The Peter Ships Show

Yesterday's record breaking 2000 point drop in the Dow yesterday, which was a record

high for the number of points lost in a single day, not a percentage record, was followed

by today's 1167 point rally in the Dow. It would have been a record, but for the record

that we just said, I think a week ago, when we rally 1200 or so points. But remember,

the day of that rally, I mentioned on this podcast, that rallies of that magnitude are

more common in bear markets than they are in bull markets. And that's what we're in.

I think despite the fact that the major averages are still not down 20%, excluding the Russell

2000, which is down more than 20%. So that one is in bear market territory as is the transports,

which is a smaller index. And of course, the financials are in bear markets. But the other

index is still managed to avoid officially moving into bear market territory. But that should

come relatively soon. Oh, and by the way, on the Russell 2000, even though that had the biggest

move by far yesterday, the rut was down a lot more than the S&P or the Dow or the Nasdaq yesterday.

Today's rally was far less impressive. You have the down the S&P. They were up about 5%, but the

Russell 2000 only rallied by about 2.85%. So about two thirds of the rally in the larger stocks.

And again, this is the index that is most reflective of the US economy. And this is by far the weakest.

Today's 1167 point gain, if you just look at it, you don't really how it was accomplished because

it was a roller coaster ride. The market gapped up. In fact, at one point before the open,

the Dow futures were limit up. They were locked limit up, just like they were locked limit down

the day before. But they opened. I think the Dow was up about 800 or so on the open. I'm not sure if

it quite hit up 1000. And then it had a big sell off. And it went to down 100 to 200 points. So

the entire rally was lost. We went down 1000 points. And then we came back up and closed up

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