Some Keys to the Biggest Rally Ever, from Victor Niederhoffer
2008 1997
Date S&P close S&P close
10/23 915 1309
10/24 866 1297
10/27 835 1227
10/28 939 1278
10/29 1278
1. The Nikkei broke through 7000 at 22:30 GMT, a 26 year low, but closed up 6% at 7621. The last 10 day max in the S&P was Aug 11, a lapse so far of 55 trading days, the longest dry spell in history. Dax was up 10 % at 10:00 GMT today while the S&P was up 2%.
2. 99% of financial news articles have been bearish. Oat futures at a 6 year low at 219 showing horse power is still a bargain for what must be the most basic, and, one believes, the purest agricultural commodity to be. These prices are typical for all other commodities.
3. The odds for the incumbent party in the Presidential race which have almost gone off the board at 1 in 10 are so low that there is no need for the teetotum that Nock described to keep the Dow down any further. And most important of all, with the market down 30 yesterday, normally good for a VIX rise of 8 these days, it was only up 1.
4. What else?