The Trading Day Post 2% Plus Declines in US Equities, by Andrew McCauley
Since early November 2007, when the S&P ASX 200 reached its peak, market participants have awoken to a sadness that is often found in Miss Nina Simone’s voice with 16 declines of 2% plus in US equity markets.
The Shopkeeper is impressed by the clarity of the noisemakers on the business channels that suggest we are in for a rough day. Thanks for the insight. Not one commentator has mentioned what normally happens during the trading day post a large US equity market decline. These guys are the quintessential Monday Morning Quarterbacks. After the event analysis.
Looking forward rather than back, declines in US Equities of 2% plus since this downturn began, have resulted in the following average returns for SFE ASX 200 Index Futures (SPI).
|
SPI Intraday Activity Post 2% Plus Decline in DJIA |
|
|
Close to Open |
-2.05% |
|
Open to High |
0.84% |
|
Open to Low |
-0.74% |
|
Open to Close |
0.25% |
|
|
|
Market opens down (great insight) travels lower & on average closes above its opening print.
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Hello Shopkeeper, I think that being a Friday here may alter your outcome. Maybe a longer time period for your sample, looking at Thursday US moves, and the effect on the Australian market might be more pertinent.
There is a sniff of panic in the air!
Jackie Howe
September 4, 2008 at 11:49 pm