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2.7%  Q1 GDP    4.57%  avg. 30-year mortgage     9.5%  Unemployment

Where Is the Bottom?

Analysts seem to agree that this massive stock sell-off we're experiencing was a necessary purge, or "flush" in a system corrupted by sharp dealing and denial.

But where will it end?

Just a year ago, people were swapping tips on best to grow your nest egg, or which stocks were the hottest.

Now, they're talking about a chilling phrase: "capital preservation." That means holding on to what you have left.

Traders on CBNC right now, who look battle-weary, are predicting -- more hoping, it seems -- that the Dow's bottom will be around 8,000. Which gives the Dow 579.19 points to drop today.

Regardless, expect a big sell-off at the opening bell, which comes in a few moments.

-- Frank Ahrens

By Frank Ahrens  |  October 10, 2008; 9:23 AM ET
Categories:  The Ticker  
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Next: The Dow's Whiplash

Comments

Thought of the day.
"The way to solve this problem is to let people go bankrupt," Jim Rogers

I agree. Pumping money into a dead bank is like filling the tank with a blow engine. When a horse is dead it can't race and it certainly can't eat. There are lots of dead horses out there. There are a few crazy horses too. Maybe more than a few. A guy fixed a horse race, the fog rolled in and the order of the fixed finish ended up remixed and the guy who fixed the race went broke paying the bad bets off. It was real foggy here this morning. It's always something.

Posted by: IV | October 10, 1908 9:33 AM | Report abuse

Bottom was 9:35 this morning. There will be sharp intraday turnaround, closing at least 300 points above today's open. Next week will see 10% gain in all indices.

Posted by: db | October 10, 1908 9:44 AM | Report abuse

There will always be expenses. Lots of printing, stationary, new checks, new accounts to be opened and all that. Far ahead of the losses that are being sustained by banks who are in the credit card business are those in the mortgage business. Just look at the numbers. They just don't suck, they are the result of being suckered. It's a real hit to the body. All you can do is use your head and make a better deal. Make your best move and move on. Was that so hard or do you want it more difficult? That can be arranged.

Posted by: IV | October 10, 1908 10:00 AM | Report abuse

300 points and I'll raise you 100. It doesn't pay to bluff and there are lots of bluffers out there getting killed.

Posted by: IV | October 10, 1908 10:03 AM | Report abuse

I believe the "bottom" is ZERO?
Nada?
Zilch?
Broke?
Penniless?
Anybody got the time to dredge through all of "TOMHERE'S LETTERS"?
I said, six months ago, that it would below 8,000 in time for the election.

Posted by: tomhere | October 10, 1908 10:04 AM | Report abuse

You were warned. The bailer goes to the bottom, so we'll see where all this free Treasury money goes. It looks like a deep pit getting deeper. The fraud gets punished and you don't reward the people who committed the fraud with more funds. There won't be a need to bailout. There won't be enough to bail with. People need to be paid for honest work. If you are screwed, it's best to cut your losses early instead of screwing everybody else with political gamesmanship.

Posted by: IV | October 10, 1908 10:11 AM | Report abuse

It's going way below zero and it's going to be another long cold winter. Find somebody to stay warm with. I'll do the same. God bless America.

Posted by: IV | October 10, 1908 10:14 AM | Report abuse

BROKER -- What my broker has made me.

STANDARD & POOR -- My life in a nutshell.

--------

Posted by: gene | October 10, 1908 10:21 AM | Report abuse

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