so here's a ridiculous thought.... The end of the week is "rollover"... Which way will inflict the most damage to the most people?
Not a word from @Rickshaw Man since the 26th of February, i.e., 400 points ago. Still there, Rick? While S&P 500 were 'risk free' for quite a while, i.e., every dip was bought and we had a long period without any significant downdays rewarding long-traders or BTFD handsomely - all those profits could easily be eradicated very quickly if such a trader bought this dip and kept buying it on leverage. Not saying this happened to Rick and I hope he made out okay. I know he was short a little while back, so hopefully he's been doing that this time too.
We have got to the point where a 1000 pt down day no longer feels very big. Even 2000 pts down would no longer be shocking. Only that 20% down move might have some shock value now. That would be 5000 pts downs. I dont expect it to happen though.
Wow, down another 4-5%, the core is still exposed. Things won't stop until the helicopters, with enough stimulus, arrive and then it's a wait and see what happens next. Rumor has it that Kudlow dismisses the big drops as "Not great. Not terrible." Carry on comrades.
This is the point where rational long term investors pick up quality stocks and ignore the news and a lot of people on the internet ( including here ). Anyone buying something like TD at these levels can expect a low risk play on capital gains and get a 6% yield that will not be cut ( ever ) while they are waiting. Many value stocks haven't really participated in market moves last few years. It doesn't matter what the indexes do buy the good stocks that got hammered by the index related sales unfairly. Generational buy opportunity like March 2009, December 2018.
DOW closed as a bear market. Russell 2000 closed as a bear market (was down 27% from ATH at low point today) Nasdaq Composite moved into bear market intra day but rallied above going into the close. Only S&P 500 and NDX not gone bear yet.
Another pretty day... Let's see the fed do another emergency rate cut ahead of next weeks fed meeting....think Europe is on the table this morning for more rate cuts.