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Why the drop?

  1. Anyone knows why did NDX dropped 20 points in one hour?
  2. Big Fades Can Take a Toll
    6/7/05 2:18 PM ET
    The frantic buying this morning has given way to some profit-taking this afternoon. It is primarily caused by the simple fact that the market is extended. There is no bad news and nothing negative. We just have a somewhat overheated market that is badly in need of a rest.

    Big intraday U-turns like we are seeing now are often indicators that the market is topping out, but we'll have to see how we close before we can draw any major conclusions. Big fades take an emotional toll on buyers, so they can't be blithely ignored.

    We still have solid positive breadth, which is a major plus, but profit-taking has definitely kicked in.

    Real money commentary
  3. profit taking!! lol thats hilarious.

    the profit taking occurred in the trading range after the rally.

    journalists dont know their arse from their elbow - or theyd be traders!!!
  4. 14:16 Floor Talk: Hearing weakness in equity markets attributed to Fed's Guynn saying he's uncomfortable with speculation in housing.

    14:26 Guynn's Comments

    Approximately an hour ago, Atlanta Fed President Guynn said that: "In some markets -- I won't name individual cities in the Southeast -- the activity in residential real estate looks pretty speculative to me and the makes me very uncomfortable. I don't think this is sustainable. There is a very good chance that some lenders, some buyers and some builders will get burned from what I see in some of those submarkets." As mentioned at 14:16, this seems to be contributing to the afternoon sell-off in the equity markets.
  5. Thanks God for the drop.... My June puts had me worried...
  6. So it’s the Florida real estate bubble talk…
  7. So weakness in Florida real estate was reason the techs were weak all day then droped like a rock?
  8. who gives a shit what the reason is.

    just go with the flow
  9. Makes no sense, if its a regional issue, eg, south-east, is he saying a repeat of texas is coming or just a casual comment from his eyeball of the statistics?

    imho, a large fund hit the weaker mkts after lunchtime, rolled into stops and the mkt faded.
  10. 15:02 Floor Talk: Hearing a futures selling error in the Midcap 400 may have contributed to afternoon sell-off in market averages

    See also 14:26 comment.
  11. 'They' want to give the little guy another chance to buy the dip!:p
  12. I think Greenspan scratched his ass. That was worth a couple ticks, too.

  13. :D :D :D :D

    yea - then take him to the cleaners again!!

    double wammie
  14. Market has been on good little run of late. If spoos break back below 1200 this afternoon I think we get a few down days. Shorted CFC on that last pop.
  15. Chat room gurus with their 500 contract lots are at it again. :D :D
  16. me no guru, just a lonely trader. So I have nothing to sell. Covered short too soon, again. We just broke 1200, so it's time to say......"Good night, Irene":D
  17. LOL! And of course lets not forget maintaining their 100% bullshit perfect trading record whilst trading such lots, in between abusing any of their students who dare to question or challenge their methods. :eek:

    How they find the time to move the markets, we'll never know
  18. Reaction to Consumer Credit released at 2:00 EST

    Consumer Credit + 1.3B in April

    The Board of Governors of the Federal Reserve System has posted the following item(s) to the web site:

    Statistical Release
    G.19 Consumer Credit: June 7, 2005

  19. only suckas ask why...who really cares...unless you need to rationalize why your teeth may have got kicked in...either way u still have broken teeth....the why's and how comes dont matter....does anyone on this site actaully trade??? thank god for the posts on ET let me know all my time in this biz have not been wasted...good for some laughs thats it....
  20. Yes, keep on buying and buying ...

    Hint: Q2 earnings around the corner.
  21. From time to time people tries to give a reason to why the mkt moves in a particular way, especially after the fact that the move has moved in a single direction with a decent size, like the NQ move today of about 20 pts.

    Most of the time though, the after the fact explanations cannot really explain what happened :)

    After seeing so many moves like that over the years, I am ... speechless :)
  22. The best way to explain these moves is to randomly take a headline from the front page of your favorite paper and connect it to the price change.

    For example,

    DOW drops 100 points (roughly today's intraday move) because GM to Slash 25000 jobs.

    It helps to randomly select a headline that has some bearing on economics. While it is no more true than to pick another of today's headlines:

    DOW Drops 100 Points today because Experimental Ebola vaccine works in monkeys.

    Neither really explains the drop but the GM story sounds more credible as it has something to do with economics and losing 25k jobs sounds scary.


    ps- as a trader do you really care?
  23. I was actually wondering about that too? I mean it was my thought that markets only go ONE direction. But... I guess they don't................ they go up AND down.

    Wow I was beginning to worry.

  24. No, no....you're thinking of Google. GOOG only goes up. Wait til the market considers the synergies of Google acquiring Microsoft -- then GOOG will really take off! :D
  25. I saw a big red truck go by at the exact time the market collapsed in a dramatic meltdown of almost biblical proportions.

  26. Of course it goes both ways.
    Actually I was short (ever since oil went above 50, not a good trade yet), and was pretty much sure I was going to have a down day.
    Oil was falling, bond yield was falling, and consequently stock market was rising. And then wham! I was just curious what made my day. Unlike others I actually believe that stock prices are being driven by some things other than support , resistances, trends and whatnot ..
  27. And don't forget the 30-Year Bond Futures. It only goes one way. Up, Up and Away.