October 10th, 2008
09:07 PM ET

Two positions in this market: cash and fetal

[cnn-photo-caption image=http://i2.cdn.turner.com/cnn/2008/images/10/10/art.japan.markets.jpg caption="Pedestrians watching market information are reflected in an electric signboard in Tokyo, Friday. Japanese shares nose-dived more than 10 percent in morning trade Friday as panicked investors dumped stocks following massive overnight losses on Wall Street and on growing fears over a global recession."]Susan Lisovicz | Bio
CNN Financial Correspondent

What does it say about investor sentiment when –even after seven brutal, consecutive sell-offs, a loss of $2.3 trillion in four trading sessions and G-M shares trading at levels last seen in the early 1950's– that there was a sense of dread about Friday?

Global markets were engulfed in panic. Tokyo's benchmark Nikkei recorded its worst week ever, Russia's volatile exchange didn't open and Europe was tanking.

Wall Street provided its own fireworks. The Dow plunged nearly 700 points in seven minutes. But then nearly as quickly, the blue chips crawled back into positive territory. Traders erupted in cheers. They know there's a lot of money on the sidelines and that eventually there will be a floor to the indiscriminate selling. And they will profit from it. But it was a head fake.

Stocks went right back down... and then changed direction nearly a dozen times in a swing of about 1000 points. But the mood lightened up. It was Friday and we were still standing. One veteran joked, "There's two positions to take in this kind of market: cash– and fetal."

There was hope for a G-7 announcement before the closing bell, but the market rallied back repeatedly in the final hour. Going long on a weekend? Going long on a weekend with so much news that comes before the open? Going long on a weekend with so much news coming out before the open in this bear market? Ultimately the answer was no. But the bulls put up a fight. And that was enough for many folks after the Dow's worst week ever.

Filed under: 360° Radar • Bailout Turmoil • Economy • Global 360° • Susan Lisovicz
soundoff (3 Responses)
  1. Annie Kate

    I hope the weekend provides the time for the market to cool down and we can see some positive numbers next week. I keep thinking "this too shall pass" and I hope it will for everyone's sake.

    Annie Kate
    Birmingham AL

    October 10, 2008 at 10:41 pm |
  2. Jim

    Is anyone making money in the current market? Who are they and how do they do it?

    October 10, 2008 at 9:23 pm |
  3. Sharon from Indy

    It's like a bad week in Vegas for Wall Street.

    October 10, 2008 at 9:15 pm |