Is tonight the night the US markets really fall apart?

[mick2006]

Well guys is tonight the night that the global equity markets finally completely fall apart?

I stayed up late last night and got the feeling that the market was pretty close to the final capitulation right up until the final rally in the last 45 minutes, as a result of that last minute buying it may have covered over the cracks for another night, but with the state of markets in Asian trade and the early falls in the US futures maybe the fireworks will be on tonight.

Surprised by the lack of a major afternoon sell off in the ASX today, I don't know about you guys but there might be a few who wish they didn't buy into the market today come Monday morning.

 

[Uncle Festivus]

Re: Is tonight the night the US markets really falls apart?

Pure conjecture but I could see glimmers of hope in the small rallies today and a levelling off in "panicness"? Then again, could be the calm before the real storm hits.

 

[numbercruncher]

Exactly why I was a chicken little today in regards to buying!


Too much has happened to fast and too little is known about too much for this all to be a flash in the pan I thinks!

 

[mick2006]

looks like its getting worse by the minute

Nikkei Down 874 points
Hang Seng Currently Down 1140 points

Dow Futures Down 166
Nasdaq Down 22
S&P Down 21.5


ASX futures sitting around 100 points below closing level of the index


I know there is a long time between now and 6 am tomorrow morning but geez it certainly is looking sick.


Has anyone been watching CNBC today they are talking about a group refered to as "Defenders of the Market" which is rumoured to act on behalf of the US Government/Fed Reserve to stop a repeat of 1987, and they are believed to be the ones responsible for the late rally in the US markets last night.

Any thoughts?

 

[numbercruncher]

Look at the pace at which the Yen carry trade is unwinding and the massive drops in the AUD/NZD.

Amazing to watch!

 

[Freddy I]

Mick,

''Defenders of the Market''..........Weren't they in the Da Vinci Code

 

[dubiousinfo]

Has anyone been watching CNBC today they are talking about a group refered to as "Defenders of the Market" which is rumoured to act on behalf of the US Government/Fed Reserve to stop a repeat of 1987, and they are believed to be the ones responsible for the late rally in the US markets last night.

Any thoughts?

That would be the Plunge Protection Team (PPT)

There are a few theads here on this issue, try a search.

 

[mick2006]

The Aussie Dollar is now at 76.85 US cents, one thing that will become a problem again is inflation and petrol prices as the strong australian dollar was helping in both cases.

Wouldn't be surprised if petrol hit 1.50 a litre in around 2 weeks.

 

[wayneL]

That would be the Plunge Protection Team (PPT)

There are a few theads here on this issue, try a search.

I hear there is a new group that has just started - The PET (Plunge Exacerbation Team). They started of in the mortgage market and are having a crack at everything now.

 

[caribean]

Options expiration tonight, or rather tomorrow morning, could make it more interesting?
Maybe to the upside.

 

[Porper]

Well guys is tonight the night that the global equity markets finally completely fall apart?

There are probably millions of headlines similar to this all around the world.

Maybe a case for a self fullfilling prophecy here.

It would probably be better to have a major panic & crash now rather than being in a slow prolonged decline.

There is one thing for sure, the richer will get richer and the poor, poorer.

 

[mick2006]

what a difference an hour makes the hang seng is now only down 200 points after being down over 1100 points not that long ago.

I think you would have more chance to win the lottery than pick where the hell the markets will finish tonight.

 

[Porper]

what a difference an hour makes the hang seng is now only down 200 points after being down over 1100 points not that long ago.

I think you would have more chance to win the lottery than pick where the hell the markets will finish tonight.

Well, the trend seems to be huge losses followed by big re-bounds to finish strongly.

Normally this would be very bullish.

In this market, means very little, but we should trade with the information we have.At the moment it is just extremely volatile.

My money is a bounce and a big, big sell off in a week or 2.

 

[wayneL]

Well, the trend seems to be huge losses followed by big re-bounds to finish strongly.

Normally this would be very bullish.

In this market, means very little, but we should trade with the information we have.At the moment it is just extremely volatile.

My money is a bounce and a big, big sell off in a week or 2.

There is huge money in this market trying to support it, it's a confidence play, but I wonder if the masses will have to balls to jump in?

i.e. I wonder how strong any bounce will be. If I was an "investor" I would consider this market a pox to be avoided until much later.

 

[GreatPig]

If you held some put warrants and there was an '87 style crash with a drop of 30% or so, do you think the MM would give you fair value for the warrants or they'd just take their bat and ball and go home?

GP

 

[Porper]

There is huge money in this market trying to support it, it's a confidence play, but I wonder if the masses will have to balls to jump in?

i.e. I wonder how strong any bounce will be. If I was an "investor" I would consider this market a pox to be avoided until much later.

Well the smart money players could be playing us all.All these rebounds are right on fib support levels, maybe trying to lull us all into a false sense of security.

I was watching when the Dow was plummeting, as soon as the index started re-bounding you could almost smell what was about to happen.It did, but I agree in that it was artificially being supported.Still this may well work.I won't be in without GSL'S that is for sure.

I think there will be big buying tonight from the protection team to boost confidence, we will see.

 

[powerkoala]

currently most of europe is trading higher.
will this influence US to be in green area as well or it will follow the smackdown in asia ?
what happen to hangseng and nikkei is scary, but hangseng rebound similar to asx when it went down 5% as well. so i guess US will be in green area today.

 

[Smurf1976]

This is pure speculation on my part, but I wouldn't be surprised if someone really big has been seriously wounded in the credit market strife. Rams etc ain't big in that context.

I'm thinking in terms of a major investment bank or someone like General Motors etc finding themselves in serious trouble. I just can't believe that with so much happening the end result will be limited to a few hedge funds and non-bank mortgage lenders.

 

[caleb2003]

LONDON (Thomson Financial) - The US Federal Reserve Bank has quietly relaxed its debt collateral rules, allowing borrowers to use distressed debt as collateral to raise emergency funds, the Telegraph reported, citing banking sources.

The change, carried out yesterday, means that banks are able to use asset-backed commercial paper (ABCP) loans as collateral to raise funds, the newspaper said.

The Telegraph said this change in regulations, combined with a quiet reduction in the rate on four-week Treasury Bills to 4 pct, shows the Fed stepping in behind the scenes to prevent a meltdown across global markets.

 

[>Apocalypto<]

I hear there is a new group that has just started - The PET (Plunge Exacerbation Team). They started of in the mortgage market and are having a crack at everything now.

HA HA HA HA HA

Wayne that is a classic absolutely classic!

LOL