.<<Those interested in reading stock market charts should check out the Dow's chart for 1987. Study a Bar Chart and look closely at the week preceding "Black Monday".>>
Thats a very astute observation, a possible parallel to Black Monday
Similarities I find are these.
(although the market is 4 times high, I multiplied the 1987 changes only by 2, and not by 4. Figures are approximate.
1987........ 2005
October......April, Dow changes
6 +187.....+28
7 +24......+61
12-22......-23
13+74......+51
14 -192...-103
15 -114...-125
16 -219...-196
19 -1016 ... ???
Eerie, to say the least
Other oommonalties are that before the crash of 1987 the market was flat for 8 months, today it has been flat for 7 months
This could indicate that people were undecided and thus very responsive to a new indicated market direction,which applies today
In addition , October 1987 was the beginning of a new earnings season, and so is April of 2005
And earnings may not have been looking good then, and IBM says this season is not looking so good either.
So thats the bad news,
The good news is that the odds of a repeat of Black Monday on any particular day is less than 1/3,650.
Sig |
