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October 24, 2005

Trying to explain the rally, Mon., Oct 24, 2005, 5:59 PM

As you know, every time there is a triple-digit rally or decline in the Dow, I take off a reading of the top ten sector-industries, and the bottom ten. I see where the capital is flowing and try to figure out why.

So here is the list for today. How many of you thought this rally was all about economic growth (steel, oils, industrial textiles, heavy construction, trucking, mining...)???

Honestly. You saw the rally grab everybody by the throat. You saw the Dow 30 and the S&P 500 up +1.7 pct and the Nasdaq up +1.6 pct at the end of the day. So tell me; didn't you think the financials and the techs were leading this rally?


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I'm like you... stumped!

So, let's sleep on it. Tomorrow's a new day.

Posted by Posted by Bill Cara on October 24, 2005 05:59:29 PM | Category: Cara Today in the Market

Discourse

Bill,

It's all about Bernanke. The street gets someone they know and understand and who wasn't a surprise. I think that's it in a nutshell.

Posted by: pgriffis [TypeKey Profile Page] at October 24, 2005 7:22 PM [link]

Bill,

I think that it is just a retracement before the market continues down. (could last for several days) Inexperienced traders not paying attention to the big picture. It feels like the bounce was just looking for excuses and Bernanke was conveninet. (not to mention some strong earnings reports) It seams that the inifficiencies of the market expand as the number of novice traders does. There are a lot of novice traders in the market now. (Count me among them :~)

Posted by: Toad [TypeKey Profile Page] at October 25, 2005 1:20 AM [link]