INSUBCONTINENT EXCLUSIVE:
By Sarah Ponczek, Vildana Hajric and Elena PopinaBludgeoned for weeks, a bull market is left for dead, its fate seemingly sealed as session
after session of red ink show no sign of letting up
Suddenly, at the last second, a rally -- death is averted -- the obituaries go back in the can.
December 26, 2018 Who knows
But such a scenario has played out twice in the past, once in 1998, and again in 2011
a dead cat bounce.
As of Thursday morning, two-thirds of the rally was intact
The SP 500 rallied 5 per cent, the Dow Jones Industrial Average added 1,086 points, and the Nasdaq 100 had its best day since 2009
A five-year-old exchange-traded fund tracking momentum shares rose 5.6 per cent, its best day ever
All 30 Dow Jones Industrial Average constituents rose, while 99 per cent of companies in the SP 500 finished green.
Why now After all,
In the previous six sessions, the SP 500 managed to avoid a decline of greater than 1.5 per cent just once, extending a December loss that
weekend that President Donald Trump had discussed
report late in the session that a US delegation will visit Beijing in early January for trade talks gave stocks a final push.
For some
investors, it was simply a case of a market getting ahead of itself when everything from hiring to earnings to the economy are still
are common in troubled times
In fact, in eight previous bear markets, the SP 500 had one-day climbs of greater than 2.5 per cent more than 120 times as the benchmark
plunged from peak to trough, according to data compiled by Bloomberg
From the collapse of Lehman to the financial crisis bottom in March 2009, the SP 500 rallied more than 4 per cent on 13 different
Management, which manages about $1.2 billion
Consider the 19.4 per cent drop from April 29 to October 3 in 2011, for instance
At that bottom, the gauge experienced three days of gains greater than 1.5 per cent -- and continued on to its best month in 20 years
That recovery paved the way for the longest bull market ever recorded, the one that was salvaged today.
Something similar happened in 1998,
when the benchmark suffered a drop greater than 19 per cent, bottoming on October 8, before a 2.6 per cent rally spared it from oblivion
said Michael Antonelli, equity sales trader at Robert W
I am 100 per cent not saying we are in a situation like 2008 now, but look at October 10, 2008 to October 13, 2008: the market rose nearly
two consecutive days in which the percentage of stocks rising exceeds 90, an event that happened today
