitting 52-week highs a few weeks ago?

The crash of 87 occurred after a parabolic rise in the months leading up to Octobere. No parabolic rise on any of the one-year charts that I see.
 
Quote from smilingsynic:

The crash occurred two months after the market's zenith. Wasn't the market hitting 52-week highs a few weeks ago?

The crash of 87 occurred after a parabolic rise in the months leading up to Octobere. No parabolic rise on any of the one-year charts that I see.
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Not true. The crash was preceded by about a 4 month quadruple-topping congestion pattern... sort of like what we've just experienced but with more normal volatility range. Then, about 6 weeks of weakness. The "crash" was really only a 2-3 day crescendo event.
 
Here is the S&P futures chart from 87--notice how the market was selling off several days prior to the crash on the 19th. No one with even the meanest chart reading ability would have been long on Friday 10/16.
 

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Here is the weekly chart from 87--Note the MACD Histogram and RSI divergences in late August. The market gave plenty of warning --there was no reason for any speculator to be long starting in August.
 

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Now here is the current weekly chart--I think it's easy to see why I have been building a short position. By the way, for anyone who questions the helpfulness of the Histogram and RSI , just look at the oscillations and small trends on this weekly chart--Very easy to follow.
 

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