Imminent and severe market correction

[krisbarry]

Woke up and read the doom and gloom thread, WHAT CORRECTON?, WHAT CRASH?

Dow down a poltry 20 points, Bears go hybern8!

 

[Awesomandy]

Housing starts are at the lowest levels for 14 years, but inflation is quite acceptable. This means there is a hope for another rate cut, so the dow survives for now. The market is also helped by Intel and Yahoo, with their profit figures.

 

[nikki]

Or try this link: http://sites3.barchart.com/pl/ibnetwork/

It will say Unauthorized Access, but just press the "Go" button on your browser and it will come up.

thanks for that - but what is the "go" button on my browser. i know my browser well but i kept saying "go" and it would ignore me!!!

 

[nikki]

Woke up and read the doom and gloom thread, WHAT CORRECTON?, WHAT CRASH?

Dow down a poltry 20 points, Bears go hybern8!

ok ok ok you are right - i am a bear but all this time i thought i was lamb!!

i just realised this when i read the following headline on the guardian weeklies web page the wrong way: "France prepares for Black Thursday"

it is about unions going on strike and has nothing to do with a sharemarket plunge in france.

 

[Uncle Festivus]

It's looking like the irrepressible excess liquidity bull market driver never went away, as the maestros in the US Fed and Reserve are working overtime to avert further fallout from the property bust. Even oil at (non inflation adjusted) records has failed to dent the enthusiasm. About time we had some more bears capitulating .

Apparently the best game in town is to get as much money into China to get set before a currency revaluation in an attempt to curb runaway inflation, hence the parabolic chart for their stock market. Basically going up not so much for the intrinsic value to be had from the stocks themselves, but as a currency play, so maybe we have a Renminbi carry trade emerging? Worse case scenario here for foreign investors is if the Chinese authorities place a ban on currency flows out of the country should a market 'event' take place. High stakes game being played out here?

If the Fed cut's rates again then be very very worried, because they are too about a housing led recession. The scene would be set for $AU parity, reducing earnings for (commodities) exporters, cheaper imports fuelling inflation, and a commensurate action on interest rates from the Reserve bank, maybe during an election. Failure to act independently would risk being behind the curve on inflation.

At the very least there will be, and is already happening eg RIO, margin pressure from rising input costs on a global scale, as there is two sides to the commodities bull, even for the producers who are not immune from increased costs.
It's coming to a head, only the timing is unknown; except for time analysts maybe, who say repentance is close at hand?

 

[krisbarry]

After todays stellar bullish run on the stock market, I think all the bears can hybern8 tonite with their soft cuddly teddy bears...waaa...waaa...booo...hooo

Note the band-aid on teddys head...lol

 

[Porper]

After todays stellar bullish run on the stock market, I think all the bears can hybern8 tonite with their soft cuddly teddy bears...waaa...waaa...booo...hooo

Note the band-aid on teddys head...lol

Somebody said the other day that we are obviously in a massive Bull market, and this is with all the perceived bad news coming through with the credit crunch, economy etc, etc.

The time to worry is when all the news is bullish.

Never a truer word said.

 

[krisbarry]

There is plenty of wasted opportunites when sitting in cash....waiting for the crash.

Never a truer word said. Go the bulls...go!

 

[bean]

Interesting to see tonight how much weakness is in the US markets.
May open up down first support not to far under it previous close next is nearly 1% down then 2% down.
But the Nasdaq wants to higher and is the most Bullish
But depends how weak at the opening

 

[Porper]

There is plenty of wasted opportunites when sitting in cash....waiting for the crash.

Never a truer word said. Go the bulls...go!

Absolutely agree, that is why we should trade the market and not the perceived news.

The crunch will come eventually though, could be next week , month , year or maybe not in our lifetime.

The blind bulls will be wiped out though, just as will the blind bears, those that can adjust to a different market will survive and prosper.

 

[sassa]

Something has "spooked" the markets overseas.In half an hour,the S & P lost
.67%,the Nasdaq 0.4%,the Dow 0.4% and the FTSE 0.8%.

 

[sassa]

Something has "spooked" the markets overseas.In half an hour,the S & P lost
.67%,the Nasdaq 0.4%,the Dow 0.4% and the FTSE 0.8%.

Have found reason.

http://money.cnn.com/2007/10/18/news/companies/boa_earnings/index.htm

 

[bean]

Interesting to see tonight how much weakness is in the US markets.
May open up down first support not to far under it previous close next is nearly 1% down then 2% down.
But the Nasdaq wants to higher and is the most Bullish
But depends how weak at the opening

Nothing spooked it, it was just the matter of what weakness

 

[BentRod]

Sassa... you said the same last night.

Don't even bother with the futures, The only thing that matters is the close!

 

[>Apocalypto<]

Sassa... you said the same last night.

Don't even bother with the futures, The only thing that matters is the close!

very good point......

If i had a 1$ for every time the futures did not follow though on there precived direction I would be making a good living!

Follow the patterns in the chart they never lie, well not that often!

 

[BentRod]

If i had a 1$ for every time the futures did not follow though on there precived direction I would be making a good living!

Totally agree TradeIt, I would only bother with the futures if I was trading em(which I'm not).

It is no indicator of the close that's for sure.

 

[sassa]

Totally agree TradeIt, I would only bother with the futures if I was trading em(which I'm not).

It is no indicator of the close that's for sure.

I should know better.With the jobless an extra 25,000 over estimates and the Bank of America's results worse than expected,a trader on Bloomberg said that the market would be close to line ball as this gives the Fed extra impetus for a rate cut Oct.31.With the Philadelphia survey expected to come in much weaker during trading,I guess this will give the investors extra heart for a rate cut.

 

[Awesomandy]

Right now, it doesn't matter what the news is. If the banks have good profit figures, then the market will go up. If they have bad numbers, people will think that rates need to be cut, and the market will go up too.

 

[sassa]

Right now, it doesn't matter what the news is. If the banks have good profit figures, then the market will go up. If they have bad numbers, people will think that rates need to be cut, and the market will go up too.

How true and so I repeat this post-

weak data = Fed ease, stocks rally
consensus data = lower volatility, stocks rally
strong data = economy strengthening, stocks rally
bank loses $4bln = bad news out of the way, stocks rally
oil spikes = great for energy companies, stocks rally
oil drops = great for the consumer, stocks rally
dollar plunges = great for multinationals, stocks rally
dollar spikes = lowers inflation, stocks rally
inflation spikes = will inflate all assets, stocks rally
inflation drops = improves earnings quality, stocks rally

 

[BentRod]

I agree chaps.

The market will do what it wants to do regardless of news.
Trying to predict reaction to news is crazy IMO.