Big drop today

[clowboy]

Thanks for that chart WayneL

Very interesting

 

[GreatPig]

Seems like in times of trouble diamonds are a trader's best friend

GP

 

[Yippyio]

Our market does the red baron once again. The drop is not limited to one sector but right across the board

 

[el_ninj0]

Anyone know what the analysts have said today? i.e Comsec, NAB, Westpac?
Usually they have something not so useful to add on days like today.

The market took another severe beating, and its starting to worry me a bit i have to say. Hopefully tommorow will bring something good onto the books.

 

[dutchie]

El

Will probably depend on tonights DOW being up.

The Americans seem to have lost confidence and are afraid of inflation (probably with good cause).

We don't have that worry at the moment and our economy appears to be in reasonable shape. Also we have lots of good resources below the ground, even though we don't take very good care of the top, that the rest of the world are keen to get their hands on.

We have cast off the British, I wonder how long it will take us to cast off the USA, especially as far as our stock market is concerned.

 

[happytrader]

Hello there!

Colin Twiggs of www.incrediblecharts.com puts out an excellent trading diary where he covers the state of world indices including the xao, gold, treasury yields and their possible direction for the week. It is free and you can access it immediately.

Cheers

Happytrader

 

[SmallStocks]

"October has had the highest degree of volatility in the Australian market and this was increased today due to more pressure from the US overnight, regarding US interest rates fears and spiraling concerns about inflation......Trading in the US also finished lower overnight with General Motors Corp losing nearly 10% of their value due to Delphi Corps bankruptcy filing - this led both the Dow Jones Industrial and S&P indexes to close lower and potentially head towards five month lows."

 

[It's Snake Pliskin]

We have cast off the British, I wonder how long it will take us to cast off the USA, especially as far as our stock market is concerned.

Please explain dutchie.

 

[It's Snake Pliskin]

I see it as being healthy for the market if we have a topsy turvey month. Does it need to keep going up overstretching realistic value? Give me a few more good drops to find some good value.

 

[tech/a]

Please explain dutchie.

The US sneezes we get a dose of the FLU.

 

[krisbarry]

Thats why Bush wants our Relenza (BTA)...LOL

I do not hold.

 

[Milk Man]

El

Will probably depend on tonights DOW being up.

The Americans seem to have lost confidence and are afraid of inflation (probably with good cause).

We don't have that worry at the moment and our economy appears to be in reasonable shape. Also we have lots of good resources below the ground, even though we don't take very good care of the top, that the rest of the world are keen to get their hands on.

We have cast off the British, I wonder how long it will take us to cast off the USA, especially as far as our stock market is concerned.

We give resources to China- they turn them into SUV's and such and give them to America. If Billy-Bob caint buy his new truck we aint get no money.

 

[tech/a]

We give resources to China- they turn them into SUV's and such and give them to America. If Billy-Bob caint buy his new truck we aint get no money.

Not quite.

The Yanks arent as stupid as we are.
90% of their vehicals are home grown.Imports are a rare breed.
Not only domestic but also commercial vehicals.
Farm and earthworks equipment.

Other than raw product,the Yanks import very little that their own country cannot produce.They arent rich because they import.

How do you think Holdens and Ford would go in Australia if there were fewer imports?

 

[Milk Man]

Not quite.

The Yanks arent as stupid as we are.
90% of their vehicals are home grown.Imports are a rare breed.
Not only domestic but also commercial vehicals.
Farm and earthworks equipment.

Other than raw product,the Yanks import very little that their own country cannot produce.They arent rich because they import.

How do you think Holdens and Ford would go in Australia if there were fewer imports?

Good point. I was just saying that China consumes resources from Australia and the US consumes consumables from China. Could've used a different example. Economists seem to think this is the driving force behind China's economy from what I can gather. So you're saying this is not the case? Not saying youre wrong: I dont know the numbers myself. Those harvard types get it wrong half the time anyway!

Totally agree that holden should build its cars all here! (thats what you meant?) That way we'd have a Double Over-Head Camshaft Aussie V8 instead of that Gen III heap of crap. Holden had one designed and everything!

 

[tech/a]

Yes milky,basically importers are poor and exporters rich.
Just ask the arabs.
Balance of trade?---how do governments pay their debts?
How do countries stay rich---by producing (Manufacturing) AND exporting.
China NOW has the idea! Wont be long and the Chinese will be saying "God Bless America!!--
Shown the way by the Yanks--could backfire though!!

Like most of the "thoughtful medling things the Yanks stick their nose into"

 

[Yippyio]

Not quite.

The Yanks arent as stupid as we are.
90% of their vehicals are home grown.Imports are a rare breed.
Not only domestic but also commercial vehicals.
Farm and earthworks equipment.

Other than raw product,the Yanks import very little that their own country cannot produce.They arent rich because they import.

How do you think Holdens and Ford would go in Australia if there were fewer imports?

Hi Tech/a

The US may not import the majority of their vehicles but the highest selling motor vehicle, by units is Toyota. The days of the US motor industry are numbered with all US manufacturers struggling to compete and are rapidly losing market share.

I am not sure what percentage of GDP the motor industry accounts for but the US imports 85% of their consumerables i.e. clothing, electrical, fragrences, cosmetics etc.

The majority of our resource exports to China is being absorbed by China's domestic demand, not for their export manufactoring demand. China is experiencing an industrial revolution fuelled by an emerging middle class who's numbers have created a market double in size to the US.

To give you some perspective of the building that's going on in China, a 3rd of the worlds concrete production is currently being imported by China.

 

[Smurf1976]

But wouldn't China's domestic economy run into trouble if the US stopped importing so much from them? Much like Australia's domestic economy would run into trouble without resource exports?

 

[Yippyio]

But wouldn't China's domestic economy run into trouble if the US stopped importing so much from them? Much like Australia's domestic economy would run into trouble without resource exports?

Why would Americans all of a sudden stop consuming? They wouldn't. artyman:

Imports are made up of various industrial sectors, a slow down in one sector may mean a pick up in another, thus having a neutral effect on overall import/ exports.

A slow down in the US means 3% growth instead of 3.5%, negligible and hardly going to worry Chinese Manufacturers. :samurai:

 

[Yippyio]

11.00am and the ASX is getting hammered once again. A slight drop in the US translates into a slaughter on the ASX.

 

[wayneL]

Why would Americans all of a sudden stop consuming? They wouldn't.

Unless they do. Unless they have to. Which they will.

I won't bore you with an extended regurgitation of the facts, but the US is an accident waiting to happen.