Big drop today
- Thread starter el_ninj0
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Re: Big drop today.
maybe its the expected rate rise due sometime in 2006, spooking the market, along wth the sharp dip in oil and gold prices. Plus the expected continuation of rate rises in the U.S. to keep inflation under control
maybe its the expected rate rise due sometime in 2006, spooking the market, along wth the sharp dip in oil and gold prices. Plus the expected continuation of rate rises in the U.S. to keep inflation under control
As posted by el_ninj0
What is going on today? I cant see any reason for this drop, the us market didn't fall this much in its percentage. Its a bit extreme for my liking. Not good, not good at all.
Anybody game to make a prediction on what is going to happen tomorrow
What is going on today? I cant see any reason for this drop, the us market didn't fall this much in its percentage. Its a bit extreme for my liking. Not good, not good at all.
Anybody game to make a prediction on what is going to happen tomorrow
wayneL
VIVA LA LIBERTAD, CARAJO!
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Could be big money exiting the world markets. The US indexes just fell off a cliff last night for no apparent reason at 1:30 EST.
Cheers
Cheers
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Could be some buying opportunities out there if it continues. I haven't bought anything for months, currently my holdings have been reduced down to companies that i am happy to hold through anything (as long as their respective businesses hold together) and one more speculative which I've jumped onto today.
If there is a shakeout its going to come down to the individual businesses and industries and how good they are.... pretenders will be dealt with harshly.
Personally industries i like are;
Real resources (not spec)
Energy
and....
Internet services
TJ
If there is a shakeout its going to come down to the individual businesses and industries and how good they are.... pretenders will be dealt with harshly.
Personally industries i like are;
Real resources (not spec)
Energy
and....
Internet services
TJ
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Here is one explanation as of 12.20pm but things did get a lot worse.
It's a case of when the US has a sneese we catch a cold.
FYI
Stocks down as investors book profits
05/10/2005 12:20:45 PM
The Australian stock market continued to fall at noon, with investors moving to book profits following the market's strong run.
At 1200 AEST, the S&P/ASX200 index was 62.2 points weaker to 4581.4 and the all ordinaries was 58.7 points lower to 4532.8.
On the Sydney Futures Exchange, the December share price index contract was down 51 points at 4597.
CMC Markets analyst David Land said today's decline was expected, especially after a weak lead from Wall Street overnight.
"You see some of the major movers downwards and these are some of the names that have been popular over the last few weeks, particularly the gold miners and the energy sector."
"I think from that it is reasonable to say that people are making swift profit taking decisions so they can conserve what they've earned over the past couple of weeks."
Woodside Petroleum was down $1.17 at $34.18 while Santos shed 39 cents to $12.39.
In gold sector, Newcrest Mining was 72 cents weaker at $19.48, Newmont Mining lost nine cents to $6.01, while Lihir gave up 7.5 cents to $1.79.
At 1203 the spot price of gold was $US466 per ounce, down $US1.45 on yesterday's close.
Overnight in the US, concern about rising interest rates saw the Dow Jones industrial average fall 94.37 points to 10,441.11, the Standard & Poor's 500 index slip 12.23 points to 1214.47 and the Nasdaq Composite Index lose 16.07 points to 2139.36.
Mining company BHP Billiton was down 49 cents at $21.71 while Rio Tinto had lost 79 cents to $57.82.
At 1211 AEST, the four big banks were all experiencing losses.
ANZ was down 29 cents at $23.81, Commonwealth Bank giving up 18 cents to $38.52, Westpac was 18 cents weaker at $21.12 and National Australia Bank lost 18 cents to $33.01.
Among the other financials Macquarie Bank had lost $2.04 to $73.23, QBE Insurance Group was 19 cents weaker at $18.29, and AMP shed seven cents to $7.35.
Babcock & Brown Ltd was down $1.91 to $17.77.
It's a case of when the US has a sneese we catch a cold.
FYI
Stocks down as investors book profits
05/10/2005 12:20:45 PM
The Australian stock market continued to fall at noon, with investors moving to book profits following the market's strong run.
At 1200 AEST, the S&P/ASX200 index was 62.2 points weaker to 4581.4 and the all ordinaries was 58.7 points lower to 4532.8.
On the Sydney Futures Exchange, the December share price index contract was down 51 points at 4597.
CMC Markets analyst David Land said today's decline was expected, especially after a weak lead from Wall Street overnight.
"You see some of the major movers downwards and these are some of the names that have been popular over the last few weeks, particularly the gold miners and the energy sector."
"I think from that it is reasonable to say that people are making swift profit taking decisions so they can conserve what they've earned over the past couple of weeks."
Woodside Petroleum was down $1.17 at $34.18 while Santos shed 39 cents to $12.39.
In gold sector, Newcrest Mining was 72 cents weaker at $19.48, Newmont Mining lost nine cents to $6.01, while Lihir gave up 7.5 cents to $1.79.
At 1203 the spot price of gold was $US466 per ounce, down $US1.45 on yesterday's close.
Overnight in the US, concern about rising interest rates saw the Dow Jones industrial average fall 94.37 points to 10,441.11, the Standard & Poor's 500 index slip 12.23 points to 1214.47 and the Nasdaq Composite Index lose 16.07 points to 2139.36.
Mining company BHP Billiton was down 49 cents at $21.71 while Rio Tinto had lost 79 cents to $57.82.
At 1211 AEST, the four big banks were all experiencing losses.
ANZ was down 29 cents at $23.81, Commonwealth Bank giving up 18 cents to $38.52, Westpac was 18 cents weaker at $21.12 and National Australia Bank lost 18 cents to $33.01.
Among the other financials Macquarie Bank had lost $2.04 to $73.23, QBE Insurance Group was 19 cents weaker at $18.29, and AMP shed seven cents to $7.35.
Babcock & Brown Ltd was down $1.91 to $17.77.
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Ouch that was some drop 94.7, that is the biggest one day drop I have seen, ever.
Not that I have studied the all ords much in my time, I am sure others have can vouch for much bigger drops
Not that I have studied the all ords much in my time, I am sure others have can vouch for much bigger drops
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I reckon anyone who was long the market and took their losses today is an absolute winner! I take my hat off to you! Sleep well.
Happytrader
Happytrader
clowboy said:
I just looked at the XAO chart, and there were similar falls in that last decent sized correction in the market. However there was one period which clearly stuck out on the chart; January 1988 2300 to 1250 point drop(1150 points, 38% drop). Not that say that its anything like that, just thought it was interesting...
I think i'll agree with clowboy, more red tommorow.
GreatPig
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My software gives that as a 2.2% drop. Going back, the first larger drop than that in one day I can see was back in September 2001 where there were two drops a few days apart of 4.2% and 4.7%.krisbarry said:
Edit: correction, there was a 2.3% drop in July 2002.
GP
Commsecs TEN news QLD report sugested this was only a single day of profit taking and that it probably wont happen again. "The correction we had to have.", as stated by Craig James at Commsec.
Will be interesting to see if it picks up tommorow.
Will be interesting to see if it picks up tommorow.
tech/a
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Hmm I was buying at close so I'm banking on a reversal (pretty sharp too) for tomorrow.
Could get burnt, but I thought I was reasonably selective with some Discretionary buys. (Resources)
I think long SPI contract overnight with a stop around 4550 might be a good call.
Could get burnt, but I thought I was reasonably selective with some Discretionary buys. (Resources)
I think long SPI contract overnight with a stop around 4550 might be a good call.
GreatPig
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I don't know about all this thudding back to earth with a vengeance stuff.el_ninj0 said:
It might be the biggest one-day drop for a few years, but it's only taken the XAO back to where it was 2-3 weeks ago. By my chart, it would have to go right back below 4200 to hit any sort of longer-term trend line - and that's about another 300 points.
GP
Julia
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GreatPig said:
Exactly, GP. Think back about six months. We did not anticipate at this stage the market would reach the level it has.
To those who took profits yesterday , congratulations. To those who didn't, don't worry. Just hang in there. It always gets better again.
Long time ago I used to worry when my on-paper net worth dropped. Now I don't. As long as you've bought quality, it's just like real estate - it will always recover. Buying companies who pay a healthy dividend with 100% franking helps smooth out one's anxieties during a downturn.
If the worry in the US continues regarding continuing rising interest rate, then we may see faltering market for a while, but even if that's the case, the market will eventually adjust to this factor and recover again. Just think about the shock to the worldwide markets at the time of the September 11 attacks. Now this latest Bali atrocity has caused scarcely a ripple. Sad, but at the same time reassuring to investors.
Julia
doctorj
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I think today was a *massive* over reaction. A single day 2% drop might signal a belief that ongoing profitability at the levels we've seen the last two years won't continue - but lets look at this logically.
Every indication is that Iron Ore prices will rise by a further 10% next year. No one believes oil is going to return to the days of $11/boe. Sure, there are inflationary pressures. Sure Greenspan is going. But surely the indications are that ongoing strong commodity prices should sustain our economy atleast into next year.
Energy stocks were sold off to the tune of 4% today. Incredible when you consider that oil is still at USD$64/barrel and WPL's reserves are only valued at AUD$5/barrel. Still plenty of room to move there...
Every indication is that Iron Ore prices will rise by a further 10% next year. No one believes oil is going to return to the days of $11/boe. Sure, there are inflationary pressures. Sure Greenspan is going. But surely the indications are that ongoing strong commodity prices should sustain our economy atleast into next year.
Energy stocks were sold off to the tune of 4% today. Incredible when you consider that oil is still at USD$64/barrel and WPL's reserves are only valued at AUD$5/barrel. Still plenty of room to move there...
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