"The market has been belted up by the bear trying to get us in the last 21 days… But this afternoon we stood up and shouted…We’re BACK !!!!
Today was one of those rare days that you will never forget –we saw the greatest one day recovery in the Australian market where the ASX 200 rallied +268 pts or +7.11% from its low and closed higher, up +1.22% on the day – I have never seen anything like this before – it was truly extraordinary...
Early on we saw more carnage with the ASX 200 smashed -225 points or -5.5% early on, after last night’s -6.6% collapse in the S&P 500 - its largest drop in nearly three years on rising fears of a recession exacerbated by the United States' loss of its triple-A credit rating. Also every single one of the S&P 500 stocks closed lower in US last night – this not seen since 1986...
So the scene was set for a shocker & with margin selling mid morning...But we saw big instos buying slowly enter the market in arvo ASX200 rallied +268 points off its low to close up +48pts or +1.22%, which was a great performance after a morning rout that saw the us hit a low of 3765 -220 points or -5.5%. Other mkts followed....Korea rallied +8.5% of its low and China was +3.8% off its low and China was up when we closed...
This Table from Matt Ross, shows the largest intra-day moves on the ASX 200 for the past 35 years on days where the market ended up being within +/-1% on the day. Puts some context around the change in sentiment today and how the instos were really prepared to come in and buy this dip. The volatility was something that even all the oldest guys on the desk said they had never experienced like this before..."
