10.19.07

10.19.07

Twenty years to the day of the Black Monday market crash, major market indices tumbled nearly 3.60% on average. Earnings reports along with rising oil prices brought concerns about where the economy is headed. The Dow Jones industrial average lost 4.05% for the week, the S&P 500 fell 3.92%, and the Nasdaq Composite dropped 2.87%. The best was the NDX that gave back only 2.11% and the worst, the R2K gave back 5.04% for the week. Not a good week. We gave back 1.05% on the half that was in the NDX and we got hurt by the Dow to the tune of 2.03% on the other half for a total of 3.08%. The interesting thing is that the NDX was up for the week after the close on Thursday. Where we got blindsided was that it was a mixed bag after four days. The market doesn’t usually fall off a cliff with the conditions that were in place. We were close to putting on a PPP but not quite. The Market has a way of making investors eat ‘humble pie’ every now and then. To wrap it up for today, we are now in CASH and in spite of everything else; we still made a lot of money on this trade. We would be happy to have a trade like this once a year every year.

            Many times, after days like Friday, the market will bounce back over the next few days; but not always. This has a somewhat different look to it and requires a lot of caution. Better safe than sorry. 

            We will be looking over everything that we can in the first few days of next week, and will be sharing them with you on our Blog page. Be sure to check it out during the week.

Till next time

The MTA Staff