Will this be Black Friday? - 10/10/08

Somebody stepped in today to cause a rise in the dow and it looks fishy to me, I can't help it I got this funny feeling that tuesday we will see a great fall................I hope I'm wrong.

[edit on 10-10-2008 by rikk7111]

PC was wrong here. The market did drop wildly on the open, but not enough to trigger the breakers.

What happened to ATS. I couldn't get on for a long time. Anyone else have this problem? I noticed all the latest post in breaking news forum are old.

edit: I don't know what happened everything looks normal with posts, but I couldn't get on.


[edit on 10-10-2008 by 2 cents]

ATS should have a contest. For points. Say 5000 points to the winner.

1. what will be the market bottom

2. when will the market bottom occur

I think the wild swings point to something more odd than if it stayed steady at around 8500.

A gyration of 1018 points seems pretty wild. It's the largest variation in trading on the Dow in history.

There's talk that the automatic trading done with computers could have influenced the fluctuations, as their bidding models haven't been tested in a market like this.



[edit on 10-10-2008 by mattguy404]

reply to post by son of PC

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That would be cool but it would take a while to know when the bottom is really in

reply to post by son of PC

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I see you mentioned points. Still trying to figure some things out here. I have not quite understood what the points mean. LOL I see they have been adding up for me but I am clueless as to what they are for. ~sipping on coffee royale~

Paulson just announced that the Government will be buying stock of financial companies. Wonder if they started doing that around 3pm today? Hmmmmm...

Points are prestige at the site. They make you look better. No cash value.

reply to post by Mainer

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Hmmm, that's interesting.

The UK hasn't started to buy equity just yet but are we about to see the governments enter the market over the weekend? Seeing that markets have crashed and matched the falls of 1929, I'd expect troubled banks to find government buyers at the door now.

Equity markets are open on Monday, but when the crash doesn't occur you will be at the bottom. If you are not smart enough to buy at such a generous price, then you deserve to not have an ownership interest in the factors of production going into the future. Its a yard sale down there.

I have to admit they all got together and tried to collapse the market, but the good guys have way to much money for that to happen. They were more than happy to buy up your influence at such a discount.

It should be obvious that the enemies of this country DON'T POSSESS all that they need to bring down the system and now they don't even own much stock.

Thank you. Thank you for all of this money and UNLIMITED POWER!!

[edit on 10-10-2008 by bruxfain]

something's building, dont know what but you can see that something is going to happen. Is martial law coming soon? is ther going to be a bank holiday? false flag event? who knows, but a storm is brewing. The next couple of weeks is going to be very interesting.

I heard that and my jaw hit the desk!

Russia did that last month - how'd that work out for them?

reply to post by son of PC

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Oh ok. Thanks for answering!

Learn something new every day!

That huge spike in the market today I believe was unprecedented in a (points/time) ratio shift.

They probably did not want to allow the market to be able to stew over a sub 8000 freefall over the weekend. So they used their newly minted 700 Billion Dollar plan and jumped in. Of course they announced it after the fact, on another Friday Evening FED/Treasury Announcement™. Remember all the last Friday Evening FED/Treasury Announcement's and how well those worked out for everyone.

The SKY Is Falling



Wow...

Near 8000... just a min ago it was near 11000...


Everything is tanking...

All parts...

What are we to do...

Yeah, the Americans are printing off money and buying ownership in their own corporations and banks that noone else in the world wants.

Those suckers accepted them. We just took ownership of our country with fake money that isn't backed by anything. Can't you see the absolute brilliance of this.

We should print off some more money and make it so that only Americans own American companies and lock everyone else out forever.

The Japanese situation was more of a long, drawn out slide. Took place over a decade or so.

In late 1989, it peaked at just a hair under 39,000. By Sept 1990 it was down to 20,000, then 15,000 in 1992.. There's a lot of debate as to when the bottom for that particular crisis was hit - some people put it at the 13,000s hit in 1998, others take the "rock bottom" of 7,900 in 2003.

I hear guys talk about those days, when it was up over 30, and they get this glassy-eyed, distant look... there really was an absurd amount of money around then.

This market reaction was predictable as soon as President Bush said; "This sucker could go down." A similar meltdown occurred in 2000-2001 when Greenspan said equity markets were in a bubble that was going to burst. These actions by people at the top are signals to short a market.

The problem with shorting the market is that the seller has to cover eventually, or the losses he takes as gains disappear as the stock recovers. Right now the shorts have gotten rich so they are ready to buy back the stock they shorted at a discounted price. GM and Ford are at record lows. If I had the money, I would be a buyer, as there should be a significant bounce when the bears race to cover their massive short bets. They will then buy quality equities to hold for a long term. Buy into blue chip at these lower prices, and profit.

The Congress has just sent 900 billion into the markets, and there is an orchestrated global governmental response in progress as well. Stocks go up and down, and the trick is merely to buy low and sell high.

If concerned about loss exposure, or you don't have the money to play larger stocks, buy covered call options instead of the quality higher priced stocks. To get a quick definition of puts and calls, proceed to infoplease
These covered calls are extremely speculative, so anyone using them needs to use a broker or suscribe to a newsletter and gain an education first.

Sellers in this environment are taking a ridiculous hit. A lot of the selling has been generated by margin calls, so investors that were trading on borrowed money via "Margin Accounts" have been wiped out.
See Investopedia
Margin Calls have figured in as a major cause of the recent market meltdown. The selling was done by brokers to liquidate securities speculators made bad bets on using brokerage firm's money. That selling pressure is over. A similar pressure will ocur where uncovered puts and uncovered shorts are forced to liquidate and buy back securities during the coming bounce. The bounce will be far greater than it otherwise would have been. Buy baby buy!

Many prudent investors on the sidelines are looking at charts that will signal this as a buying opportunity. Buy good values to hold for the long term. Please remember that the Dollar remains down against the Euro (from five years ago) by approximately 30%. It has come back from 1.6 dollars to buy a Euro to 1.36 dollars to buy a Euro in the past 12 months. The US Dollar looks good in a "head and shoulder" chart.

The US Stock Market looks like a great buy here, and the dollar looks stable the in short term. Many of us have concerns about inflation, but this has become a global crisis. Any short term US Dollar hyperinflation shouldn't occur due to the global nature of the problem.

If the US government were smart, they would legalize marijuana and tax it, which could result in 50 to 100 billion a year in Federal Tax Revenue enhancement. That move would also have the benefit of calming down the taxpayers over the implications of the 900 billion-Dollar bailout
vis-a-vis financing the thing. It would also shore up the Dollar, and make it stronger vs. foreign currencies. Legalizing Marijuana would be a responsible way to rid us of huge sums of currency being exported to terrorists as well. That one move could easily cause a surge in equity markets. Let's all live in the solution, and realize that in the end we will weather these storms.