The Charts: 2007 Vs 1987 Crash

Monday, 15 Oct 2007 | 7:59 PM ET

If you're feeling jittery after Monday's market action, it probably won't make you feel much better to know that this month marks the 20th anniversary of black Monday - the infamous market crash of 1987.

Louise Yamada joins the panel to help untangle any knot you may have in your stomach. For years, Yamada has been the #1 ranked technical analyst on the street.

Does the market today remind you at all of the market in October '87?

The similarity is the negative divergences in the number of new highs vs. new lows, Yamada’s explains.

Black Monday- 20 Years Later
Eyeing similarities between the Dow in 1987 and 2007, with Louise Yamada, technical analyst, and the Fast Money crew.

But what’s different she says, is the Fed. They raised rates 3 times into 1987 (from 6% to 9%); today, however, the Fed has lowered - from low levels to even lower levels.

She feels the differences outweigh the similarities, however, she’s closely watching for signs of a downturn and expects to know more in a about a month.

On a related note, Yamada presents the panel with a trade. She likes Broadcom (BRCM) for its chart. She also says tech stocks are very selective and she doesn’t recommend trading them across the board.

Pete Najarian agrees.

  Price   Change %Change
S&P 500

Got something to say? Send us an e-mail at fastmoney-web@cnbc.com and your comment might be posted on the Rapid Recap! Prefer to keep it between us? You can still send questions and comments to fastmoney@cnbc.com.


Contact Fast Money

  • Showtimes

    Halftime Report - Weekdays 12p ET
    Fast Money - Weekdays 5p ET
  • Melissa Lee is the host of CNBC's “Fast Money” and “Options Action.”

  • Scott Wapner is host of the "Fast Money Halftime Report," which airs weekdays from 12 p.m. to 1 p.m. ET.

  • Guy Adami is a contributor on CNBC's "Fast Money." He also is managing director of stockMONSTER.com.

  • Najarian, the "Pit Boss," is cofounder of optionMONSTER.com, a news site for options traders.

  • Finerman is president of Metropolitan Capital Advisors, Inc., a company she co-founded.

  • Founder of EmergingMoney.com

  • Chief Market Strategist for Virtus Investment Partners & CNBC Contributor

Halftime Report