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Dow Jones Bloodbath Mirroring 1929 Rout

Posted By admin On October 16, 2008 @ 4:55 am In Featured Stories,Paul Watson Articles | Comments Disabled

Bottom should be around 27 per cent below “bailout bounce” according to analyst

Dow Jones Bloodbath Mirroring 1929 Rout 161008top

Paul Joseph Watson
Prison Planet [1]
Thursday, October 16, 2008

A comparison of the current Wall Street crash with the events of 1929 shows that the Dow has at least another 27 per cent drop below the bailout bounce before it bottoms out, despite another rout yesterday after which the Dow had lost over 700 points.

“In 1929 we saw a two day rally of almost 19 per cent followed by a decline of 6 per cent and finally from the recovery high we lost 27 per cent,” Edward Loef from Theodoor Gilissen Bankiers told CNBC this morning [2].

That two day spike has been replicated by events at the start of this week before the Dow crashed again yesterday and is set to suffer again today.

Dow Jones Bloodbath Mirroring 1929 Rout 161008dj1
A comparison of the two charts indicates that the Dow has not bottomed out, as many traders are claiming.

Dow Jones Bloodbath Mirroring 1929 Rout 161008dj2
At least one more significant plunge is anticipated.

“If you look at the Dow Jones index in this context we’ve seen also a two day rally which managed to recover almost 24 per cent from its Friday low and yesterday we saw renewed selling pressure so I think when history is our guide you should expect another decline until we have a bottom of 27 per cent below the recent bailout bounce, which I expect will be by the end of next week because the new lows in 1929 was in duration 7 days since the bounce we saw then and now,” said Loef.

Dow Jones Bloodbath Mirroring 1929 Rout 161008pptv2 [3]

Loef’s predictions have proven accurate in the past. On September 18th he predicted [4] that the Dow would sink to 8,0000 within a month at a time when it was around 11,000. The Dow has just another 500 or so points to fall before Loef is proven accurate in his forecast.

U.S. stocks dropped the most since the 1987 crash yesterday after a report confirmed the economy had suffered its biggest drop in retail sales in three years.


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URLs in this post:

[1] Prison Planet: http://prisonplanet.com

[2] told CNBC this morning: http://www.cnbc.com/id/15840232?video=892188181&play=1

[3] Image: http://www.prisonplanet.tv/subscribe.html

[4] On September 18th he predicted: http://uk.youtube.com/watch?v=xOZ3nmoWV-c

[5] Global share rout continues: http://www.prisonplanet.com/global-share-rout-continues.html

[6] We Are Less Prepared for a Depression Than We Were in 1929: http://www.prisonplanet.com/we-are-less-prepared-for-a-depression-than-we-were-in-1929.html

[7] Nothing Can Stop It: “An Economic Collapse that is Going to be Worse than 1929″ *Video*: http://www.prisonplanet.com/nothing-can-stop-it-an-economic-collapse-that-is-going-to-be-worse-than-1929%e2%80%b3-video.html

[8] World Economy Falling Faster Than in 1929-1930: http://www.prisonplanet.com/world-economy-falling-faster-than-in-1929-1930.html

[9] Merrill CEO: Economic Environment Recalls 1929: http://www.prisonplanet.com/merrill-ceo-economic-environment-recalls-1929.html

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