Early gains in the Dow fade fast

Last night, Asian markets started off very weak. Tokyo was down to another 26 year low. However Hong Kong rose following the prior day which was the 2nd worst point loss day in its history. In their PM, stocks rose & Europe followed thru with strong gains. Encouraged by that performance, Dow futures were up 350 before the opening today. Dow rose to a gain for over 300 after the opening, but enthusiasm faded fast with gains reduced to only 120. Advancers were ahead of decliners 2-1, NAZ was up a meager 6 & the indices I follow were showing only minor changes.

Markets were encouraged by extreme oversold conditions bringing back bargain hunters looking at what was called the cheapest valuations in years. But macro economic conditions remain dismal. The Conference Board reported the index of consumer confidence fell to 38, its lowest level in 41 years & far below the expected number of 51.

•U.S. Consumer Confidence Drops to Record Low on Stock Slump, Credit Freeze


Oct is shaping up as the worst Oct in 70 years. And that follows what was probably the worst Sep in history. Month end statements will be mailed in a couple of weeks reminding those who don't use the internet about the awful beating they've endured. Nervous Nellie's may decide to cash out not to mention tax loss season is approaching which may have a significant effect on the markets this year:


Dow Jones Industrials --- 2 months




The chart shows 8K has been a line of support for a few weeks. However while writing this post, Dow dropped from up 120 to up only 59. Maybe that line in the sand will be tested today.