Think the Dow's Decline Has Been Bad? Check Out the Nikkei

7 Year Chart Nikkei

We shouldn’t really be complaining about how the Dow has been performing when you start looking at some of the overseas markets. Look at the Nikkei (above; click to enlarge chart).

What a brutal bear market, 18300 all the way down to 7649 in 16 months. Hopefully the Nikkei can find some support around the 7600 level, which would be the lowest this market has been since '82-'83. If it cracks this support, it could be lights out for all markets as they seem to be feeding off of each other’s negative moves.

Comments

[jcrash:]

Of course, their currency has appreciated more than ours has, so that helps some.

2008 Oct 26 05:28 PM

[User 265729:]

Do you think the Dow is finished declining?

I'll tell you what, let's have this conversation in about six months from now when it's around 4,000 and the talking heads are still speculating on bottom.

The only bottom anyone is going to see for a long time is the bottom of their glass, as they drink themselves to death wondering why they didn't sell sooner.

This sucker is going down... All of these $billions thrown into the mess is going to be good money after bad. The house of cards is falling... It will fall faster and faster...

2008 Oct 26 05:39 PM

[investor88:]

Jeff and curbs-in has insightful comments. Jeff says 7600 support is absolutely crucial, if it breaks its bad. Looking at the Nikkei chart common sense says its quite certain the at 7600 is most likely to be breached!

Curbs-in says Dow 4000 in 6 months despite all the government efforts at fiscal and economic stimulus and bailouts. Looks like it, and at least be prepared for it, despite super gurus saying NOW is the time to buy big time, cash is trash.

2008 Oct 26 07:41 PM

[steveballmer:]

Ouch!

2008 Oct 26 08:06 PM

[Owen:]

investor88, are you for real, or just pulling our leg?

Two weeks ago curbs-in was telling us how the Chinese government is actively trying to poison all Americans, last week he was convinced that all bids on eBay are by shills, and that we'll all be dead before this crisis is over.

You've been here long enough to know this character, and if not--soon you'll see his response here, with my name mentioned every other sentence--that should make this even more evident. Seriously, you're better off taking advice from a Magic 8-Ball.

If Curbs-in really believed the Nikkei or the DJIA are dropping to 4000, he would have taken a short position in both and now be merrily counting his fortunes. No; he's the guy at the street corner with the beard and the cardboard sign telling us that Armageddon and the End times are upon us, and lest we repent we are all doomed. He's not interested in making money, but in being heard. The more attention you give him, the more of these doomsday prophecies we'll be hearing.

2008 Oct 26 08:47 PM

[jurrassic:]

I guess our S&P going form 16K to 8K in twelve is nothing!

2008 Oct 27 09:49 PM

[jurrassic:]

The S&P went from 16K to 8K in just twelve months that pretty brutal.

2008 Oct 27 09:51 PM