We only need to trade 40 points below today's low to bring that to an end. The words hot knife and butter spring to mind... But you're right - it's a traders' market right now and you need to trade each day as it comes.
When the word panic comes up, the words circuit breaker, comes up. Included are some links. Like the chart I just posted, they are for entertainment purposes only. {An attack during market hours could cause a crash in the Dow (S&P, etc.). One has to be aware that the long term chart of the market you're looking at was the PAST. It doesn't really mean anything for today's trading.} http://www.nyse.com/press/circuit_breakers.html http://www.sec.gov/answers/circuit.htm -Stephen
My opinion is the economy is somewhat strong, the dow will hit 10% off the highs, people will see it as the correction they were looking for and then they will start buying. Back at 14,000 in less than two months. Or it really is the start of a bear market, some other bad news will come out driving the market lower still, and before you know it we are below 10,000. its definitely one of those two options. I think. Or maybe its something else. And I am firm on that.
I think the market will definitely go up. Without a doubt it will rise significantly. Huge run. Unless it goes down
No not even a correction yet actually. A bear market is long away. uS economy stronger than ever. peopel still spending tons of money on conumer goods.We got people in universities. We got food distribution. We got construction and free trade. We got trucks and shipping. Nothing has changed at all. We got credit card companies still continuing to gouge people. We got people flying still. We got people going to the baseball and football games. People still buy Dell Cmputers Ipods and plasme TVS. As I said before not a big deal. when the dow goes back to 14000 all those stocks will come roaring back to life
Did you ever hear of the "Roaring Twenties"?? Well it was this great time during the big bull market of the 1920's. Everyone was having a swell old time and nothing bad could possibly happen. Oh wait, then the stock market crashed.
I'm pretty sure we had all that shit when the Nasdaq fell 80% too. Go sell your bullshit elsewhere. Oh, I called Kudlow for you, you're booked for friday.
It's prudent in my opinion to plan on a market crash in the next sesssion. (And the next and the next, etc.) I don't expect that, it's just good to have a plan for it. A market crash could have easily occured on 9-11 had the attacks occured during the middle of the day, and only at Washington D.C. (That is, not in New York.) But as they say though, "History repeats itself, but history doesn't duplicate itself." One only has to look back to 1987 for the last (big) crash. No terrorist attack then. Modern times as well. ======================================== On âBlack Mondayâ, October 19,1987 the Dow Jones Industrial Average plunged over 500 points in a drop of over 20%. http://www.lib.uwo.ca/business/crash87.html ========================================= A real trader's experience: The high in the S&P on Monday was 269. I liquidated my long position at 267 1/2. I was real proud of that because it is very hard to pull the trigger on a loser. I just dumped everything. I think I was long 40 contracts coming into that day, and I lost $315,000. ...Even retreating is offensive, because you are still doing something. It is the same thing in the market. The most important thing is to keep enough powder to make your comeback. I did real well after October 19. - Marty Schwartz (from Market Wizards) ======================================== Hey, a list of crashes here: http://en.wikipedia.org/wiki/List_of_stock_market_crashes -Stephen
<i>"Nothing has changed at all."</i> That's very true. Not much has changed... except that reality has finally hit the market square on. Inflation is rampant. Unless you back out food & energy from your actual budget, inflation is crippling lower and middle class. There's your answer to why WMT "just had a bad quarter". Think that was a lone stumble? Wait until this shopping season gets tallied. How liquid do you think WMT base customer clientele is with gas & oil and food rocketing? Add to that ARM resets and it gets real tight for those who subsist on a thin budget already. Food prices reflect the price of oil. It takes lots of oil to produce foods, from fertilizers and fuel to grow feed to transportation of meats and grains several times over. Corn tonnage diverted to ethanol and soybeans = crush diverted to syn diesel put pressure on our entire food chain cost. Think that's not true? Just keep buying the same exact foodstuffs you have been, and watch where those stickers go from here. Last year was a mild winter. One bitter cold one here in the northeast and fuel oil costs will stagger. Can always tap into the home equity to bridge across until better times? Nope... those bridges just went up in flames. Subprime isn't contained, it's barely been unwrapped yet. The bulk is yet to come, by far. Real estate prices making a U-turn comeback real soon? Carry trade financing more debt-laden M&A crap? Oil going to <$50 bbl? Credit market finding new liquidity under a mattress somewhere? Fed cutting rates between meetings? Check the charts in Jan and Apr 01 to see how that ploy fared. * Yup, markets are stronger than ever. Economy is great. That's why the S&P dropped -150 points on huge volume. It's all just a minor blip before they return to a steady procession of new market highs. Hold those long positions with stubborn resolution. Do that. The market itself will explain things to you very clearly with no uncertainty, sooner than later.