How to Wreck Your Weekend: Ponder Black Monday

There’s an old saw in the stock market about how the trend on Friday sets the stage for what happens on Monday. (The theory being that traders go home a bit giddy or nervous, and after 48 hours of ruminating on their condition, come back to work on Monday absolutely lathered up with greed or fear). 

Statistically, this is probably a crock–most old market saws are–but then again, they don’t call it “Black Monday” for nothing.  So, as you head home for your weekend, here’s a suggestion.  Don’t read the numbers below.  And, when you get home, hit the scotch.

DJIA Closes Mid-October 1987:

Tuesday, October 13:       2,508
Wednesday, October 14:   2,413
Thursday, October 15:      2,355
Friday, October 16:          2,247
Monday, October 19:       1,739

Total Tues-Fri decline:  10%
Total Monday decline:  23%
Total 7-day decline:     31%

DJIA Closes Early November 2007:

Tuesday, November 6:          13,667
Wednesday, November 7:      13,300
Thursday, November 8:          13,266
Friday, November 9:               13,043
Monday, November 12:            ?

Total Tues-Fri decline:  5%
Total Monday change:   ?
Total 7-day change:        ?

And now, dear Nostradamuses, SAI readers, it’s time to place your bets.  Before the market opens on Monday, please enter your best guess at Monday’s close in the comments.  As usual, we’ll place the winner’s name in lights.  Have a great weekend.

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