Wall Street Slammed After China Stock Woes

Originally posted by Gools
I didn't find anything on MSNBC's site.

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Come to think of it, the sell-off started in China who hold a very large percentage of US mortgage assets.

If this is the case and not just some "computer glitch" this isn't over.

Yea, and it's the kind of thing that you hear once and it doesn't get repeated.
On one of the shows between 5 aand , they made mention of the downward trend on mortgages, the high defaults, the folks in trouble, etc.

And, durable goods was down almost 8% last month

[edit on 27-2-2007 by DontTreadOnMe]

Originally posted by infinite
the Asia markets open up in a couple of hours soon, we should carefully watch what happens because another major sell-off will take a huge effect on the US and Europeans markets.

Here you go!

Just like this afternoon, tomorrow is a trader's dream. Short in the morning and long in afternoon.

The China market opens up in a hour and a half,

New Zealand and Australia markets are down by 3%, its expected to drop even more when China opens her doors. Japan is expected for a heavy loss aswell.

[edit]

We've got some bad news coming about Japan's economy and currency to be released in about 30mins.

I'm currently on Bloomberg, isn't looking good

[edit on 27-2-2007 by infinite]

Not to want to sound too simplistic here but this recovery is running out of steam. The indicators have become more abundant in the last few months.

Everyone always seems so shocked when a downturn happens but if you look at it historically, since the 1920's , there has been a Bear market about every 5 1/2 years, which lasts on average about 1 1/2 years in which the market declines on average about 38%. Since people misread when the bear market really starts and stay in longer during the inital decline (it's only a correction after all LOL) far too long. People end up buying high and selling low in panic (yes, I know it sounds wrong) it takes the average investor about 5.2 just to get even.

The big secret is figuring out when the Bear really starts and getting out of the market just before. Better to not gain anything for a year than to lose 38%.

The funniest thing, if you can call it that, is that people who lost big during the 2000-2002 market have just got back to where they were and still can't seem to see the signs of a slowing market around them. Does anyone here really think Google is worth $448 a share? History repeats itself and still people think "this time is different".

Originally posted by infinite
We've got some bad news coming about Japan's economy and currency to be released in about 30mins.

I'm currently on Bloomberg, isn't looking good

Could it be this:
Japan's Industrial Production Fell 1.5% in January From Record

Japan's industrial production fell from a record in January, the first drop in four months, signaling growth may slow in the world's second-largest economy.

Breaking news..

Japans two markets, Kospi and Nikkei 255 have dropped by 3 and 4%

Kospi (4%)
Nikkei 255 (3%)

Nikkei 255 is about to hit a 4% drop

Originally posted by titian
Anyone buy at or near the bottom? I've been trading again since I was laid off and I about #e my pants when that happened at 2:50.

I'm looking at buying. However, my shares are mostly in energy stocks and drug companies, and they weren' badly hit by this.

Apparently part of the rapid drop was due to a computer problem:
biz.yahoo.com...

I notice the tech stocks (including solar energy stocks) and trust fund stocks took a beating. So did Citigroup.

Radio Shack was way up. Go figger.

Anyway, I'll be looking to buy. Generally I follow the "Dogs of the Dow" strategy (it's easy. No-brainer) and also do the "widows and orphans" stocks (utility companies.) Ain't glamorous, but I have kept my initial invesment intact and earned a few bucks.
www.dogsofthedow.com...

Found this on Yahoo news.

(YahooNews)-Stocks have worst day since 9/11 attacks

NEW YORK - Stocks had their worst day of trading since the Sept. 11, 2001, terrorist attacks Tuesday, hurtling the Dow Jones industrials down more than 400 points on a worldwide tide of concern that the U.S. and Chinese economies are stumbling and that share prices have become overinflated.

news.yahoo.com

The Dow fell 546.02, or 4.3 percent, to 12,086.06 before recovering some ground in the last hour of trading to close down 416.02, or 3.29 percent, at 12,216.24, leaving it in negative territory for the year. Because the worst of the plunge took place after 2:30 p.m., the New York Stock Exchange's trading limits, designed to halt such precipitous moves, were not activated.

news.yahoo.com

The decline was the Dow's worst since Sept. 17, 2001, the first trading day after the terror attacks, when the blue chips closed down 684.81, or 7.13 percent.
The drop hit every sector across the market, and a total of $632 billion was lost in total in U.S. stocks on Tuesday, according to Standard & Poor's Corp. Riskier issues such as small-cap and technology stocks suffered some of the biggest declines, but big industrial companies, those that are often hurt the most in an economic downturn, also were pummeled, with raw materials producers among the hardest hit.

news.yahoo.com

Mod Edit: Link format edited. Please review this post.



[edit on 27-2-2007 by DontTreadOnMe]

Originally posted by titian
Anyone buy at or near the bottom? I've been trading again since I was laid off and I about #e my pants when that happened at 2:50.

Not to sound preachy, but timing the market invariably gets you in trouble. Don't believe me now? you will, you will. Hopefully you are not day trading with your retirement money. Even well managed funds get hit hard during most recessions. Almost all funds compare themselves to the benchmarks like the Dow or S&P. Then they can crow about how much better they did than the Dow did when in reality the Dow lost 20% and they "only" lost 12.5%. Remember Warren Buffets #1 rule: Don't Lose Money!

Add on top of it the emotional attachment you have when personally trading in semi-recessionary times and it becomes akin to gambling when the odds are not in your favor. Trying to profit in down markets is too risky for the bulk of your money. Try instead to just preserve what you have instead by diversifying into solid stocks, funds and investments with a solid history of weathering downtimes well. Weather the storms and then you will be in good shape for the Sun that will follow.

@ pavil

DT an IRA? I don't think you can daytrade an IRA anyway with liquidity and pattern trader rules nowadays. Timing the market bought 40% of my house and paid for the first major renovation.

Funds are where you put your money when you're too busy to do the proper research. Isn't it amazing how a fund can lose money all year for you and then at the end of the year you receive a dividend from that fund and you're back even for the year? It's like an interest free loan if you ask me.

Emotional attachment -- you don't fall in love with stocks, you fall in love with the cash in your account.

Mod Note: Trim Those Quotes - Please Review this link

[edit on 27-2-2007 by DontTreadOnMe]

The markets opened in Asia after the dismal day on Wall Street. Interesting how the US markets were blaming China and the Asian markets are blaming the rest of the world!
It'll be interesting to see what happens as the rest of the world enters the next trading day.

Asian stock markets have opened sharply lower after the biggest drop in Chinese stocks in a decade triggered a steep slide in global markets.

Originally posted by titian

DT an IRA?

Good for you with your trades, I wish you continued prosperity, just bulletproof yourself when times start going bad. Look into Roth IRA's if you haven't already.

I was refering to people who recently cashed in their 401-k's upon leaving a company prematurely, then trading the proceeds themselves. Unbelivably, I have seen that happen numerous times. Nevermind the penalties involved with such a transaction.

I run across too many people who just plainly should not be managing their investment money themselves. It's not that they can't do it themselves, it that they think they can do it themselves without putting forth the proper amount of effort and learning. They will spend more time to pick out their vacation with more research than they do picking their investments, it just boggles my mind sometimes.

You are correct, if you are willing to put in the time, it is fairly easy to select stocks with good potential. Most will not do their research and homework and those are the ones who suffer.

Originally posted by pavil
I run across too many people who just plainly should not be managing their investment money themselves. It's not that they can't do it themselves, it that they think they can do it themselves without putting forth the proper amount of effort and learning. They will spend more time to pick out their vacation with more research than they do picking their investments, it just boggles my mind sometimes.

All excellent points. I think that there is a generation of people who didn't have investments around them until the end of their career, and they truly don't know what to do. My in-laws are like that. But, they are saving more money via the 401k accounts than they would otherwise.

Lately I have been reading Jim Cramer's second book. I try to catch him at night and I track all his stocks. UA and CROX were two great picks and are very reliable for range trading. I think that UA needs to prove itself further over the next few quarters and I might just believe Cramer when he calls it the next Nike.

Finally, thanks for not taking my post the wrong way. I think it might have come out a little arrogant and that truly was not my intention. If there is one thing I believe in, it's that anyone can make money in any kind of stock market. How you do it is the question. I am all for people building personal wealth because to believe in the farce of social security is a big mistake.

Good luck to you also Pavil. Tomorrow morning will be very interesting. I might just watch those screens all day tomorrow.

Tale of the Drop

ahhh...its all good.

Europe is okay, US should be fine. GDP data might cause a drop thou

Europe is starting to fall again,

we've dropped to 1-2% now....

US data will probably hit the market hard, so will Asian stocks. but it will not be anywhere near as bad as what we saw yesterday

Anyone on here getting rich, becuase there must be someone out there, taking advantage of this.

insider trading, at its best.

Canadian resources are being hit, Oil seems to be the worst. One thing that's seems like a paradox though is the lower prices for resources in general isn't causing more downward trends among stocks, save for Oil that is. I've been very active at trading this morning, and it looks like my previous patient inactivity is about to pay off.

DAX has closed 100 points down and the FTSE is currently at 114 points down.

Europe is still playing catch up, expect afew more losses to come.

Many have said that they are still waiting to see what China is doing.

Well, things seem to have settled down somewhat in gthe US.
The Fed Chairman tried to reassure Americans:

Testifying before the House Budget Committee, Bernanke said Tuesday's sharp stock market drop had not changed the Fed's view that the U.S. economy was sound. In addition, he said there did not seem to be any single trigger for the drop.

"Bernanke did a good job of not being panicked," said Christopher Zook, chairman and chief investment officer at CAZ Investments in Houston, Texas.

But he added that investors may again have turned complacent as market corrections were never a one-day event and there could be yet more selling to come.
~~~~~~~
Stocks' steep drop on Tuesday wiped out the market's gains for 2007, and set the S&P 500 on course for its worst monthly decline in 9 months.

But with Wednesday's rebound, the Nasdaq recovered to show a gain of 0.3 percent for the year, while both the S&P 500 and the Dow Jones industrial average remained in the red.

Stocks bounce back as Bernanke reassures

more:
CNN--Bernanke: Markets are 'working well'
Guradian--White House dismisses world market turmoil
]MarketWatch--Fed chiefs had little to do with market's moves


[edit on 28-2-2007 by DontTreadOnMe]