Interpreting Results

Continuing with a recent theme, here are two questions of interpretation.

Interpreting Market Action

During today's trading stocks opened lower, staged a big mid-day rally, trading in positive territory.  Finally, stocks closed about 2.4% lower.  Here is a chart.

Big.chart

With the trading in mind, what do you think of this news story:

Dell Downgrade Sends Stocks Lower

The text of the story continues the theme.  The problem is that the downgrade news was widely available before the market opened.

Paulson Gradecard

Secretary Henry Paulson was asked how he would rate his performance on a scale of 1 – 10.  He answered that if the question was regaining stability in the financial system he thought that "we were close to a 10."

Judging from media and pundit commentary, most would disagree.  Is there any basis for supporting Paulson's claim?

You may also like

4 comments

  • PureGuesswork November 18, 2008  

    Don’t be so hard on the poor journalists. Their editors would not allow them to write the following:
    “Stocks opened lower because traders are generally depressed, then staged a rally for who knows what reason, before selling off again. One trader, who was a key player in the late sell off, noted, “We seem more comfortable selling stocks than buying them at the moment.”

  • Adam November 20, 2008  

    That’s all part of the coverup, everyone knows it’s a crisis in confidence in NFL officiating after the Chargers-Steelers debacle.

  • Ted Murphy November 21, 2008  

    Well, Paulson has accomplished what he felt was his objective — counterparty risk in the financial markets has been alleviated.

  • Tranate Arvin February 7, 2011  

    Truly appreciable post if I don’t appreciate you it should be my mistake or something disappointing for you. Great job keep it up.
    trading seminar