Crash of 1987 (19th of october 500 points)
I’m looking at a chart of October ’87, and the Dow was about 2700 in the beginning of the month. Before we even got to that Wednesday (the 13th), the Dow was down to 2500. The volume really started ticking up on that 13th, 14th, 15th. The 19th and 20th were both the biggest-volume days of the selloff.
That’s right. Actually, the interesting thing about 1987 is that most people incorrectly say ‘it just came out of nowhere.’ That the market was going up one day and suddenly crashed. And yet, we had a whole series of classic warning signs that the market was weakening. For example, the advance/decline line, which is a simple measurement of the number of stocks going up vs. the number of stocks going down, topped out in early April of 1987, showing that that was the point in which the largest bulk of stocks was starting to peak in price.
Paul Desmond, president of Lowry’s Reports, is known as a “technician’s technician.
PS If you react you almost always have time to prevent disaster. The phrase "it just come from nowhere" is almost always not true. Just look at the signs and react. As someone said if there is a bank run, it's logic to participate & make sure you run fast and beat the crowd.
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