Tuesday, October 13, 2009

September 3, 1929: Dow reaches peak of 381.17.  

Thursday, October 24, 1929 Initial Stock Market Crash day that included wild swings.  Near the end of the day, several large traders got together and bought US Steel stocks at above-market prices to reverse the slide. 

Over the weekend, the newspapers printed what had happened on Thursday.  Monday brought the beginning of the big crash & slide into the Depression.

Monday, October 28, 1929  Dow down 38.33, -12.82%  closing 260.64

Tuesday, October 29, 1929 Dow down 30.57, -11.73%  closing 230.07

 Interim Bottom: November 13, with the Dow closing at 198.60
May 1, 1930:
“While the crash only took place six months ago, I am convinced we have now passed the worst and with continued unity of effort we shall rapidly recover. There is one certainty of the future of a people of the resources, intelligence and character of the people of the United States – that is, prosperity.”
     – President Herbert Hoover
April 17, 1930:  Dow regains interim 'high' of 294.07.  This is now known as a 'dead cat bounce' or a 'bear rally.'

June 29, 1930:
“The worst is over without a doubt.”
     – James J. Davis, Secretary of Labor.

Dow begins to slide again.
April: Cumulative Movement- 171 down to 151. 
May: Cumulative Movement- 145 down to 128.
June 9, 1931:
“The Depression has ended.”
     – Dr. Julius Klein, Assistant Secretary of Commerce.
July 8, 1932:  Dow closes at 41.22.  This is a cumulative 89% decline from the peak.
The Market did not return to pre-1929 levels until November 23, 1954.

July 19, 2007:  Dow 14,000

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