Stock Market up 247 points ! But why ?

[Wiregrass Willie]

I hadn't paid any attention to TV today. I came in the house about 4:00 PM and saw the stock market was up 250 points.

Holy Shee-it !

The first thing I did was scream to my wife --- :

"Honey, hand me my black suit ! Somebody must've shot Dubya." !

I couldn't think of any other reason the stock market would be up. I quickly turned to CNN and you can imagine my relief and happiness when I realized that nothing harmful had happened to our beloved leader.

Now I am a total loss as to why the market is up 247 points.

[BlackVelvet04]

1. The moon is in the seventh house

and Jupiter's aligned with mars??????

[whistle]

2. Down 250 yesterday, now up 247 today...sounds like manipulation maybe?

[calteacherguy]

14. It's just volatile because it's August and people are overly freaked about credit worries.

Now back to your regularly scheduled programming....

[youngdem]

3. The government is handing out free money. That's helping these short term gains

Also, the super rich, trusts, employee funds still need a place to put their money.

Plus, there is always rebound buyers, looking to pick up buys at a bargain after what they perceive as irrational selling.

Lastly, remember that the 'market' is really a collection of blue chip stocks. A bunch of stocks can go up a little that make up the Dow while a FEW go down a LOT, and the 'market' will go down, but really it's just the Dow Jones. The reverse is also true. So, sometimes the Dow is deceptive as to the overall direction of the market.

[mudesi]

4. Because this latest volatility is probably just a correction

The probability of a recession is actually quite low. Not zero, but low.

If you look at a chart of the S&P 500, you'd see that things are actually par for the course. One of many little bumps in the uptrend that has not been broken just yet.

[onenote]

5. market correction

The market has been swinging up and down like this for weeks, as investors seek bargains after a big drop and then get nervous about the credit crunch etc. Its nothing new. ALso, there is some thought that the fed might take action on interest rates, which also spurred the bargain hunters.

[The_Casual_Observer]

6. "bargan hunting"

I'll be back down by the end of the week,just as soon as they sucker some more people into it.

[dbt]

7. Plunge Protection Team

You know..the one that does NOT exist.

[Warpy]

8. The Fed pumped 2 billion into the system overnight.

That's why.

The boys in the back rooms are taking it as a signal that the prime rate will be cut again.

[annabanana]

12. That would be OUR two billion, right?

Maybe they could spare a nickle for New Orleans?

[bluerum]

9. Because over the last several weeks it has lost over 1000pts. IMO It is a little

bit of a recovery fueled by fed $$$'s. In mid July the DJI were at 14,000.

In mid August, down to approx 12,900 on what is called the sub-prime mortgage market collapse.

Over the last couple of weeks the feds have bailed out the banks and mortgage note holders with lots and lots of cash. They also lowered a key interest rate for them. They did squat for the poor suckers who are losing their homes.

The market loves that kind of stuff.

250pts is barely 25% of what was lost. The DJI is basically where it was at in May 07. Not that a little recovery is a bad thing, but we are still in the hole for 75% of where we were a month ago.

[MrModerate]

10. Why not? It's not as if the purturbations in the market . . .

Are reality-based. The exchange is no more than a pressure vessel filled with mutants who spend their days smelling each others' sweat and growing more or less hysterical based on the odor. NonIlluminati are not invited to play -- remember the fate of the day traders in 1999-2000?

[catmandu57]

11. I get the feeling that they're going to drain every last dollar possible

from jo shmo then the bottom really is going to drop out. I don't know what to think, just when it appears that life sipport has failed and they're going to pull the plug the damn monster comes to life again. I don't know profit taking? pump and dump, write three excuses and put them in a hat, next time it happens pull one out, it'll be just as valid then as now.

[calteacherguy]

13. Why? Because the fundamentals are strong.

I added a little more to my equity holdings yesterday, and I'm glad I did. Interest rates are relatively low, inflation is low, growth is moderate, p/e ratios are very reasonable, and folks are very pessimistic about the market...all good signs for a buying opportunity.

I expect the market will reach new record highs by the new year as investors look towards increased corporate profits in 08'.

[Roxy66]

15. I think corruption is over-flowing at the FED as well as the rest of the GOP controled

government. What makes any of us think they arent raping the stock market as much as they can before their asses are kicked out?!!!