Words That Begin With "R"
It only took one day for Greenspan's recession concerns to have some impact on the global stage. The Shanghai Composite Index fell 8.8% today. Its biggest drop in a decade. It was also reported that durable goods orders fell 7.8% in January. While they were marginally higher than a year ago, it was the lowest tally since then. As I write this, the ripples have found their way to Wall Street. The Dow has dropped by over 250 points and the Nasdaq by 75. Even my speculative portfolio is down 6% today. So is it self-fulfilling prophecy, a market correction, or an excellent buying opportunity? Take your pick.
And once again the administration is dabbling in revisionist history. The Saddam - Hitler comparisons just never die. On Sunday, Condoleezza Rice either displayed ignorance of the facts regarding World War Two or decided to just be a team player and follow the revised edition. Keith Olbermann corrected her last night.
10 PM Update: Cramer wrote a brief piece entitled: "How The System Failed Us Today". I'll have to tune in to the midnight re-broadcast of his Mad Money show to hear what else he has to say. No, I don't trade on Cramer's whims, but I do find what he has to say interesting, unlike his former co-host Larry "Curmudgeon" Kudlow.
And once again the administration is dabbling in revisionist history. The Saddam - Hitler comparisons just never die. On Sunday, Condoleezza Rice either displayed ignorance of the facts regarding World War Two or decided to just be a team player and follow the revised edition. Keith Olbermann corrected her last night.
10 PM Update: Cramer wrote a brief piece entitled: "How The System Failed Us Today". I'll have to tune in to the midnight re-broadcast of his Mad Money show to hear what else he has to say. No, I don't trade on Cramer's whims, but I do find what he has to say interesting, unlike his former co-host Larry "Curmudgeon" Kudlow.
posted by DED at 2:26 PM
13 Comments:
The DJIA was down over 500 pts (4%)shortly after 3pm today. If this keeps up I will know what is like to feel like a "hobo" (I love that comment from the prior post btw). I prefer to view this as "healthy" and of course a buying opportunity...The glass is still half full.
500! Holy shit! What caused that sharp drop? I see it's recovered somewhat to the 300's.
Plunge Protection Team must've kicked in.
Many the reasons: china stocks off 9% which triggered other world markets in europe +asia (ripple effect), cheney targeted, subprime lending concerns (financial sector was off the most), emotion, NAMBLA...
Also, for full disclosure from my last post, although I took cover today I do anticiate executing some buy orders tomorrow.
No, I wanted to know why the sudden drop from 250 to 500. The decline of 250 was holding steady and then, about 3 or so, the bottom dropped out and it was down 500 in no time.
I don't think Tom Petty had the stock market in mind when he wrote "free-falling", but it would be an appropriate song request today.
I think it may be the avalanche theory. A lot of leverage on the margins, they couldn't take the heat, so they are getting out of the kitchen. This correction is long overdue, I was a bear back in July when the Dow was at 10,500, so I guess I'm not as smart as I think I am. We'll see, better to wait awhile before adding to your position, just my $0.02.
Ouch. Condi failed Mr. Olbermann's history class, huh?
As to the Dow (and Nasdaq & S/P), let's wait and see how the week plays out. We all (meaning DedZone readers) know the recession began a while back, and that the PPT exists, etc.
But let's see how it plays out in the near future. China got hammered too.
I wanted to know why the sudden drop from 250 to 500.
Ok, I may have found an answer to my own question. Word is that the NYSE couldn't keep up with the volume today (I haven't checked the volume so I don't know if they're blowing smoke). They switched on a back up machine which enabled them to catch up, which was reflected in the sudden drop.
Rumor is that traders were booing at the close of the day because there were alot of unprocessed orders. So some are speculating that the sell off will continue tomorrow, unless the buyers have their way.
Condi failed Mr. Olbermann's history class, huh?
Apparently she was daydreaming about being the NFL commissioner.
Ded, I heard the boos, I didn't know why they were booing though... Thanks.
You beat me to it DED. I saw Mad Money last night and Cramer gave an nice summary. I typically take everything he says with a grain of salt, but I give him credit for his uncharacteristic toned-down and somewhat insightful analysis.
Today, so far so good. Caution appears to be the name of the game.
Actually, another stock market bubble may be a much larger risk than a recession. Strange but true.
another stock market bubble may be a much larger risk than a recession
Absolutely. A recession is the medicine. Another bubble's a relapse.
Bad-tasting medicine, but medicine nonetheless.
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