In the middle part of the day, the market is bouncing off its lows. I was listening to a financial news program in the background and heard the anchor say that while the Dow Jones Industrial Average was off its low, it was still below the psychologically key 8,000 level.
This a big time pet peeve of mine. I haven't spoken to a single professional over the past month (or year) who has indicated they even see or care that a round number has been breached -- in either direction. In addition, very few individual investors are trading the market now, which takes that component out as well.
In my view, 8,000 has zero technical, psychological or fundamental importance, but gives talking heads (like me) something to say when there is nothing new to say. It also gives financial media something to ask us about when they are tired of asking the same old questions.
The whole issue reminds me that I have another interview scheduled with WNN (Whacko News Network). I will put transcript in the Gazette as soon as it becomes available.
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