Wall Street's Down - So What?

[Calliope]

It doesn't make sense any more that the Australian Market should mirror the DOW, as Michael Pascoe sees it;

Standard & Poor’s states the bleedin’ obvious about the US deficit and political paralysis, Wall Street acts surprised for reasons best known to itself and our market opens with a tumble. No, it doesn’t really make sense.
But the ASX slavishly following Wall Street’s mood hasn’t made sense for quite a while now. The encouraging news is that there are signs that we are beginning to do so a little more selectively. Increasingly, the morning forecast that “the Dow dropped last night, so our stocks will fall today” doesn’t necessarily hold true by four o’clock that afternoon.
It’s a slow process, winding back generations of unthinking faith in the almighty power of US economy in the first instance and the dominance of the New York Stock Exchange in the second – one exchange to rule them all.

The relative deterioration of the former is a matter of record – Australia is part of the Asian economy now, not the North Atlantic, with little correlation between our economic performance and that of the US. The latter’s grip on global investment sentiment is harder to shake, even when the world’s most quoted equities barometer – the Dow Jones Index – is acknowledged as an unrepresentative basket of just 30 stocks occasionally given to manipulation.

(My Bolds)


Read more: http://www.smh.com.au/business/wall-streets-down--so-what-20110419-1dmo8.html#ixzz1Jx8VXV9c

 

[burglar]

Yes, I agree!

Have done for some time.

 

[medicowallet]

Yes Mr Pascoe, once again you try to push popular notion

But how about this

America buys from China, China buys from Australia.

America stops buying as much from China, China stops buying as much from Australia.

 

[explod]

Yes Mr Pascoe, once again you try to push popular notion

But how about this

America buys from China, China buys from Australia.

America stops buying as much from China, China stops buying as much from Australia.

So what ? we saw and discussed just these same scenarios on ASF 3 or 4 years ago. We were called Doom and Gloomers back then. ButhHistory repeats, the erly 20th Century saw the same thing and the two great wars were part of the result. Funny it was Germany that owed the US then. Now the US owes China.

When the US are pushed into the corner and all else has failed, those Yankees will acome out shootin IMHO. And a Good Ole fashined God Fearin leader such as Sarah Palin would be just the one to lead such a charge.

 

[Bazmate]

When the US are pushed into the corner and all else has failed, those Yankees will acome out shootin IMHO. And a Good Ole fashined God Fearin leader such as Sarah Palin would be just the one to lead such a charge.

Damn.... I was just going to say that China have now become more of a self licking icecream... as the lower classes turn into middle classes....

but that's an interesting thought about the yanks getting angry about losing their world dominance.

 

[wayneL]

The most important fundamental is sentiment, you guys should know that by now.

 

[Calliope]

Yes Mr Pascoe, once again you try to push popular notion

But how about this

America buys from China, China buys from Australia.

America stops buying as much from China, China stops buying as much from Australia.

Yes, but that doesn't explain the 1.4% drop in our markets today. The most logical explanation is that it is a conditioned reflex. It almost seems that every time the All Ords approaches the 5000 barrier we lose our nerve and retreat in a hurry, using the DOW fall as an excuse. This has gone on for months.

 

[Julia]

Yes Mr Pascoe, once again you try to push popular notion

But how about this

America buys from China, China buys from Australia.

America stops buying as much from China, China stops buying as much from Australia.

Agree, not to mention that China is the lender for much of the US's borrowings.

Yes, but that doesn't explain the 1.4% drop in our markets today. The most logical explanation is that it is a conditioned reflex. It almost seems that every time the All Ords approaches the 5000 barrier we lose our nerve and retreat in a hurry, using the DOW fall as an excuse. This has gone on for months.

I'd say there's such a general sense of disquiet and a lack of confidence in most ecomomies at present that the slightest excuse will be a tipping point for markets.
And, however widely it may have been known that the US is financially a basket case, when Standard and Poors actually comes out with a definitive statement to that effect, it's going to have an effect.

As Wayne says, it's all about sentiment. And sentiment at present is nervous at best imo.

 

[nulla nulla]

The sentiment in the U.S.A is irrationally bouyant at the moment (in my opinion) and the S&P blurp was a small reality check.

Last night the djia was down approx 240 points from early in the session, clawing back 100 points before the close. Tonight I am expecting the djia to recover some more of the losses.

In Australia, the xao has not recovered from the gfc any where near the extent the djia has. If anything our present level is a fairly acurate reflection of the state of our economy (in my opinion). However there is an element of traders in our market ready to sell, sell, sell, every time the djia has an "off" day. These traders appear to want to be the first to cash out, anticipating every "off" day the djia has as the start of the dreaded double dip.

This misplaced sentiment creates buy opportunities. Of course, one day, they may be right. But not today. I'm looking for a bounce in the xao tomorrow as well. Good Luck.

 

[burglar]

... the S&P blurp was a small reality check. ...

A small slap with a big stick !!:

 

[nulla nulla]

Last night the djia was down approx 240 points from early in the session, clawing back 100 points before the close. Tonight I am expecting the djia to recover some more of the losses.

Well I got that part right

This misplaced sentiment creates buy opportunities. Of course, one day, they may be right. But not today(last night). I'm looking for a bounce in the xao tomorrow(today) as well. Good Luck.

Fingers crossed I get this part right as well.

 

[Logique]

Our national fortunes more linked to Asia, but unfortunately we can't ignore the US-China economic interlinks. Did someone say Wall St was down?

 

[medicowallet]

When the US are pushed into the corner and all else has failed, those Yankees will acome out shootin IMHO. And a Good Ole fashined God Fearin leader such as Sarah Palin would be just the one to lead such a charge.

It is amazing how fearful Americans are of losing their power.

Perhaps this has something to do with how they deep down know how they abuse their own.

 

[noirua]

Dow 40 live:
Today's Chart: https://uk.advfn.com/p.php?pid=staticchart&s=DJI^I\DJI&p=0&t=1
Longer term chart: https://uk.advfn.com/p.php?pid=staticchart&s=DJI^I\DJI&p=5&t=1