Sandeep,
>>>> Has anyone used the current DOW 30 stocks to calculate the DOW in oct 1998? Maybe it actually hit the 1998 lows but we are just not seeing it because the index has been changed. <<<<
Thats a valid point. Here's a counter point. The first time I heard the comments that the DOW could get to its OCT 1998 LOWs since the EUROPEAN/foreign markets did already was from on CNBC which they got from the professionials/institutions. I never even thought about it since I really dont follow the foreign markets, nor have I heard it mention on SI prior to it being announced on CNBC, then again I dont read alot of posts.
My point is, could this be a clue that the PROs already have it in mind that they want it to get that low before they feel comfortable. As much as the institutions are saying to buy, it was mentioned on CNBC that it wasn't really the individuals who were recently selling but it was the institutions, while many institutions where pushing the PATRIOTIC CAUSE/calm-down approach. Im not saying that no individuals were selling, but Im under the impression, whether right or wrong, that the institutions were selling at a stronger rate than the individuals. Hypothetically, if the individuals were selling at the X-rate, the institutions were selling at the 2X-rate. The point Im trying to make is that for the time being the market may be at the will of the institutions at a higher level than normal.
I did not do my own research to confirm what was stated on CNBC, but from the many J6P I know, they were all darn nervous, but very few sold last week. |
