DOW Down Over 1,000 Points, Uncertainty in the Markets

Another volatile day in US Equities today, with the DOW Jones finishing at around 1,033 points down, or 4.15%.



The VIX volatility index also rose to 35+ (up 27%).



I wonder if equities will be even lower before the opening bell tomorrow.

www.latimes.com...

The Dow Jones industrial average slumped more than 1,000 points. The tumult started last Friday as investors worried about signs of rising inflation.

The market fell steadily as the day wore on and is on track for its fifth loss in the last six days. Many of the companies that led the market's gains over the last year have struggled badly in the last week. Those include technology companies, banks, retailers, travel companies and homebuilders.

A minor correction would be a 5-10% decline. 10% - 19% decline would indicate a more significant correction, and 20% or more would indicate that we are entering into a bear market.

Treasuries are still rising, but the spread between the 10 Year and 30 Year is staying at around 0.30% (hopefully that yield gap does not lessen much more, although they were separated by only 23 basis points like a week ago)

Is this just another shake up to see who the weak hands are before another brief period of pumping it up, or the advent of something else?



Time will tell

a reply to: FamCore

Just another 6000 points to lose before returning to pre-Trump levels.

The man gave the market an unprecedented gain.

a reply to: FamCore
I stopped bleeding last week when I moved my stuff into the Black Rock Money Market Trust. It is like parking it in cash. I just don't know where the bottom is, although I personally am calling it at 18,000 - 19,500 range. If it reaches that number, it would be the end of next week. If it pushes further down, I cant imagine going down to 15,000. That would just be shocking

Looks like a good time coming up to buy stocks!

Who's fault is it today? Trump? Obama? The Russians?

originally posted by: chadderson
a reply to: FamCore

Just another 6000 points to lose before returning to pre-Trump levels.

The man gave the market an unprecedented gain.

You may want to sharpen that pencil...
Trump came in at 19,600.... that's 4400, not 6000.

Any comment on this 1,000 point DROP?
That is what the thread is about.


MTUBY

a reply to: ParkerCramer

November 11, 2016 = 18,847

...And it was already on the rise since the 6th. Rose 1000 points between November 4th and November 11th.

originally posted by: AugustusMasonicus
Who's fault is it today? Trump? Obama? The Russians?

Elon Musk. Rocket goes up, stock market goes down. There's a clear correlation.

this might be the beginning, the ups and downs, the peaks and valleys of a downward spiral. will trump own it or pass the blame to obama? i'm just saying since trump likes to claim all good economic news as his creation.

originally posted by: AugustusMasonicus


Who's fault is it today? Trump? Obama? The Russians?

Depends who you ask

originally posted by: AugustusMasonicus


Who's fault is it today? Trump? Obama? The Russians?

It's Lebron's fault. Huge trades at the NBA trade deadline. Everyone's fantasy team is thrown off, hence the market drop.

originally posted by: conspiracy nut
i'm just saying since trump likes to claim all good economic news as his creation.

Yeah. No president has ever blamed the bad things on his predecessor before.

a reply to: conspiracy nut

Are we in a recession or something?

This is only the beginning of the disaster that is trump. Anyone who can think on their own knows what’s coming. Meanwhile I’m sure the trump sycophants are off eagerly awaiting their rebuttal programming. Smh...

originally posted by: chadderson
a reply to: ParkerCramer

November 11, 2016 = 18,847

...And it was already on the rise since the 6th. Rose 1000 points between November 4th and November 11th.

Trump was in office in November??

Or are you claiming that Trump is responsible for EVERYTHING, good and bad since last November 2016?

😁

MTUBY

a reply to: Blue Shift

i think trump and his pro business/corporation tax plan helped to temporarily spike the economy, now it is uncertain and will dive temporarily. i will wait to judge trumps tax plan til the dust settles.

a reply to: FamCore

"Signs of inflation"

AKA: The Federal Reserve is dicking with the American economy again.

But to be fair, the gains that the market has seen since Trump took hold have, in my relatively uneducated opinion on the stock market, been too much too fast, and the market has been primed for a "correction" for months now.

I don't think that this is anything other than that, plus the dicking with inflation that is a result of the federal reserve (or, at least, a lot of it is). All of the hype, IMO, is just that, as the signs of the actual economy are still looking good. The thing that I noticed is that it seemed that the market was being artificially inflated back when Obama was in office, where it was obviously outpacing the true betterment of the economy, yet it was being used as a metric to claim that the economy was doing much better.

Like I said, I don't think that this is anything other than a correction that will bring the market back to where it actually should be, as it has had a couple of years at least of what I feel was inaccurate gains in relation to the actual economy.

I wonder how much the high speed trading and other black box tech stuff is having on the market volatility. The market appears to be reacting badly to rising bond yields. Usually equities move counter to bonds. When market is up, bonds are down. However, now that yields are rising, it is causing equities to collapse because investors are thinking higher yields may choke off lending.

Mortgage rates are up about .5% since December. Given the price of homes nowadays in many urban areas, that is some real money. We just hit 4 year highs rate wise.

a reply to: AugustusMasonicus

Let's go with the Fed.

1000 points today is like 200 points 10 years ago. Those in the media who are whining about points, are fairly ignorant.

Large portfolio Investors drive down the stock market and then repurchase stocks after it reaches predetermined floor levels.

Another 10% drop would be fantastic for those of us who have additional money that we would like to invest.