Monday, December 1, 2008

Dow plunges 8%

The recent rally in stocks came to an abrupt end today as stocks sold off sharply. The Dow opened gap down and kept falling through the day to end at 8149 while the S&P closed at 816. Indian stocks enjoyed decent gains early on as the Nifty rose above 2800 but fell through the afternoon and lost 2% over the day. The Nifty ended the session at 2682 while the Sensex stood at 8839.

As it turned out, the Venus-Jupiter conjunction lost its benefic strength a litttle earlier than expected. I had thought that we would see more upside today just as the aspect was perfected. However, the negative energy of the Mars-Ketu aspect took precedence and put an end to the rally. I don't think we're headed straight down from here and we should see some significant up days later on in the week. But Dow 9000 and Nifty 3000 looks increasingly improbable now as the shadow of that Scorpio New Moon is looking very foreboding.