Professor Elam

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Circuit Breakers

After the crash of 1987 the stock exchanges adopted similar limit moves to the commodity exchanges for one day of trading. Right now that is 10% which would be S & P 997. We did hit 1008 on the spx and now it has rallied to 1040 with 35 minutes to go. 

 The price earnings ratio is a measure of optimism.  The more one is willing to pay for one dollar of earnings of a company, the more optimistic one is. Today all price earnings ratios fell, a lot. Optimism is on the decline.

1434 CST SP 1000 has turned out to be support for now. I wish all of you could have sat here and watched this story unfold today, a real study in psychology and markets.

Market Close, I think patterns to the downside are complete but just for the time being, we need some recovery before going lower again, we shall see,

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3 responses to “Circuit Breakers”

  1. veronica Avatar
    veronica

    This is only the beginning. Our Washington elite are already saying that they will need more money after the bailout “fix”. Washington D.C. does not get it. They say “we” – that is you and me – don’t understand. Try us! They are so far out of touch.

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  2. veronica Avatar
    veronica

    This is only the beginning. Our Washington elite are already saying that they will need more money after the bailout “fix”. Washington D.C. does not get it. They say “we” – that is you and me – don’t understand. Try us! They are so far out of touch.

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  3. Jordyn Scheide Avatar
    Jordyn Scheide

    I think it is scary how are economy is becoming. I hope that people dont expect the bailout plan to take affect immediately because most analyst are saying it wiil be over a year or more before we feel the impact of the plan. Times are scary!

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