This selloff is ridiculous

Discussion in 'Trading' started by Kicking, Sep 29, 2008.

  1. I cannot believe this! Some plan is going to pass soon or later.
    Why is it selling off like this ? I am getting hammered, got long the day before the bailout and added later. I am sick of it.
  2. dsq


    falling knife catcher?load up this wednesday on out of money calls?
    straight gambling...temptation is there...
  3. it's very simple

    they're going to re-schedule a vote, and they're softening up the opposition

    never underestimate a railroad job
  4. I don't think the market can outright crash on politics, slow grind down yes but these huge gyrations ... a bottom has got to be very close. F*ck it, I will have the honor or being long the crash, my account can weather it at these levels and 50% in stocks.
    I am just absolutely disgusted. I am probably not alone. I would never have gone long without these f*cking politicians messing with the market. I had just gotten out two days before for a loss after picking a previous bottom, then reentered on Thursday 18.
  5. jem


    I wonder how much of that selloff is from the institutions hoping to be bailed out. That could be Goldman and others trying to raise capital since they are not going to be given it by Paulson.
  6. there is no doubt that the markets are trying to goad the government into acting.
  7. It just did.
  8. It's the end of the quarter.
    Funds trying to get more liquid for upcoming redemptions.
  9. sumosam


    Absolute panic selling. When I hear the media saying the world is ending...I tend to believe the opposite.

    I have seen this happen over and over. You see the market turning, then Bam! Huge drop .... and then, viola up up and away. The bottom of the market is when all the bad news is in. Perhaps there will be more...but a reveral at some point is in the cards. With the Vix at 40+ only a fool or the weak hands sell out.
  10. huh


    Actually if you step back away from the deceiving 106 point drop on the S and P you can see that this really is not a big drop. Take a look at the S and P low on Sep 18 which was around 1133 and that day we got some BS reversal and the market bounced higher on the basis of CNBC news announcing a possible bailout plan. So the run up off 1133 on the 18th was due to the bailout being priced into the market.

    Now the bailout is gone for now so we are about 20 or 30 pts below where we started. I think the real level for S and P should be around 1120 - 1130 until the plan actually passes. Obviously the longer this bailout takes to pass the more likely we will head lower. The main fear at this point is that if joe6pack decides to start selling the old 401K all at once that could cause a big problem......but when this happens then I"d be willing to call a bottom once the avg person starts dumping their 401k....
    #10     Sep 29, 2008