Dow tumbles more than 650 points in midday trade

People seem to forget that this kind of thing happens in October once in a while.

originally posted by: Blue Shift
People seem to forget that this kind of thing happens in October once in a while.

Once in a while as in, say, 10 years or so? Granted, I'm not a stock expert here, but I'm seeing the percentage losses across the board looking mighty similar to '08. If this keeps going tomorrow, people might want to consider how palatable crow is.

Keep watching the Futures, they're not looking any better than yesterday so far today.

Sears may close, 80,000 layoffs( God forbid) construction is down because of the steel tariffs, auto sales are sagging, and interest rates are going up and a lot of other indicators appear to testify to trouble ahead.

a reply to: infolurker

If you go with bonds, stick to the shortest term bonds you can find, and favor corporate bonds in good companies over any sovereign government, and municipal government bonds, because the latter are at big big risk!!!

in the Yahoo Financials... there is an article explaining that 'Machines' were the reason for the plunge...

the 'computers using programs which play exaggerated down moves in the market to an extreme limit and also counter-play market trends & momentum trends so as to finesse market action on the next move to make

elsewhere Trump blames the 'out-of-control-Fed' for slamming the economy with too many-much rate hikes

… I see a fake rally in Gold...it jumped some $35.00 & the PM sellers/dealers upped their prices by a mere $30 so far, I think the bullion coin sellers did not up their buy-back programs by that same $30 of price increase for the stacker who saw an opportunity to sell back some of that over-priced + high Premium Gold back to the licensed dealers.

… I too saw this as a buying opportunity...I previously sold overpriced INTEL to buy the suddenly affordable DWDP as it is down over $11 in a short period-of-time to my strike price of $59.22 yesterday... and perhaps Friday I will buy a few more shares IF it drops another 2-3% to $55-or-57

in the long term, the FED is secretly unloading some of their FAANG equities to help repair their Red Ink Balance-sheet...so the plunge hiccups should become more & more familiar to-the-public as the months go by



thegold & silver shorts will need to be bandaged up & that might start tomorrow/Friday the 12 of Oct


in a broad sense the Cryptos went nowheres and that should continue because they are getting too easy to take from their digital realm leaving some crypto wallets empty of over $3 billion of value disappeared

a reply to: Fowlerstoad


I watch Gold and Silver, if the demand cancels out the shorts, they might go long and stop manipulating the price. The price has been going up with the drop on the exchanges, so at least some traders think a place in the life boat might be the prudent option at this state of the game.

The good news is that there doesn’t seem to be anything on the horizon like 2008. Of course, most didn’t know much about the derivates that caused the disaster through the housing market bubble and bust.

All of this because of the housing derivates. Those are basically bad loans made into a security the money firms and banks had loaded up on. These securities, which firms greedily packaged, were in the trillions.

I recall the beginning of that, the big stock firms falling. It was the Bear Stearns rescue that started the ball tumbling down, then Fannie Mae was bailed out and then Lehman Brothers collapsed, probably being the real trigger of the 2007-8 recession.

Then the big insurance giant AIG was bailed out by the FED because they couldn’t support all those failing derivatives they had insured.

Eventfully what is the worst element in a recession happened: frozen credit. No one was lending. The US economy, the world’s largest, is based on credit without it the economy comes to a halt.

As long as the credit market remains fluid we have nothing to worry about.

The question is though, is there something lurking we don't know about?

a reply to: Blue Shift

Seems like it also happens in years ending in "8".

1988, 1998, 2008, 2018?

a reply to: Fowlerstoad

You can get up to 2.75% for 9 month FDIC insured CD's and 3% for 2 year FDIC insured CD's.

The money managers have a huge amount of leeway as to how they want to manipulate the stock market.
Despite 45% less new money coming in they were able to choreograph a summer rally with high speed trading.

The double tops in the stock indexes will probably hold with improving alternative investments, but it might be a rerun of 1983 with stocks only losing 15% through 2019.

originally posted by: ladyinwaiting
a reply to: Blue Shift
Seems like it also happens in years ending in "8".
1988, 1998, 2008, 2018?

The big crash of 1929 was a year off, but it was in October!

Of course, there could be a problem in the so-called FED asset reduction.

The FED has to one day get rid of all those rotten securities they brought to save the economy and that many believe may be a bomb waiting to go off in the economy.

Indeed, if the FED starts unloading all these assets wrongly anything can happen to the system.

What this amounts to is the FED discontinuing stimulating the economy. If the US system is now an addict to FED stimulus this can cause trouble.

My solution, something this political system has abandoned, is to allow for the healthy creation(or restoration) of the lower and middle class to buying power it once had and not this credit based economy where people NEVER get out of financial dependence on the elite financial institutions credit markets that have enslaved the vast majority of the American populace.

a reply to: St Udio
a reply to: anonentity
a reply to: Blue Shift
a reply to: Willtell

Futures are now up like 200 points.. hmmm CNBC

originally posted by: Fowlerstoad
a reply to: infolurker

If you go with bonds, stick to the shortest term bonds you can find, and favor corporate bonds in good companies over any sovereign government, and municipal government bonds, because the latter are at big big risk!!!

Not much choice in the matter. My employer has about 20 Fidelity choices of which only one is Treasury bonds. I pulled the trigger this afternoon. I figure I had a good ride from 16K just a short time ago to th 25K point we are at today. I think I will sit the rest of 2019 out, at least until after the mid-terms and see what happens later in November. Better to risk not making more if it goes up again soon than to lose 40-60% again.

a reply to: FamCore

Although I’m not an expert on the nuances of the stock market, this may be a big dogs attempt to profit from the lagging market.

One thing is for sure, the stock market is just a legal gambling casino. They might as well move it to Las Vegas.

a reply to: FamCore


We are looking at a totally manipulated economy, where Reserve Banks have trading desks, and can make the markets do what they want. This also has to have totally distorted employment figures, but the fly in the ointment are the interest rates, if everything was great they would be humming around five per cent, anything near this will cause a Depression which no amount of Spin could actually hide. So at the moment with inflation taken into account, any money in the Bank is a depreciating asset. More so in Europe where they admit to negative interest rates.

a reply to: anonentity

Thank you for that advice, my brother

I think everyone should start with a position in precious metals first, and always, and from there build something more intricate on top of it.

Your advice rocks, and I am taking it!

Lifeboats ahoy!

Agree...

Just remember the most precious of the precious metals is Tin.... As in Tin cans full of freaking food! Second is lead encased in brass.



Once those are at an acceptable level, then worry about shiny metals.

a reply to: infolurker

neodym has become common in eletronic equipment

originally posted by: FamCore
Full Title:Dow tumbles more than 650 points in midday trade as stock-market rout gathers steam Thursday

Yesterday I made a thread about the DOW's 800+ point drop: DOW Sinks Over 800 Points Today; Futures Down Over 1,000 for Tomorrow

Well, it appears that yesterday's woes in the markets have continued, as global stocks went down (Tokyo's NIKKEI dropped over 900 points, losing about 4% of its value, Italy's market dropped 1.84%, etc.). NASDAQ is "flirting" with correction territory between yesterday and today.

Wall Street's "Fear Index", the VIX shot up over 28 (hovering above 26 now): Wall Street's 'fear index' briefly jumps above 28, marking its highest level in 8 months as Dow tumbles nearly 700 points

Interestingly, US treasuries caught a bid and have gone down a bit (otherwise I believe the selloff would be much worse).

There's still an hour left of trading in the day, and all of tomorrow

[Cue heavy breathing sound]:

Will the market shake it off or are we going to see panic/contagion continue and accelerate? Would love to hear your thoughts ATS

The stock market is mostly government controlled.
If it dips down enough, the government will restart QE to re-inflate it again.

We have a command and control economy where the government controls every aspect of it with the major beneficiaries at the top.

a reply to: jacobe001

yes exactly, we have a centrally planned economy, they steal everyone's wealth and decide what business's will fail or succeed through taxes, regulation and subsidy

the people who think we are pick yourself up by your bootstrap capitalist are highly misinformed