What happened today?

[rub92me]

Re: What happened today

HI guys, any idea what caused the market to have a sharp turn and end down today?? I am puzzled.
Possibly something to do with the Merrill Lynch loss? If so, what does that speak for tomorrow expected performance??

In technical terms, we saw a tent shape today. You don't want to be in a tent when bears are around.

 

[wayneL]

Re: What happened today

I'll still be laughing. The US market has been a joke for some time.... but, never fight the ticker.

Has there ever been such a clear example of this truth. A 200 pt turnaround and talk of further Fed action. This is totally irrational. Further Fed action means the economy is in deeper doo-doo than initially thought. How can this be bullish?

But as the second part of my comment goes... never fight the tape.

(actually there where really clear trading patterns for a daytrader today... can't moan too much )

 

[Porper]

Re: What happened today

(actually there where really clear trading patterns for a daytrader today... can't moan too much )

There was a great a,b,c pattern formed a couple of hours ago on the Aussie 200 cash contract, suppose it only mirrors the Dow at that time of the morning, text book in fact.

We then had a clear wave 1, which retraced almost to the cent 61.8% before taking off again.I don't day trade but it was clear as day.

It does seem that the smart money is buying into bad news although I don't have the volume data.

 

[Pommiegranite]

Re: What happened today

another red day on the Dow....lol

Who wants to be out before Countrywide reports on Friday?

 

[Nyden]

Re: What happened today

Has there ever been such a clear example of this truth. A 200 pt turnaround and talk of further Fed action. This is totally irrational. Further Fed action means the economy is in deeper doo-doo than initially thought. How can this be bullish?

But as the second part of my comment goes... never fight the tape.

(actually there where really clear trading patterns for a daytrader today... can't moan too much )

Well, wasn't the 100 pt gain I was hoping for, but it seems my dreams almost came true! : Neutral day is always better than a red when you're holding!

 

[qr2007]

Re: What happened today

It is an interesting article to read

"Jim Rogers quits dollar after declaring US recession"

http://www.telegraph.co.uk/money/main.jhtml?xml=/money/2007/10/24/bcnrog124.xml

Should we start a new thread for it???

watch out.

 

[qr2007]

Re: What happened today

another one

http://biz.yahoo.com/rb/071024/investment_rogers.html?.v=3
any comments?

 

[Sir Burr]

Re: What happened today

This is totally irrational.

From Yahoo Finance about the Dow today:

"When the indices retested their early morning lows around 2:00 pm ET and held, buyers stampeded back into the market and drove the Dow back to positive territory an hour later.

The resilience has spurred additional buying efforts, and most likely short-covering activity that has contributed to the expeditious rebound effort."

SB

 

[bigdog]

Re: What happened today

From Yahoo Finance about the Dow today:

"When the indices retested their early morning lows around 2:00 pm ET and held, buyers stampeded back into the market and drove the Dow back to positive territory an hour later.

The resilience has spurred additional buying efforts, and most likely short-covering activity that has contributed to the expeditious rebound effort."

SB

Wall Street recovered from steep losses Wednesday amid hopes for an imminent interest rate cut, but stocks still closed down in response to Merrill Lynch & Co.'s credit-related losses and a sharp drop in existing home sales.

The Dow Jones industrials fell in morning trading by as many as 200 points after the market got one of its most-feared scenarios: Not only is the housing implosion dampening corporate profits, it appears to be accelerating.

But the blue chip index reversed direction later in the day, briefly bobbing into positive territory as rumors circulated that the Federal Reserve -- scheduled to meet next week -- might be lowering the discount rate before then. The central bank has also been adding a substantial amount of liquidity to the financial system over the last three days.

 

[nomore4s]

Re: What happened today

Has there ever been such a clear example of this truth. A 200 pt turnaround and talk of further Fed action. This is totally irrational. Further Fed action means the economy is in deeper doo-doo than initially thought. How can this be bullish?

But as the second part of my comment goes... never fight the tape.

(actually there where really clear trading patterns for a daytrader today... can't moan too much )

It certainly is strange atm, more bad news and the Dow has a 200pt reversal. Oh well, who can understand the markets. All this sweeping under the carpet is just going to make things worse when it all finally hits the fan, imo.

It could get pretty ugly if the Fed don't cut rates, although I have no doubt they will cut rates.

 

[Bushman]

Re: What happened today

another red day on the Dow....lol

Who wants to be out before Countrywide reports on Friday?

Well Countrywide have come and out and announced a $1.2b loss for the quarter...and an expectation that they will be back in profitable territory in the 4 quarter.

I was convinced that Merril's would bring the market down again but it seems the market was expecting a $7.9b write down.

Almost the end of the US reporting season. Does that mean the Dow now pushes up to 14,000 and beyond in the lead up to Christmas? Looks like the market trusts the investment banks to cut the sub prime CDO cancer from their balance sheets and to move on strongly. The only loser from all this subprime mess will be the few million odd US customers who took out sub prime loans with honeymoon clauses and who will now take their place on the financial scrap heap.

I have given up trying to pick the market for the next year. I still think our friend Volatility will be lurking in the woods. But the market and its participants seem to be liking the bigger picture and this keeps dragging the lows back to neutral and beyond. Crazy days.