Is there anything to stop a capitulation Tuesday?

Discussion in 'Trading' started by womblevader, Jul 15, 2008.

  1. Looks pretty bad

    1. Future are down across the board
    DOW below 11,000
    S&P has dipped below 1220

    2. USD has dropped steadily since Monday market close.

    3. There are supposedly a lot of stops to be triggered just below these levels.

    On the positive side
    1. It looks too easy
    2. There will be a "lot" of short positions already.
    3. No really bad news expected today [so far].
    4. Markets don't always do what they are supposed to.
    5. Gold is stable.

    Does anyone know of anything that will prevent a meltdown tonight [besides PPT]?

    Thanks in advance.
  2. How about Paulson giving a speech saying "we believe in strong dollar?" again for the umpteenth time :D
  3. When did futures trade under 1220.00?
  4. jgold310


    I never saw the futures trading under 1220. The lowest I saw was about 1221
  5. My provider shows it under at 3:53GMT or 10:53EDT.

    Globex has the SPu8 at 1220 exactly at the same time.

  6. rcj


    20.25 = low, so far. at 21 right now.
  7. And again at 1:18....
  8. We need to move down to 9,625 on the Dow, 1985 on the Nasdaq and 1075 on the S&P to have a clean base.

    Hopefully, by that time, all the weak financial actors will have been taken out, interest rate policy will be supportive of price stability and a strong USD, wage increases will at least match inflation, and much of the fear and panic that exists now about retirement savings, the stability of banks, clear governmental policies by whatever party and candidates will have been voted into office will emerge, the trend in employment will be up, and a bottom in housing values will be in.
  9. I agree many of those factors would help, but it would be the first time in history for the market to wait for unemployment and home prices to turn positive before finding a bottom.
  10. True. 'Equity markets are forward discounting mechanisms.'

    Cliche, but true.
    #10     Jul 15, 2008