# Why is the ASX 200 down by 2.15% today?



## steve401111 (21 February 2013)

Why ASX 200 Down by 2.15% Today ??? 

Asx 200 Live -> http://www.stockmaster.in/asx-200-index-charts.html


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## white_goodman (21 February 2013)

steve401111 said:


> Why ASX 200 Down by 2.15% Today ???
> 
> Asx 200 Live -> http://www.stockmaster.in/asx-200-index-charts.html




its the start of a new bear market


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## McLovin (21 February 2013)

white_goodman said:


> its the start of a new bear market




GFC round II (or is it III, I forget).


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## drsmith (21 February 2013)

The froth on the top had built up a little too much.


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## notting (21 February 2013)

Ben's looking to close his wallet?
China has been attacking US infrastructure with data bombs and the US is about to respond with real bombs?
China's curbing house prices?
Europe's recession is worse than expected?
Oil prices have gone over the line and are now stalling growth?
The sequester is not going to go so smoothly?
It's just a bit of profit taking?

A healthy pullback we've all been waiting for!


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## clowboy (21 February 2013)

notting said:


> Ben's looking to close his wallet?
> China has been attacking US infrastructure with data bombs and the US is about to respond with real bombs?
> China's curbing house prices?
> Europe's recession is worse than expected?
> ...




Pullback?  personally I am confused, after such a steady climb in the market I was expecting a 2.15% daily gain......


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## Gringotts Bank (21 February 2013)

I bet Joe could tell us how many new members have joined ASF this past 2 weeks.  It would be way above average is my guess.  And they all bought in at the top and will sell just as it bounces, and they will swear never to invest/trade again.


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## notting (21 February 2013)

clowboy said:


> Pullback?  personally I am confused, after such a steady climb in the market I was expecting a 2.15% daily gain......




Well if they were not enough reasons to not be confused, here is another:




This weekly chart shows that there may still be people around this resistance line that just want to get out because they have not had a chance for years and they do not believe in this rally.
The volume on the latest rally is a bit week which is not good.
However notice that it's after a flatter and shallower U like dip as opposed to a sharper V like dip.
This indicates consolidation and makes for a stronger rally than the last attempt at this line of resistance at 5000 to 5200.
Chatists on this forum may give a much better insight than me.


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## tinhat (21 February 2013)

Some days the market goes up and some days it goes down. Sometimes by a little bit, sometimes by a lot. In general it tends to go down quicker than it goes up. It's a bit like the game snakes and ladders.


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## baby_swallow (21 February 2013)

drsmith said:


> The froth on the top had built up a little too much.




500 pts worth of froth build up since Dec holidays...
Now, 100 pts down.....400 pts more to go to get rid of the froth


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## tech/a (21 February 2013)

baby_swallow said:


> 500 pts worth of froth build up since Dec holidays...
> Now, 100 pts down.....400 pts more to go to get rid of the froth




That'll do it.


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## odds-on (21 February 2013)

white_goodman said:


> its the start of a new bear market




About time, at least with a bear market you know a bull market will be next


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## burglar (21 February 2013)

What a cheerful lot!

When it goes up, it rises towards your sell price!
When it goes down, it falls towards your buy price!!


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## So_Cynical (21 February 2013)

Top of the range people! top of the range.

A sideways bear market and we are at (were at) the top of the range...lucky im sitting on more cash than i have held since Jan 2009.


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## steve401111 (21 February 2013)

ASX Ltd. (ASX), operator of Australia’s main stock exchange, reported first-half net income fell as reduced stocks trading hurt revenue.


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## Iggy_Pop (21 February 2013)

Needed a breather. Will this pause allow a few sitting in cash to come in and push the market higher again? Time will tell.With interest rates as low as they are and what looked like the start of a bull market, it wlil be interesting.


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## white_goodman (22 February 2013)

So_Cynical said:


> Top of the range people! top of the range.
> 
> A sideways bear market and we are at (were at) the top of the range...lucky im sitting on more cash than i have held since Jan 2009.




guru


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## noirua (22 February 2013)

Mr Bernanke has announced a reduced stimulos in the USA going forward. London and Europe are heavily hit in all sectors and no let up a few hours from the close. FTSE 100, very few stocks have resisted the trend -- blood everywhere.


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## Iggy_Pop (22 February 2013)

Interesting view from Marcus Padley - 


Stockbroker Marcus Padley, author of the Marcus Today newsletter, told PM the commodities sector had possibly been hit by rumours of a US hedge fund ditching assets because it was in trouble.

"One of the stories going around is that there's a commodities hedge fund in the US that has gone belly-up or something like that and is having to liquidate positions in all sorts of commodity-orientated investments, which include, apparently, Australian equities," he said.

"It would only take one international fund to make some small asset allocation change that would include $1 billion being sold in the Australian market, something like that, which would create this sort of day," he said.

Link
http://www.abc.net.au/news/2013-02-21/market-falls-sharply-back-below-5000/4532568?section=business


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## Country Lad (22 February 2013)

noirua said:


> Mr Bernanke has announced a reduced stimulos in the USA going forward. London and Europe are heavily hit in all sectors and no let up a few hours from the close.




Aha, close to the correct answer at last, showing it may just be a bit more serious than the previous quips.  It was the release of minutes from the last Federal Open Market Committee meeting which spurred the sell-off.  The minutes showed the likelihood of scaling back quantitative easing which was followed by talks of possibly the same occurring in Europe.

Then of course there is the approaching 1 March issue of "Sequestration" which is a series of about $85 billion of automatic spending cuts.  Not as bad as the recent fiscal cliff but a concern to the market anyway.

So, it could be a little more than just needing a breather.  It appears to be a case of the Americans finally realising that their system is actually broken.

Cheers
Country Lad


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## Smurf1976 (22 February 2013)

Quite a few stocks have fallen pretty hard today. 80% of the stocks that I'm watching were down today and in most cases the drop was significant. 50% of the stocks I'm watching are down 3% or more today and over a quarter are down 4% or more. The market might have gone up, but an awful lot of individual stocks sure didn't. 

Note that I don't actually hold all of these stocks, they're just ones that I'm keeping a watch on.

Those falls, the Fed comments, charts and a general look at economic fundamentals - all seems a bit doom and gloom to me.


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## Julia (22 February 2013)

Smurf1976 said:


> Those falls, the Fed comments, charts and a general look at economic fundamentals - all seems a bit doom and gloom to me.



Or perhaps finally a recognition of the fundamental problems that still apply.


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## Muschu (22 February 2013)

I find it interesting that, even yesterday, some companies of good "size"' actually progressed in SP.

It comes back, again I suspect, to our own individual risk profiles. I have no training in economics or finances but do any of us really understand the global economy and its impact on our market?

Personally, with some professional guidance, this financial year has been excellent for investing.

Which is not to say that watchfulness goes out the window....

Anyway it's almost the weekend and I hope you all enjoy it.


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## Smurf1976 (23 February 2013)

Julia said:


> Or perhaps finally a recognition of the fundamental problems that still apply.



Um, yes, I meant "doom and gloom" as in "there really are a lot of bad things happening".

Should have been a bit clearer there. To me, it all points toward the market being more likely to fall than to rise for the time being. Looking at the charts, it's a very logical place for a substantial fall to begin.


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## theinvestorguru (23 February 2013)

Hi All, hope you are enjoying or enjoyed good weekend,

I m newbie and only playing the asx game and felt the pain, which rushed me to sell really good stock and buy bad ones(it is game so I learnt really well to control my emotions)
I wonder is there index or certain website or journal to read that help prepare me for the coming fall in the market?

Thanks guys


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