General Discussion
Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region Forumsstock futures in free fall
dow futures down 320 points. dropped 100 points in about 10 minutes
china down over 8% at one point
its going to be an interesting monday
Historic NY
(37,453 posts)I can't believe this crap is happening again.
Response to Historic NY (Reply #1)
PowerToThePeople This message was self-deleted by its author.
Renew Deal
(81,876 posts)It's the nature of the system
Javaman
(62,534 posts)Recursion
(56,582 posts)This isn't (yet) something like 2008. This is people moving money from stocks into bonds.
Warpy
(111,358 posts)If we're not lucky, a few fat cats at the top are in full panic and will fuck everything up.
The hosing the commodities market has taken across the board in the last few months has looked eerily like 2008. Other stuff doesn't look like 2008.
still_one
(92,421 posts)GummyBearz
(2,931 posts)What on earth are you talking about? A general definition of a bear market is 20% down from peak across a wide range of index's. Were not even there yet... capitulation is what we saw briefly in 08 when the Dow was over 50% down from peak.
reformist2
(9,841 posts)jonno99
(2,620 posts)Response to reformist2 (Reply #15)
onenote This message was self-deleted by its author.
GummyBearz
(2,931 posts)I did buy a couple stocks early this morning... i think they will be short term in the red, but its my retirement fund. 30 years from now they should do well
still_one
(92,421 posts)start off that way on Monday, and then the shorts will start to cover, and the big boys will come in and start to stabilize it.
Wether this is the start of a bear market I don't know, but panic selling is what was occurring, and that is capitulation
GummyBearz
(2,931 posts)But I think a lot of the sell off the last 2 trading days has been due to large trading desks selling off their over priced US stocks to cover their losses in China. If China is down 8% tonight like the OP says, I don't think you will see any stabilization monday.
Capitulation is when the majority of people (including 401k owners) pull out of the market. That is not happening at this point... but I agree with you, if there were a lot of crystal ball readers who went short on Wednesday last week there could be a short covering rally tomorrow.
rdking647
(5,113 posts)GummyBearz
(2,931 posts)Along with those who bought options or on the margin. Call options will be on sale tomorrow
still_one
(92,421 posts)suspect that has also contributed to some of the sell off because they are forced to meet their margin requirements:
http://www.bloomberg.com/news/articles/2015-06-15/china-s-next-bear-market-seen-in-358-billion-of-margin-loans
I do agree with your observation, that it wasn't "main street" involved in the selling on Friday
Quackers
(2,256 posts)a kennedy
(29,711 posts)Recursion
(56,582 posts)So fixed income looks comparatively more attractive than equities right now.
Quackers
(2,256 posts)As soon as they announce that, hang on for the ride.
Recursion
(56,582 posts)GummyBearz
(2,931 posts)They inflated bubble after bubble to reduce the effect of the previous bubble bursting. Now with a bubble in both stocks, bonds, and maybe(?) real estate at the same time, along with an already zero interest rate policy and ineffective QE, they are effectively out of bullets to shoot. Hell they ran out of those years ago and have been using a sling shot but are now out of rocks. The easiest thing is a negative interest rate policy. Step by step we are following Japan's example into their "lost decade" (I think its more like 2+ decades now).
Thanks federal reserve, thanks for all your help
Agschmid
(28,749 posts)joshcryer
(62,276 posts)They always say they will but never do.
Recursion
(56,582 posts)True that.
Liberal_in_LA
(44,397 posts)rdking647
(5,113 posts)i put low ball orders in to buy down 500,750 and 1000
Newsjock
(11,733 posts)About to head below 16,000.
greytdemocrat
(3,299 posts)BillZBubb
(10,650 posts)We are overdue for a correction given the historical pattern. The Chinese market is in worse shape. It is due for a big correction and that has probably started this summer.
Fundamentally, though, nothing much has changed. Chinese economic growth is coming back to earth. 10% GDP growth per year is not sustainable. Their market has to adjust to that reality. It may look scary, but given the huge run up of the past several years, it isn't.
No reason to panic.
seveneyes
(4,631 posts)reformist2
(9,841 posts)And then at the same time, you suddenly have people selling that weren't even thinking about it 5 days ago.
So weird.
rdking647
(5,113 posts)Agschmid
(28,749 posts)rdking647
(5,113 posts)6chars
(3,967 posts)Fearless
(18,421 posts)Buy low, sell high. Of course, if only it were that simple.