DOW DROPS BELOW 11,000

[yougo1000]

http://www.moneycontrol.com/news/international-markets/dow-slips-below-11000european-debt-worries-down-225pts_455698.html

hope this doesn't end up to be worse.

[Beet]

Amazingly good news in US earnings, manufacturing, labor market, housing, etc. has been pouring out in recent weeks and this has hid the extent that the Greek crisis has been affecting the US market. Without the Greek crisis, the Dow would be in the 11,500-12,000 range already.

[Grumpier Than Uncle Joe]

11,000 has no statistical significance.

[You kip if you want to...]

Dow drops below 10,000...

[phk]

Dow drops below 10,000...

Only for a brief moment...

Btw. Only 30 companies are in the Dow. So its not that large or representative of an index.

One could probably create a never-falling index if you continuously choose which companies to put in and which ones to remove, would have an amazing effect on consumer confidence and consumer sentiment indices.

[Sam Spade]

Really annoyed that I missed this play off the highs last week, but I've been too busy.  Also didn't think the move would go this far, fyi. (expected 1150)

[You kip if you want to...]

I'm assuming that there'll be another massive drop tomorrow.

[patrick1]

Somebody screwed up- Had to be a system errors.  

[Sam Spade]

Somebody screwed up- Had to be a system errors.  

When bears lose money because things go up, it's always "manipulation".

When bulls lose money because things go down, it's "reckless shorting" or "market errors".

Those who keep conspiracy theories in mind would also note that the "bounce" occurred just a few points before we hit LLD.

[patrick1]

Somebody screwed up- Had to be a system errors.  

When bears lose money because things go up, it's always "manipulation".

When bulls lose money because things go down, it's "reckless shorting" or "market errors".

Those who keep conspiracy theories in mind would also note that the "bounce" occurred just a few points before we hit LLD.

There was a mistake on P&G trade- this is a fact.

[Beet]

Somebody screwed up- Had to be a system errors.  

When bears lose money because things go up, it's always "manipulation".

When bulls lose money because things go down, it's "reckless shorting" or "market errors".

Those who keep conspiracy theories in mind would also note that the "bounce" occurred just a few points before we hit LLD.

There was a mistake on P&G trade- this is a fact.

If it was a mistake, why is the Dow still down 350 after being down 800 since a few weeks ago?

To me, this is even scarier than September '08. Why? Because in September '08, we all knew what was wrong. We all knew that the huge housing bubble had blown up the banks. The credit crunch had been going on for months and months and months.

In contrast, today, there was no evidence credit crunch until about the last 2 weeks. There was only evidence of a debt crisis in one small country of 13 million people plus a lot of anti- bailout and anti- austerity populism. All of a sudden, Spanish and Italian bond yields are blowing up, and Moody's is warning about a UK crunch. Seemingly out of nowhere.

Blaming this on a P&G quote is like blaming the fall of the WTC collapse on a misplaced beam or blaming Pearl Harbor on firecrackers. This is WAR, and unless global central banks understand this, they will continue to lose.

[Sam Spade]

I'm assuming that there'll be another massive drop tomorrow.

I wouldn't assume that.  Just as likely is a major rebound, especially if what I think is going on is going on...

[Torie]

I do notice that I have lost an unpleasant amount of money this week. In fact on one day, the number was quite "impressive."  Losses are in red, and well other than the bonds, it was just all red on my computer screen. It kind of hurt my eyes.

[patrick1]

Somebody screwed up- Had to be a system errors.  

When bears lose money because things go up, it's always "manipulation".

When bulls lose money because things go down, it's "reckless shorting" or "market errors".

Those who keep conspiracy theories in mind would also note that the "bounce" occurred just a few points before we hit LLD.

There was a mistake on P&G trade- this is a fact.

If it was a mistake, why is the Dow still down 350 after being down 800 since a few weeks ago?

To me, this is even scarier than September '08. Why? Because in September '08, we all knew what was wrong. We all knew that the huge housing bubble had blown up the banks. The credit crunch had been going on for months and months and months.

In contrast, today, there was no evidence credit crunch until about the last 2 weeks. There was only evidence of a debt crisis in one small country of 13 million people plus a lot of anti- bailout and anti- austerity populism. All of a sudden, Spanish and Italian bond yields are blowing up, and Moody's is warning about a UK crunch. Seemingly out of nowhere.

Blaming this on a P&G quote is like blaming the fall of the WTC collapse on a misplaced beam or blaming Pearl Harbor on firecrackers. This is WAR, and unless global central banks understand this, they will continue to lose.

I was  pointing out that the 1000pt drop was illusory. There are pullbacks and some profit taking.  There is also PANIC which clearly you exhibit- stick to decaf, bro.

[Beet]

Uh, yeah, when the birthplace of the industrialized world whose governments have never had a downgrade from 1945 to 2009 suddenly looks like it no longer has the political will to pay off its debts, it's just a teensy weensy bit disturbing, don't you think?

[Joe Biden 2020]

I'm assuming that there'll be another massive drop tomorrow.

I wouldn't assume that.  Just as likely is a major rebound, especially if what I think is going on is going on...

NBC Nightly News predicted another volatile day tomorrow, and I assume that it will go the wrong direction, but you are right, Spade, that it could go north.

[Joe Biden 2020]

I do notice that I have lost an unpleasant amount of money this week. In fact on one day, the number was quite "impressive."  Losses are in red, and well other than the bonds, it was just all red on my computer screen. It kind of hurt my eyes.

My company stock which recently switched from Nasdaq to S&P was trading near $51 on Monday, but has lost almost $4.50 in the past 3 days, $2.07 just today, and down to $46.xx.  I don't have any invested in there, yet, so I'm not fretting, but I will probably invest in 2011, so I'm really watching.

[Sam Spade]

I'm assuming that there'll be another massive drop tomorrow.

I wouldn't assume that.  Just as likely is a major rebound, especially if what I think is going on is going on...

NBC Nightly News predicted another volatile day tomorrow, and I assume that it will go the wrong direction, but you are right, Spade, that it could go north.

Got the direction wrong, but I'm now almost certain as to what's going on.

[opebo]

Got the direction wrong, but I'm now almost certain as to what's going on.

No one cares that you are almost certain what is going on.  We might care to hear what you think is going on, but just knowing you think you know something is going on is pretty well nigh useless to us.

[phk]

I do notice that I have lost an unpleasant amount of money this week. In fact on one day, the number was quite "impressive."  Losses are in red, and well other than the bonds, it was just all red on my computer screen. It kind of hurt my eyes.

My company stock which recently switched from Nasdaq to S&P was trading near $51 on Monday, but has lost almost $4.50 in the past 3 days, $2.07 just today, and down to $46.xx.  I don't have any invested in there, yet, so I'm not fretting, but I will probably invest in 2011, so I'm really watching.

You should look at the company's history and identify support and resistance levels.

[Sam Spade]

Got the direction wrong, but I'm now almost certain as to what's going on.

No one cares that you are almost certain what is going on.  We might care to hear what you think is going on, but just knowing you think you know something is going on is pretty well nigh useless to us.

I like being vague, but here I'm not.

I'm almost certain what caused the crash yesterday was EUR/JPY carry unwind very similar to what we had in all of September/October 2008.  Caused a positive feedback loop in all the computers (HFT) and probably a no-bid type of situation (though I'm not exactly sure on the mechanics).  Then collapse.  At a particular technical point in their algorhythms, the computers all bought and we bounced.

Why do I say this?  EUR/JPY is still (even after September/October 2008) the primary carry trade funder of "risk" in the markets.  It collapsed about 30/45 minutes before the rest of the market and never recovered after the bounce.  That means it is, almost assuredly, the cause and not the symptom.

What caused it to collapse.  Something within Europe, I suspect.

[hawkeye59]

A real measure of the economy is the unemployment rate. This isn't a good measure of the economy.

[Joe Biden 2020]

A real measure of the economy is the unemployment rate. This isn't a good measure of the economy.

Which while the unemployment rate rose to 9.9% in April, we did add 290,000 jobs and March was revised to something like 230,000 jobs added.  That may have helped pare some of the losses we could have had today.

[??????????]

A real measure of the economy is the unemployment rate. This isn't a good measure of the economy.

Which while the unemployment rate rose to 9.9% in April, we did add 290,000 jobs and March was revised to something like 230,000 jobs added.  That may have helped pare some of the losses we could have had today.

Census jobs, duh.