Trading Perspectives -
Historical Events,
Market Behaviors
and Human Nature

"Trading Perspectives"

On Market Behavior

Circa 1900:

At 11:15 .... I began to give him sell orders in various stocks. ... The traders hammered the stocks in which they figured they would uncover the most stops, and, sure enough, prices slid off. I closed out my trades just before the rally of the last five minutes on the usual traders' covering. 

Jesse Livermore,
Reminiscences of a Stock Operator

1929 and 1969-70:

Before the crash in 1929, the financial sages had insisted repeatedly that there couldn't be another panic like that of 1907 because of the protective role of the Federal Reserve System; before the crash of 1969-70 a later generation observed repeatedly that there couldn't be a panic like that of 1929 because of the protective role of the Federal Reserve System and the Securities and Exchange Commission. In each case a severe market break had taken place about eight years earlier (in 1921 and 1962 respectively), followed by a period of progressively more unfettered speculation.

John Brooks
The Go-Go Years

May, 28 1962 Blue Monday:

For several weeks in succession, the market slumped ominously, until the week of May 21-25, saw the worst decline in any week for more than ten years. And then, on May 28, the day that has gone down in Wall Street as Blue Monday, the Dow average dropped 34.95 points, a one-day collapse second in history only to that of October 28 1929, when the loss had been 38.33.... Twenty billion dollars in paper values that had existed in the morning had evaporated by evening. 

John Brooks
The Go-Go Years

Oct, 19 1987 Black Monday:

Technically, the crash of 1987 bears an uncanny resemblance to the crash of 1929. The shape and extent of the decline and even the day-to-day movements of stock prices track very closely. 

George Soros

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