View Full Version : Dow drops 530, markets rattled
FlyingHunter
08-22-15, 10:23
Blip, correction, or crash. Monday's market opening should be interesting.
Moose-Knuckle
08-22-15, 13:01
I've been listening to some guys that are SMEs when it comes to the laws of economics and some are saying they expect a full on crash in mid September.
But who knows . . . when you amass the debt we have in just the time Barry has been in office one day the house of cards will far. It's just a question of when not if.
Crow Hunter
08-22-15, 14:29
It was a great Tax Loss Harvesting opportunity for me.:cool:
I got to reset the cost basis on a bunch of my taxable holdings and I got to get an interest free loan from the US taxpayer.
I am actually hoping that it keeps going down until at least mid-Sept so that I can TLH again back into my preferred funds and lock in even more losses.
When life gives you lemons, make lemonades.:lol:
Blip, correction, or crash. Monday's market opening should be interesting.
Good time to buy!
Outlander Systems
08-22-15, 14:58
Popping popcorn...
...QE Infinity, bitchez!!!!
Outlander Systems
08-22-15, 15:03
In all seriousness, I'm praying/hoping/wishing the PPT can keep the wolves at the gate until at least this time next year.
One solid year would be a nice period to get my house in order.
That being said, the writing for the dethronement of the almighty dollar is in neon pink all over the wall.
If I could predict whether this will go down Deflationarily vs Inflationarily, I would be getting better sleep for sure.
In all seriousness, I'm praying/hoping/wishing the PPT can keep the wolves at the gate until at least this time next year.
One solid year would be a nice period to get my house in order.
That being said, the writing for the dethronement of the almighty dollar is in neon pink all over the wall.
If I could predict whether this will go down Deflationarily vs Inflationarily, I would be getting better sleep for sure.
The dollar is the prettiest house in an ugly neighborhood. I don't see gold, the euro, the yuan or any other currency challenging it in the forseeable future.
Eurodriver
08-22-15, 15:38
The dollar is the prettiest house in an ugly neighborhood. I don't see gold, the euro, the yaun or any other currency challenging it in the forseeable future.
But...but Glenn Beck said....
Chinese ripple effect and the result of them intentionally devaluing their currency to keep prices low. Hooray global economy.
We should call it the "China Syndrome."
Digital_Damage
08-22-15, 16:20
The dollar is the prettiest house in an ugly neighborhood. I don't see gold, the euro, the yaun or any other currency challenging it in the forseeable future.
This... people have been claiming the demise of the dollar "is just around the corner" since 1974. The simple fact is there is nothing that can replace it right now.
Business_Casual
08-22-15, 16:28
Popping popcorn...
...QE Infinity, bitchez!!!!
Exactly, the end of QE is what caused the crash. The knowledge that the liberal's favorite "pump priming" program did NOTHING to improve the economy will not be mentioned in the media.
Outlander Systems
08-22-15, 17:19
Exactly, the end of QE is what caused the crash. The knowledge that the liberal's favorite "pump priming" program did NOTHING to improve the economy will not be mentioned in the media.
At this point, they might as well keep going with it.
Can-Kicker 9000 (patent pending)
Outlander Systems
08-22-15, 17:20
The dollar is the prettiest house in an ugly neighborhood. I don't see gold, the euro, the yaun or any other currency challenging it in the forseeable future.
Hottest Fat-Chick at the club, my man.
Averageman
08-22-15, 21:16
The dollar is the prettiest house in an ugly neighborhood. I don't see gold, the euro, the yuan or any other currency challenging it in the forseeable future.
I think that is what held us up through out the whole drama with the Chinese market taking a dive, everyone who could got out of yuan in in to dollars.
I think the ripple effect is going to break them in the long run, they have been manipulating the value of their currency and hit a big bubble and now they are screwed.
Outlander Systems
08-22-15, 21:32
https://yt3.ggpht.com/-rjk1WocEWgU/AAAAAAAAAAI/AAAAAAAAAAA/9bUUP_xEM9Y/s900-c-k-no/photo.jpg
Mauser KAR98K
08-22-15, 23:42
The dollar is the prettiest house in an ugly neighborhood. I don't see gold, the euro, the yuan or any other currency challenging it in the forseeable future.
Space credits.
Averageman
08-23-15, 00:00
Chinese ripple effect and the result of them intentionally devaluing their currency to keep prices low. Hooray global economy.
We should call it the "China Syndrome."
I would agree and in this case I'm betting my retirement on it being a hell of a reset and next week it will regain it's losses and surge.
Selling off doesn't mean your out of the market, just adjusting your investments.
Outlander Systems
08-23-15, 08:46
In all honesty, there really are more pressing concerns we should be focused on.
Deez Nuts
Bruce Jenner
Is the dress white or blue
How to mitigate "privilege"
Brangelina
Confederate Battle Flags
Just sayin.
Exactly, the end of QE is what caused the crash. The knowledge that the liberal's favorite "pump priming" program did NOTHING to improve the economy will not be mentioned in the media.
^^^^This. Interest rates can only go one way at this point. I am surprised a correction hasn't happened sooner.
Outlander Systems
08-23-15, 09:30
^^^^This. Interest rates can only go one way at this point.
Negative?
Negative?
Ha, yeah if that happens then we have extreme problems. Don't rule it out. At some point interest rates will have to go up unless we have a complete meltdown.
FlyingHunter
08-23-15, 10:22
DOW (MINI)
FUTURES
Index Close Cur Future Change
16459.75 16467.0 -450.00
Futures Down 450 as of Sunday the 23rd, 11am.
FlyingHunter
08-23-15, 10:23
New News update - China to allow pension funds to join their stock market...desperate times =desperate measures.
From Reuters:
Aug 23 China on Sunday allowed pension funds managed by local governments to invest in the stock market for the first time, potentially channelling hundreds of billions of yuan into the country's struggling equity market.
China published a draft rule on the move for public consultation on June 30, at the height of a recent stock market rout.
Despite a series of official measures aimed at supporting the market, investor sentiment has remained fragile amid continued signs of slowing economy.
The State Council, or cabinet, published the finalised rules on Sunday after shares slumped nearly 12 percent last week, the worst weekly performance since June.
Pension funds will be able to invest up to 30 percent of their net assets in the country's stocks, equity funds and balanced funds, according to rules published on the State Council's website.
Previously, the pension funds could only invest in bank deposits and treasuries.
Together the funds have assets of more than 2 trillion yuan ($322 billion) that can be invested, meaning about 600 billion yuan ($97 billion) could theoretically go into the stock market, state media has estimated.
According to the new rules, pension funds can also invest in convertible bonds, money-market instruments, asset-backed securities, index futures and bond futures in China, as well as the country's major infrastructure projects.
Mauser KAR98K
08-23-15, 10:55
New News update - China to allow pension funds to join their stock market...desperate times =desperate measures.
From Reuters:
Aug 23 China on Sunday allowed pension funds managed by local governments to invest in the stock market for the first time, potentially channelling hundreds of billions of yuan into the country's struggling equity market.
China published a draft rule on the move for public consultation on June 30, at the height of a recent stock market rout.
Despite a series of official measures aimed at supporting the market, investor sentiment has remained fragile amid continued signs of slowing economy.
The State Council, or cabinet, published the finalised rules on Sunday after shares slumped nearly 12 percent last week, the worst weekly performance since June.
Pension funds will be able to invest up to 30 percent of their net assets in the country's stocks, equity funds and balanced funds, according to rules published on the State Council's website.
Previously, the pension funds could only invest in bank deposits and treasuries.
Together the funds have assets of more than 2 trillion yuan ($322 billion) that can be invested, meaning about 600 billion yuan ($97 billion) could theoretically go into the stock market, state media has estimated.
According to the new rules, pension funds can also invest in convertible bonds, money-market instruments, asset-backed securities, index futures and bond futures in China, as well as the country's major infrastructure projects.
Those cats don't know squat about Capitalism.
Im set to ride out this shit storm. I got out back in October or November of last year when the S&P went under its 200DMA for the first time in a while and am sitting in cash which is as safe as I can make my 401k money and actually has outperformed the S&P this year(think I am up .5% and the S&P is in negative territory). Think i got out at ~1800, which after seeing what went on after and it climbing to 2100+, I kind of kick myself for getting out, but I think when this thing comes down this time, it will be as bad or worse than in 07-08. Hopefully people TODAY dont get into the same position as 07-08 and sit in the market as it falls 40-50% and then cry "whoa is me all my retirement is gone, again", but I fear that is exactly what will happen. No lessons learned from last time. Me? ill be laughing all the way to the bank when the next bull market happens.
Averageman
08-23-15, 12:58
New News update - China to allow pension funds to join their stock market...desperate times =desperate measures.
From Reuters:
Aug 23 China on Sunday allowed pension funds managed by local governments to invest in the stock market for the first time, potentially channelling hundreds of billions of yuan into the country's struggling equity market.
China published a draft rule on the move for public consultation on June 30, at the height of a recent stock market rout.
Despite a series of official measures aimed at supporting the market, investor sentiment has remained fragile amid continued signs of slowing economy.
The State Council, or cabinet, published the finalised rules on Sunday after shares slumped nearly 12 percent last week, the worst weekly performance since June.
Pension funds will be able to invest up to 30 percent of their net assets in the country's stocks, equity funds and balanced funds, according to rules published on the State Council's website.
Previously, the pension funds could only invest in bank deposits and treasuries.
Together the funds have assets of more than 2 trillion yuan ($322 billion) that can be invested, meaning about 600 billion yuan ($97 billion) could theoretically go into the stock market, state media has estimated.
According to the new rules, pension funds can also invest in convertible bonds, money-market instruments, asset-backed securities, index futures and bond futures in China, as well as the country's major infrastructure projects.
And when that fails?
Apparently they are wanting another revolution, when folks have their pensions seized or the figure out over night they lost their entire retirement fund there are going to be a lot of very angry chinamen out for blood.
Im set to ride out this shit storm. I got out back in October or November of last year when the S&P went under its 200DMA for the first time in a while and am sitting in cash which is as safe as I can make my 401k money and actually has outperformed the S&P this year(think I am up .5% and the S&P is in negative territory). Think i got out at ~1800, which after seeing what went on after and it climbing to 2100+, I kind of kick myself for getting out, but I think when this thing comes down this time, it will be as bad or worse than in 07-08. Hopefully people TODAY dont get into the same position as 07-08 and sit in the market as it falls 40-50% and then cry "whoa is me all my retirement is gone, again", but I fear that is exactly what will happen. No lessons learned from last time. Me? ill be laughing all the way to the bank when the next bull market happens.
I think the way this all fell in to place we are in a much better position than we were before it happened.
When you're the only game in town, everyone wants to get in and play.
Im set to ride out this shit storm. I got out back in October or November of last year when the S&P went under its 200DMA for the first time in a while and am sitting in cash which is as safe as I can make my 401k money and actually has outperformed the S&P this year(think I am up .5% and the S&P is in negative territory). Think i got out at ~1800, which after seeing what went on after and it climbing to 2100+, I kind of kick myself for getting out, but I think when this thing comes down this time, it will be as bad or worse than in 07-08. Hopefully people TODAY dont get into the same position as 07-08 and sit in the market as it falls 40-50% and then cry "whoa is me all my retirement is gone, again", but I fear that is exactly what will happen. No lessons learned from last time. Me? ill be laughing all the way to the bank when the next bull market happens.
Sorry, but you lost me here. On one hand, you are set to ride out this storm, but on the other hand you have liquidated your 401K to cash? The biggest losers in '08 were the people who jumped out of the market near the bottom and missed the recovery in '09-12. How are you going to laugh all the way to the bank when the next bull market happens if you are holding cash?
Eurodriver
08-23-15, 13:07
The biggest losers in '08 were the people who jumped out of the market near the bottom and missed the recovery in '09-12.
When I got back from Iraq circa Summer 2009 (I was totally insulated from the "Crash"...and had no idea it even happened) I saw Ford shares at ~$5ea and bought three thousand of them before I even knew what happened in the market. I knew there was no way Ford would stay at $5.
Certainly worth way more now than if I just put that cash in the bank...
Sorry, but you lost me here. On one hand, you are set to ride out this storm, but on the other hand you have liquidated your 401K to cash? The biggest losers in '08 were the people who jumped out of the market near the bottom and missed the recovery in '09-12. How are you going to laugh all the way to the bank when the next bull market happens if you are holding cash?
I think he means its not invested in anything presently.
New News update - China to allow pension funds to join their stock market...desperate times =desperate measures.
From Reuters:
Aug 23 China on Sunday allowed pension funds managed by local governments to invest in the stock market for the first time, potentially channelling hundreds of billions of yuan into the country's struggling equity market.
China published a draft rule on the move for public consultation on June 30, at the height of a recent stock market rout.
Despite a series of official measures aimed at supporting the market, investor sentiment has remained fragile amid continued signs of slowing economy.
The State Council, or cabinet, published the finalised rules on Sunday after shares slumped nearly 12 percent last week, the worst weekly performance since June.
Pension funds will be able to invest up to 30 percent of their net assets in the country's stocks, equity funds and balanced funds, according to rules published on the State Council's website.
Previously, the pension funds could only invest in bank deposits and treasuries.
Together the funds have assets of more than 2 trillion yuan ($322 billion) that can be invested, meaning about 600 billion yuan ($97 billion) could theoretically go into the stock market, state media has estimated.
According to the new rules, pension funds can also invest in convertible bonds, money-market instruments, asset-backed securities, index futures and bond futures in China, as well as the country's major infrastructure projects.
How soon before this happens here? I also have to ask, are these pension funds willingly investing in stocks,equity funds, etc, or are they being forced to? I'm guessing they're being forced to. And that to me, is a sure sign of desperation. I guess we'll soon see how this plays out..
The_War_Wagon
08-23-15, 16:46
The only indicators I'LL need to watch.
http://www.kitco.com/images/live/gold.gif?0.9115137362294805
http://www.kitco.com/images/live/silver.gif
The question is, can the ETF shovelers @ Citibank, J.P. Morgan, Goldman-Sachs, et.al., keep ahead of physical demand (I'm betting they WON'T...).
Everything else, is a popcorn fart.
Crow Hunter
08-23-15, 17:24
Sorry, but you lost me here. On one hand, you are set to ride out this storm, but on the other hand you have liquidated your 401K to cash? The biggest losers in '08 were the people who jumped out of the market near the bottom and missed the recovery in '09-12. How are you going to laugh all the way to the bank when the next bull market happens if you are holding cash?
I agree with Sensei.
No one can know what the real bottom is, until after it has happened. So when will you put your cash back in? If you don't put your cash back in, you will lose buying power to inflation unless you invest in Ibonds or TIPS.
The big problem with selling and going to all cash is knowing when to get back in and trying to get over the psychological hump of committing to getting back in. I read about people all the time that got out in 2007/8 and still haven't gotten back in because the "market is at all time highs". It is almost always at "all time highs" when it is going up.:rolleyes:
As long as you have a risk appropriate asset allocation, you will easily be able to "ride it out" without needing to go 100% cash. I use Age-10 in fixed income with the balance in a 60/40 mixture of US/International equities. If I hit my re=balancing tolerance band, I'll sell some fixed income and buy more stocks. If not, I will just keep following my plan and keep adding more every month.
Not to mention, by not being in good quality broad market index funds you are losing out on at least a decent 2% dividend return which will likely beat anything you can get in cash unless you have access to the government TSP G-Fund.
Outlander Systems
08-23-15, 17:41
Ha, yeah if that happens then we have extreme problems. Don't rule it out. At some point interest rates will have to go up unless we have a complete meltdown.
It's the new normal everywhere else. Plus it will be a great way to keep people locked in the casino-gulag, with nowhere else to stick it. It would keep the already-detached-from-reality markets chugging along in Walking Dead mode for a while longer.
Can-Kicker 9000 ACTIVATE
Business_Casual
08-23-15, 19:23
How soon before this happens here?
This is already happening here.
Many pension funds are operating as what some refer to as private equity. They have divisions that buy companies and operate them for profit, then often sell those companies to other investors and record those gains.
Mitt Romney was a PE guy. He would raise funds from investors, buy stupidly-run companies, reorganize them and recognize the gain. This is as old as the Roman empire.
I agree with Sensei.
No one can know what the real bottom is, until after it has happened. So when will you put your cash back in? If you don't put your cash back in, you will lose buying power to inflation unless you invest in Ibonds or TIPS.
The big problem with selling and going to all cash is knowing when to get back in and trying to get over the psychological hump of committing to getting back in. I read about people all the time that got out in 2007/8 and still haven't gotten back in because the "market is at all time highs". It is almost always at "all time highs" when it is going up.:rolleyes:
As long as you have a risk appropriate asset allocation, you will easily be able to "ride it out" without needing to go 100% cash. I use Age-10 in fixed income with the balance in a 60/40 mixture of US/International equities. If I hit my re=balancing tolerance band, I'll sell some fixed income and buy more stocks. If not, I will just keep following my plan and keep adding more every month.
Not to mention, by not being in good quality broad market index funds you are losing out on at least a decent 2% dividend return which will likely beat anything you can get in cash unless you have access to the government TSP G-Fund.
Which is exactly where my TSP money goes to (for now). I am guaranteed the principal back in a worse-case scenario. Granted the return ain't great, but right now and for the foreseeable future security is what I'm after. Looking to retire in about 12 1/2 years so I can't afford a 2008-level loss.
This is already happening here.
Many pension funds are operating as what some refer to as private equity. They have divisions that buy companies and operate them for profit, then often sell those companies to other investors and record those gains.
Mitt Romney was a PE guy. He would raise funds from investors, buy stupidly-run companies, reorganize them and recognize the gain. This is as old as the Roman empire.
I don't mind that..but my real question remains whether or not the Chinese pension funds are willingly investing in things that they weren't allowed to before, or are they being forced? That's the real question..If they're being forced to, that tells me that things in China are far worse than we can imagine. There's a couple of articles over at David Sockman' s contra corner about China that are worth reading. I honestly feel things in China are far worse than we know. We'll find out soon.
Outlander Systems
08-23-15, 20:08
All that gold hoarding may have merely been a hedge against imploding Chicom Gov't assets.
Hopefully the hemorrhaging is stabilized before they go full-retard.
As the Gerald Celente used to say, "Those who lose everything...Lose "it""
There are some high-end Chicom electronics I'd like to scoop up before they go down the drain. Hopefully the exchange rate will work out advantageously for me before the missiles start flyin.
I don't mind that..but my real question remains whether or not the Chinese pension funds are willingly investing in things that they weren't allowed to before, or are they being forced? That's the real question..If they're being forced to, that tells me that things in China are far worse than we can imagine. There's a couple of articles over at David Sockman' s contra corner about China that are worth reading. I honestly feel things in China are far worse than we know. We'll find out soon.
Another bad day on the horizon:
Stock Rout Spreads Through Europe After China Plunge
http://www.bloomberg.com/news/articles/2015-08-23/asia-braces-for-more-selling-as-deepening-stock-rout-boosts-yen
Business_Casual
08-24-15, 06:08
Another bad day on the horizon:
Stock Rout Spreads Through Europe After China Plunge
http://www.bloomberg.com/news/articles/2015-08-23/asia-braces-for-more-selling-as-deepening-stock-rout-boosts-yen
Futures are down, but bouncey. Market has priced a lot of this in already.
Ha, yeah if that happens then we have extreme problems. Don't rule it out. At some point interest rates will have to go up unless we have a complete meltdown.
I selfishly hope interest rates will stay down long enough for me to refi this winter and get some money in real estate.
I'm interested to see oil prices continue to plunge, leading the drop in the market. I see the .gov's intervention starting in the oil industry.
Interesting. Chine asking (probably at the point of a gun) that pensions funds invest in the stock market and simultaneously doing something to drive the market down. HMMMMMMMM. Boy those "private" Chicom pension funds sure got lucky to be able o buy up shares when they are plunging.
FromMyColdDeadHand
08-24-15, 09:14
I was talking to my buddy who is close with an uncle that lived thru the Depression. He's in 90s and he talks about how nothing made money, which is a pretty good description of what is happening now. Even with 'free' (low interest rates) money, people just aren't investing at the mid level. You have Wall Street doing well, but with the interest rates, it would be hard for them not to make money. I'm talking about at the division level of companies and small/mid-sized business owners looking at investing, and it just isn't happening. The only thing that gets green lit is when you have a real short pay off and high likelyhood of success. People aren't just don't have a lot of appetite for risk.
Demographics have something to do with it. The amount and complexity of govt regulations has a bit to do with it. It all leads to a low economic growth model that isn't creating enough wealth.
Dow is down over350 points as I type this. Not a good way to start the week, especially considering how much was lost last week, This begs the question, Correction or Crash ?
Dow is down over350 points as I type this. Correction or Crash ?
That's nothing - it was down 1,000 at the open. Long overdue correction.
FromMyColdDeadHand
08-24-15, 10:06
Heard an ad for home loans with no income verification the other day.
Heard an ad for home loans with no income verification the other day.
I guess they didn't learn anything from 2008..
That's nothing - it was down 1,000 at the open. Long overdue correction.
Wow,.I missed that.. I guess the crash protection team, is hard at work..
FromMyColdDeadHand
08-24-15, 10:14
I guess they didn't learn anything from 2008..
How exactly is Wall Street hurting now relative to the rest of us? I know a lot of Wall Street workers lost their jobs, but the capital class is doing just fine. They learned that if you owe a million dollars they own you, if you owe a trillion dollars, you own them. Hell, even the Greeks figured that out.
How exactly is Wall Street hurting now relative to the rest of us? I know a lot of Wall Street workers lost their jobs, but the capital class is doing just fine. They learned that if you owe a million dollars they own you, if you owe a trillion dollars, you own them. Hell, even the Greeks figured that out.
Wall st won't be.hurting until the zirp gets shut off, until then, it's business as usual....at our expense. Making a housing loan with no income verification is about as foolish as you can get. But if the plan is to buy mortgage insurance and turn a claim in when the loan defaults, and resell the house.again , later, we'll, that's just the same scam as most banks pulled in 2008. That works great until the insurance can't pay up like AIG, in 2008, and us taxpayers ended up on the hook for that, too.
Crow Hunter
08-24-15, 10:36
That's nothing - it was down 1,000 at the open. Long overdue correction.
Also, don't forget that the Dow is just 30 companies.
The S&P500 is a much better approximation of the market as it is at least 500 companies but that excludes all mid and small cap stocks.
In my opinion it is just lots of panicked people hearing about the sky falling yanking out their cash and dumping it into bonds. The "flight to quality" that is the normal result of downward pressure on stocks. That is why you MUST be diversified so that you can weather the volatility (without panic selling) and you can jump on these opportunities. (Be greedy when others are fearful)
Eventually, some "Market Maker" will say, "Holy crap, I can get XXXXXX for that much? Buy, Buy, Buy!!!!" and then all the market followers will jump on the roller coaster again.
I am personally hoping the "rout" continues at least until 9/21/15 so I can TLH back out of this fund I am in now (VTMGX) and get back into VTIAX.:big_boss:
Averageman
08-24-15, 12:23
Down less than 150 points s of Noon central time.
Wondering if this will rally to a gain for the day?'
Down less than 150 points s of Noon central time.
Wondering if this will rally to a gain for the day?'
Nope,I don't think so,as of 2:30est dow was down 398 points.. of course anything is possible in the casino known as Wall st....
Eurodriver
08-24-15, 14:07
We are already half way to our 3 year low...
Eventually, some "Market Maker" will say, "Holy crap, I can get XXXXXX for that much? Buy, Buy, Buy!!!!" and then all the market followers will jump on the roller coaster again.
Already happened
Outlander Systems
08-24-15, 14:33
Calm down, it's only down like 17% from the 52-week high....uh...but green shoots n' shit....derp...recovery...
648 and dropping,we still got about 20 minutes for a rally..The crash protection team better get to work..
And there it is, up about 300points..see. nothing to worry about, the crash protection team has it all under control. Once again proving that the economy can be steered just like a truck...:D
Voodoochild
08-24-15, 15:23
Funnny I was talking to my financial adviser Friday. I was asking him how can people be so stupid to see that the Chinese market has been rigged and propped up with BS. It was on such a ridiculous run that it was bound to implode and guess what it did.. Greed and ignorance is a recipe for disaster.
Funnny I was talking to my financial adviser Friday. I was asking him how can people be so stupid to see that the Chinese market has been rigged and propped up with BS. It was on such a ridiculous run that it was bound to implode and guess what it did.. Greed and ignorance is a recipe for disaster.
You do know that pretty much describes the U.S. market as well.. I guess we just might find out how overvalued the stock market has been, It could be a looong way down to reality...
Fundamentals have been crap for a while and it looks like they've finally run out of bigger suckers to buy....
You do know that pretty much describes the U.S. market as well.. I guess we just might find out how overvalued the stock market has been, It could be a looong way down to reality...
The U.S. stock market plunged by over 6% in a matter of seconds this morning. The Plunge Protection Team (NY Fed) lept into the breach using derivatives to reverse the plunge. As of midday they had successfully reversed 1,000 points of the 1,110 point plunge. But, please take note of Dr. Hussman’s last sentence in the paragraph above. No matter what happens today, the stock market will decline by 40% to 55% over the next year or so. The trigger is meaningless. If it wasn’t China, it would have been Greece, Brazil, or oil prices. The markets around the world are vastly overvalued and will fall no matter what central bankers do or say. The ridiculous storyline about a .25% increase in a Fed controlled interest rate is just smoke and mirrors to keep you distracted from the real issue of unpayable debt and epic bubbles in stocks, bonds and real estate.
http://www.zerohedge.com/news/2015-08-24/rolling-wheelbarrow-dynamite-crowd-fire-jugglers
http://www.zerohedge.com/news/2015-08-24/rolling-wheelbarrow-dynamite-crowd-fire-jugglers
I couldn't agree with the highlighted part more..People
can poo-poo this all they want, But the truth of the matter is there's a day of reckoning coming,and it will be brutal. At some point, people might actually figure out just how stupid Keynesians really are. The price of rejecting their policys will be steep.
Mauser KAR98K
08-24-15, 17:37
I couldn't agree with the highlighted part more..People
can poo-poo this all they want, But the truth of the matter is there's a day of reckoning coming,and it will be brutal. At some point, people might actually figure out just how stupid Keynesians really are. The price of rejecting their policys will be steep.
Though I never ed agreed with Keynesian economics, he never meant for his idea to be done the way it has been going on.
Outlander Systems
08-24-15, 17:58
http://www.zerohedge.com/news/2015-08-24/rolling-wheelbarrow-dynamite-crowd-fire-jugglers
The Plunge Protection Team (NY Fed) lept into the breach using derivatives
When you start seeing the D word in the LameStream media, it's time to bug out.
Though I never ed agreed with Keynesian economics, he never meant for his idea to be done the way it has been going on.
Maybe not, but it's been twisted to the point that it's almost a religion..One which has failed it's followers at every level. When one of their policies fails, it's not because it was a lousy policy, but rather that they didn't do enough of it. QE 1,2,3,are classic examples. Even now, with this correction raging, there's people already demanding that the Fed do more QE, when in fact it was QE that got us into this mess in the first place. Only after the world economy has been wrecked by their policies, will Keynesians admit that they were wrong. Dumbasses!
My thinking in finance is a bit old school. I like to see physical, tangible things. But, that's not the way of the world these days.
My opinion is that this is the greatest house of cards man has ever known. But, since everyone and their dog are now investors by purchasing stocks, mutual funds, or investing by 401k and other IRAs, I think any slaughter and blood bath will correct itself relatively quickly.
7 years ago things were toast. Look at values of stocks and commodities the last couple of years. All kinds of new highs were made. People will get their asses handed to them, and then we'll do it again. The base line is established now. Here and in other countries. The people calling the shots are willing to throw anything real or imaginary to avoid collapse. The appetite for a full trip reset isn't there. Enough people still remember what happened the last time things got real bad.
It's going to be something stupid and unexpected that will start the sequence of events that really effs things up. Like 20% unemployment kind of effed.
We like to roll the dice and be greedy. It's in our nature. As long as everyone participates it works and depression averted. If everyone stays home and says "nope" with their money, skill, purchasing and investments we get to relive 29'. If governments do the protectionist thing, add tariffs, and start retaliatory tariffs, then we get to relive the 30's again. Do both and we get to relive the 40's.
No gold standard, and the fact that everyone really likes each others products these days makes that outcome a lot less likely. Well, that and the fact that there isn't any way in hell we get to build dams, roads, and bridges like last time in the new deal, and umpteen million people dying in WW2 seem to have the ruling class of most countries really motivated to do whatever it takes to keep our house of cards from burning.
Too long, didn't read....... Don't worry, be happy. The dow is just a number. Don't gamble (invest) more than you are willing lose. Be glad that the guys in charge do dumb shit. WW3 is going to suck orders of magnitude than the previous one. Eat your vegetables.
Outlander Systems
08-24-15, 19:38
http://youtu.be/ZDJFyluf4cE
This dude never fails to crack me up.
He attempted to call me out in one of his "Reads the Comments" videos, and responded to it, only furthering proving me right.
What makes him the funniest "Economist" alive is that he makes Paul Krugman look like Bob Chapman.
Dude is a laugh riot.
Outlander Systems
08-24-15, 19:39
My thinking in finance is a bit old school. I like to see physical, tangible things. But, that's not the way of the world these days.
My opinion is that this is the greatest house of cards man has ever known. But, since everyone and their dog are now investors by purchasing stocks, mutual funds, or investing by 401k and other IRAs, I think any slaughter and blood bath will correct itself relatively quickly.
7 years ago things were toast. Look at values of stocks and commodities the last couple of years. All kinds of new highs were made. People will get their asses handed to them, and then we'll do it again. The base line is established now. Here and in other countries. The people calling the shots are willing to throw anything real or imaginary to avoid collapse. The appetite for a full trip reset isn't there. Enough people still remember what happened the last time things got real bad.
It's going to be something stupid and unexpected that will start the sequence of events that really effs things up. Like 20% unemployment kind of effed.
We like to roll the dice and be greedy. It's in our nature. As long as everyone participates it works and depression averted. If everyone stays home and says "nope" with their money, skill, purchasing and investments we get to relive 29'. If governments do the protectionist thing, add tariffs, and start retaliatory tariffs, then we get to relive the 30's again. Do both and we get to relive the 40's.
No gold standard, and the fact that everyone really likes each others products these days makes that outcome a lot less likely. Well, that and the fact that there isn't any way in hell we get to build dams, roads, and bridges like last time in the new deal, and umpteen million people dying in WW2 seem to have the ruling class of most countries really motivated to do whatever it takes to keep our house of cards from burning.
Too long, didn't read....... Don't worry, be happy. The dow is just a number. Don't gamble (invest) more than you are willing lose. Be glad that the guys in charge do dumb shit. WW3 is going to suck orders of magnitude than the previous one. Eat your vegetables.
I owe you a beer for that post.
It proves Max Keiser's Casino Gulag theory.
The Stock Market is the only game in town; thus, my Australian Shephered and my Mutt both own a couple hundred shares of Twitter.
I'm gonna need a metric shit-ton of popcorn.
Outlander Systems
08-24-15, 19:53
Fellas...
...this ain't looking too good:
34742
https://www.m4carbine.net/attachment.php?attachmentid=34742&d=1440464032
Fellas...
...this ain't looking too good:
34742
https://www.m4carbine.net/attachment.php?attachmentid=34742&d=1440464032
Oh shit, no that doesn't look good...Looks like the carnage will continue tomorrow..is it time to panic yet? :D
Outlander Systems
08-24-15, 20:14
Oh shit, no that doesn't look good...Looks like the carnage will continue tomorrow..is it time to panic yet? :D
Nikkei is doing the see-saw act right now.
Meanwhile...
Bean, Bullet, and Band-Aid futures are THROUGH THE ROOF!
FlyingHunter
08-24-15, 20:22
Shanghai Stock Exchange Composite Index opens in about 9 minutes...Here comes Tuesday.
Outlander Systems
08-24-15, 20:24
Shanghai Stock Exchange Composite Index opens in about 9 minutes...Here comes Tuesday.
Dude, I've got Orville Redenbacher on deck!
FlyingHunter
08-24-15, 20:26
Love this headline from Brietbart:
OBAMA LEAVING FOR LAS VEGAS AS STOCK MARKET CRASHES
President Obama returned from his Martha’s Vineyard vacation to Washington D.C. last night, only to wake up to negative headlines about the stock market crashing, partially in reaction to financial troubles in China.
But the president won’t be in the White House to see the market close. Later this afternoon he will board Air Force One for a trip to Las Vegas where he is expected to make a speech at the National Clean Energy Summit to promote his stiff regulatory policy on power plant emissions.
Later this evening President Obama has scheduled a fundraiser for the Nevada State Democratic Party and Catherine Cortez Masto, the Democratic candidate hoping to replace retiring Sen. Harry Reid (D-NV)2%
Vegas, Wall Street, Irony indeed.
.
Nikkei is doing the see-saw act right now.
Meanwhile...
Bean, Bullet, and Band-Aid futures are THROUGH THE ROOF!
Good thing I have a 550 in the basement, I'll be able to load my way to prosperity!! Want 50 rnds of 9mm? That'll cost 1oz of gold...:rolleyes:
Outlander Systems
08-24-15, 20:27
Love this headline from Brietbart:
OBAMA LEAVING FOR LAS VEGAS AS STOCK MARKET CRASHES
President Obama returned from his Martha’s Vineyard vacation to Washington D.C. last night, only to wake up to negative headlines about the stock market crashing, partially in reaction to financial troubles in China.
But the president won’t be in the White House to see the market close. Later this afternoon he will board Air Force One for a trip to Las Vegas where he is expected to make a speech at the National Clean Energy Summit to promote his stiff regulatory policy on power plant emissions.
Later this evening President Obama has scheduled a fundraiser for the Nevada State Democratic Party and Catherine Cortez Masto, the Democratic candidate hoping to replace retiring Sen. Harry Reid (D-NV)2%
Vegas, Wall Street, Irony indeed.
.
Can't make this stuff up.
In the FUSA, life is stranger than fiction.
Outlander Systems
08-24-15, 20:29
Good thing I have a 550 in the basement, I'll be able to load my way to prosperity!! Want 50 rnds of 9mm? That'll cost 1oz of gold...
That is the right attitude. Lemons, meet, Lemonaide.
Love this headline from Brietbart:
OBAMA LEAVING FOR LAS VEGAS AS STOCK MARKET CRASHES
President Obama returned from his Martha’s Vineyard vacation to Washington D.C. last night, only to wake up to negative headlines about the stock market crashing, partially in reaction to financial troubles in China.
But the president won’t be in the White House to see the market close. Later this afternoon he will board Air Force One for a trip to Las Vegas where he is expected to make a speech at the National Clean Energy Summit to promote his stiff regulatory policy on power plant emissions.
Later this evening President Obama has scheduled a fundraiser for the Nevada State Democratic Party and Catherine Cortez Masto, the Democratic candidate hoping to replace retiring Sen. Harry Reid (D-NV)2%
Vegas, Wall Street, Irony indeed.
.
He doesn't care.. he made his money, and besides the secret service will always be protecting him and his family. Besides that, it was Bush's fault.:jester:. One can only hope that whatever neighborhood he flops in after leaving the White house, quickly turns into a ghetto...
FlyingHunter
08-24-15, 21:01
Good thing I have a 550 in the basement, I'll be able to load my way to prosperity!! Want 50 rnds of 9mm? That'll cost 1oz of gold...:rolleyes:
Ok - here's how this transaction would work on Wall Street:
I want the 50rds of 9mm but I have no gold to pay with and not even a down payment of silver, no proof of a job or assets, but I'll sign the mortgage for the 50rds. Outlander will sell you insurance (derivatives) to cover your risk in the event I fail to pay you as promised in the agreement. You pumped out all the 9mm the Dillon 550 could muster and then realized, Hey! no one is paying me. You ask for your 9mm back and I say...sorry, I used all of it my last IPSC match, I didn't even save the brass. You call Outlander to cover your losses. Outlander says get in line, he cannot possibly cover all of these losses, it's simply too many people not paying and to much $ to cover. Good grief man he exclaims - they don't save their brass for reloading! Uncle Sam starts getting nervous because IPSC is such a large sport, it's simply "too big to fail" and they offer sweetheart loans to cover Ralph, Outlander, & Dillon. Someone in the room remarks Uncle Sam doesn't have the money to cover all of this...no worries says Uncle Sam...I'll just print more, tax more, and legislate from the FED Reserve more to solve the shortfall.
Ok - here's how this transaction would work on Wall Street:
I want the 50rds of 9mm but I have no gold to pay with and not even a down payment of silver, no proof of a job or assets, but I'll sign the mortgage for the 50rds. Outlander will sell you insurance (derivatives) to cover your risk in the event I fail to pay you as promised in the agreement. You pumped out all the 9mm the Dillon 550 could muster and then realized, Hey! no one is paying me. You ask for your 9mm back and I say...sorry, I used all of it my last IPSC match, I didn't even save the brass. You call Outlander to cover your losses. Outlander says get in line, he cannot possibly cover all of these losses, it's simply too many people not paying and to much $ to cover. Good grief man he exclaims - they don't save their brass for reloading! Uncle Sam starts getting nervous because IPSC is such a large sport, it's simply "too big to fail" and they offer sweetheart loans to cover Ralph, Outlander, & Dillon. Someone in the room remarks Uncle Sam doesn't have the money to cover all of this...no worries says Uncle Sam...I'll just print more, tax more, and legislate from the FED Reserve more to solve the shortfall.
That story sounds familiar...Hey! They did that in 2008! Here's how I'll work it, no gold, no ammo, no exceptions!:p
I owe you a beer for that post.
It proves Max Keiser's Casino Gulag theory.
The Stock Market is the only game in town; thus, my Australian Shephered and my Mutt both own a couple hundred shares of Twitter.
I'm gonna need a metric shit-ton of popcorn.
Off topic, a while back I actually visited the CME 2002 or 2003 (back when cme and BOT were seperate) when I was in college. I can't remember exactly. Boy was I excited. You know being a farm kid and all.
I have to say, it was one of the most disheartening experiences of my life. All of the pits with the exception of the currency pit were just a handful of dudes drinking coffee and shooting the shit.
We went to the level with dairy, beef, hogs, currency and a few other futures were traded. What a shit show. Currency had like 50 guys just crawling over each other. Total chaos. The class 3 pit was 4 guys drinking coffee together........
Dammit I was so pissed. Milk had taken a roller coaster ride the last few years. My family was broke, couldn't even help me with college. I Couldn't qualify for FAFSA student loan money either. My parents gross income was to high. The fact that they had last about $750,000 the year before pretty much left them nearly bankrupt fell on deaf ears of the FAFSA director for me to get a student loan.
So here I was, in the mecca of all things agriculture..... Ready to kill the four dudes hanging out in the class 3 dairy pit. It's shit. All of it. We get to live and die in any industry that it's a commodity by a hand full of A holes that drink coffee together. Wanna bet they golf together, drink together, party together?........ Then walking by the parking garage just iced the cake for me. So many exotic cars... My goodness....
After that day, years of ups and downs in this career I chose to be a farmer, my conclusion is that it's casino royale. All of it. Place your bets, the house always wins.
That's why I say don't worry be happy. It's so far out of our hands, it doesn't matter. Keep you house in order the best you can, play the game if you wish. If I had a million dollars 3 years ago, I could have turned that into 10 in my line of work. But I didn't. I was the wounded animal running from a pack of blood thirsty wolves. Buy low, sell high, when everyone is broke, be the guy with money. I say this as the broke guy....lol...
I'll still take that beer.
Last year it was Ebola contagion that was suppose to spread across the globe. This year, it's the Chinese economic contagion that will collapse the global markets. Next year has gotta be the zombies...gotta be.
DOW futures are showing +493 at 4:24 eastern time.
S&P is +59.75
Outlander Systems
08-25-15, 03:40
DOW futures are showing +493 at 4:24 eastern time.
S&P is +59.75
I saw that a moment ago. That is positive news.
Outlander Systems
08-25-15, 03:51
Ok - here's how this transaction would work on Wall Street:
I want the 50rds of 9mm but I have no gold to pay with and not even a down payment of silver, no proof of a job or assets, but I'll sign the mortgage for the 50rds. Outlander will sell you insurance (derivatives) to cover your risk in the event I fail to pay you as promised in the agreement. You pumped out all the 9mm the Dillon 550 could muster and then realized, Hey! no one is paying me. You ask for your 9mm back and I say...sorry, I used all of it my last IPSC match, I didn't even save the brass. You call Outlander to cover your losses. Outlander says get in line, he cannot possibly cover all of these losses, it's simply too many people not paying and to much $ to cover. Good grief man he exclaims - they don't save their brass for reloading! Uncle Sam starts getting nervous because IPSC is such a large sport, it's simply "too big to fail" and they offer sweetheart loans to cover Ralph, Outlander, & Dillon. Someone in the room remarks Uncle Sam doesn't have the money to cover all of this...no worries says Uncle Sam...I'll just print more, tax more, and legislate from the FED Reserve more to solve the shortfall.
Dude, that is the most honest analogy I've seen on the current state of Chicanery Economics.
What people don't seem to realize is that all the side bets on side bets; all the swipitty-swip-swap-swindles; all the cronyism, backroom deals, and three card monte hustles are gonna bite us in the collective ass; and when thy do, all the king's horses, all the king's men,all the king's soothsayers, and all the king's dirtbag business partners ain't gonna put Humpty Dumpty's ass back together.
Than can might get kicked down the road, a little longer, but that's the best we will ever get.
Outlander Systems
08-25-15, 03:59
Off topic, a while back I actually visited the CME 2002 or 2003 (back when cme and BOT were seperate) when I was in college. I can't remember exactly. Boy was I excited. You know being a farm kid and all.
I have to say, it was one of the most disheartening experiences of my life. All of the pits with the exception of the currency pit were just a handful of dudes drinking coffee and shooting the shit.
We went to the level with dairy, beef, hogs, currency and a few other futures were traded. What a shit show. Currency had like 50 guys just crawling over each other. Total chaos. The class 3 pit was 4 guys drinking coffee together........
Dammit I was so pissed. Milk had taken a roller coaster ride the last few years. My family was broke, couldn't even help me with college. I Couldn't qualify for FAFSA student loan money either. My parents gross income was to high. The fact that they had last about $750,000 the year before pretty much left them nearly bankrupt fell on deaf ears of the FAFSA director for me to get a student loan.
So here I was, in the mecca of all things agriculture..... Ready to kill the four dudes hanging out in the class 3 dairy pit. It's shit. All of it. We get to live and die in any industry that it's a commodity by a hand full of A holes that drink coffee together. Wanna bet they golf together, drink together, party together?........ Then walking by the parking garage just iced the cake for me. So many exotic cars... My goodness....
After that day, years of ups and downs in this career I chose to be a farmer, my conclusion is that it's casino royale. All of it. Place your bets, the house always wins.
That's why I say don't worry be happy. It's so far out of our hands, it doesn't matter. Keep you house in order the best you can, play the game if you wish. If I had a million dollars 3 years ago, I could have turned that into 10 in my line of work. But I didn't. I was the wounded animal running from a pack of blood thirsty wolves. Buy low, sell high, when everyone is broke, be the guy with money. I say this as the broke guy....lol...
I'll still take that beer.
Hell, I'll buy you six, if our fortunes hold out...
What really makes me want to vomit is the absolute bullshit hustle our markets have become.
Everything is manipulated. Everything.
And shame on all of us for not learning our lesson during the 2000's tech implosion? Twitter is a publicly traded company? Are you kidding me? What, of tangible value, does Twitter produce? I mean, what the hell, what are CB Radio Channel 19 futures looking like nowadays? It's Looneytoons Town.
Meanwhile, the only Economy on earth that is still based on Tangible Industrial Output is getting sucked into a black hole.
It is completely out of our hands. God is great. Beer is good. People are crazy.
Business_Casual
08-25-15, 05:15
Hell, I'll buy you six, if our fortunes hold out...
What really makes me want to vomit is the absolute bullshit hustle our markets have become.
Everything is manipulated. Everything.
And shame on all of us for not learning our lesson during the 2000's tech implosion? Twitter is a publicly traded company? Are you kidding me? What, of tangible value, does Twitter produce? I mean, what the hell, what are CB Radio Channel 19 futures looking like nowadays? It's Looneytoons Town.
Meanwhile, the only Economy on earth that is still based on Tangible Industrial Output is getting sucked into a black hole.
It is completely out of our hands. God is great. Beer is good. People are crazy.
What are you chicken littles talking about? The last time I checked, the cars in my drive are real, the oil they use is real, my real estate is real, my clothes are real... The economy is based on a lot of real goods and services. You really shouldn't worry so much about a few derivatives traders.
Outlander Systems
08-25-15, 06:14
What are you chicken littles talking about? The last time I checked, the cars in my drive are real, the oil they use is real, my real estate is real, my clothes are real... The economy is based on a lot of real goods and services. You really shouldn't worry so much about a few derivatives traders.
Well, shit. Here I was going long on Manicure/Pedicure markets, and Hair-Cut futures.
http://1.bp.blogspot.com/_EtTL1Dx9t9M/TONVp9eDCxI/AAAAAAAAAT8/fQDF1gcjtBI/s1600/jaws-movie.jpeg
"It's a beautiful day in the neighborhood!" Mr. Rogers
http://money.cnn.com/data/premarket/
Outlander Systems
08-25-15, 06:33
"It's a beautiful day in the neighborhood!" Mr. Rogers
http://money.cnn.com/data/premarket/
Go, baby, go!
Dow 20k! Beam us up, Scotty.
For the LOLz of it:
http://youtu.be/qsMc-IswG3w
What are you chicken littles talking about? The last time I checked, the cars in my drive are real, the oil they use is real, my real estate is real, my clothes are real... The economy is based on a lot of real goods and services. You really shouldn't worry so much about a few derivatives traders.
Global derivatives is between 1 and 1.2 Quadrillion (one thousand trillion)........... Global annual GDP is between 50 and 60 trillion.
Your right, your car, house, oil and real estate are real. The problem is that for every dollar of real shit, there are 20 dollars worth of side bet for an easy analogy.
Makes me go cross eyed.
I think we're seeing a stiff feline do it's best rubber ball impression in the US markets...
Crow Hunter
08-25-15, 10:49
That post mortem feline acrobatics is knocking gold DOWN hard. Wow.
I might decide to buy that instead of more International stocks.
S&P closed down 1.35%. It's bad when the dead cat doesn't even bounce much....
Outlander Systems
08-25-15, 15:28
Days like this remind me why I cashed out last year and bought land.
http://www.tradingmemes.com/wp-content/uploads/2014/05/1401328081729.jpg
S&P closed down 1.35%. It's bad when the dead cat doesn't even bounce much....
Today certainly didn't end well. The DJIA was up 440, what turned it?
Outlander Systems
08-25-15, 15:57
Today certainly didn't end well. The DJIA was up 440, what turned it?
Reality!
; )
Today certainly didn't end well. The DJIA was up 440, what turned it?
Like it or not, I think that from this point forward, you may see a rally here and there, but over all the trend is going to be downward..Downward to reality, to where real price discovery is.
Outlander Systems
08-25-15, 18:17
Like it or not, I think that from this point forward, you may see a rally here and there, but over all the trend is going to be downward..Downward to reality, to where real price discovery is.
And enough "corrections" to keep everyone asleep...
Today certainly didn't end well. The DJIA was up 440, what turned it?
People buying the dip. That drove the market up, then those same people sold and the market tanked again. I would bet a lot of wall streeters made a few billion today playing with other people's money. I know my buddy who day trades probably made himself a few hundred thousand bucks today and he only plays with about 100 million of other peoples money.
People buying the dip. That drove the market up, then those same people sold and the market tanked again. I would bet a lot of wall streeters made a few billion today playing with other people's money. I know my buddy who day trades probably made himself a few hundred thousand bucks today and he only plays with about 100 million of other peoples money.
That's what I did. I didn't sell however and will hold on to them. I'm not skilled enough by any means to day trade in that manner. Wish I was!
I'm not skilled enough by any means to day trade in that manner. Wish I was!
He would teach me. It would take 3 years.
I watched him make $1500 for himself in about 2 minutes. He bought ~500k shares of some stock, it went up 20c or something and he dumped them. I think he said he makes 1.5% commission on gains.
The market came up ~2% or so at the open, so if he put the ~100 million he trades with in to a simple index fund that tracked that 2% he personally made 30k. And that would have been at the open in about 10 seconds. He could have then shorted the ~3% drop from there and made another 30-40k.
Its way more complicated than that, but its ridiculous.
He would teach me. It would take 3 years.
I watched him make $1500 for himself in about 2 minutes. He bought ~500k shares of some stock, it went up 20c or something and he dumped them. I think he said he makes 1.5% commission on gains.
The market came up ~2% or so at the open, so if he put the ~100 million he trades with in to a simple index fund that tracked that 2% he personally made 30k. And that would have been at the open in about 10 seconds. He could have then shorted the ~3% drop from there and made another 30-40k.
Its way more complicated than that, but its ridiculous.
That much I know. I also know enough to know if you don't know what you're doing, you can get yourself into deep do do real damn fast. :help:
Good article over Mish' s global economic trend analysis explaining how the dip buyers got hammered today.. Worth a read..
That much I know. I also know enough to know if you don't know what you're doing, you can get yourself into deep do do real damn fast. :help:
I've always.looked at it.like.playing in a casino.. If you can't afford to lose, you've no business being there..
Business_Casual
08-28-15, 06:02
He would teach me. It would take 3 years.
I watched him make $1500 for himself in about 2 minutes. He bought ~500k shares of some stock, it went up 20c or something and he dumped them. I think he said he makes 1.5% commission on gains.
The market came up ~2% or so at the open, so if he put the ~100 million he trades with in to a simple index fund that tracked that 2% he personally made 30k. And that would have been at the open in about 10 seconds. He could have then shorted the ~3% drop from there and made another 30-40k.
Its way more complicated than that, but its ridiculous.
If it takes 3 years to learn how to day trade, you are doing something wrong...
Averageman
08-30-15, 22:23
http://www.cnbc.com/2015/08/30/shanghai-stocks-slip-as-china-halts-market-intervention.html
Mainland equities lost as much as 3 percent on Monday while Dow futures tanked 200 points on reports that Beijing may finally halt its controversial market intervention.
A report by The Financial Times over the weekend said that Beijing will abandon large-scale share purchases, sparking concerns over more declines for A-shares. Beijing may now switch its focus from intervention to stopping those it believes are "destabilizing the market," the FT report said. Suspected state firm buying has propped up A-shares in recent sessions, resulting in two straight days of 5 percent rallies in Shanghai.
FlyingHunter
09-01-15, 16:50
Dow drops 2.84% or around 469 today 9-1-15. I was wondering if we would have repeat of my OP...530 point drop. Fasten your seatbelt.
Outlander Systems
09-01-15, 16:52
Dow drops 2.84% or around 469 today 9-1-15. I was wondering if we would have repeat of my OP...530 point drop. Fasten your seatbelt.
I though the decline was just a "correction?"
Here's Why It Can Get Much Worse http://www.cnbc.com/2015/09/01/heres-why-it-can-get-much-worse-technician.html
Doc Safari
09-01-15, 17:12
I though the decline was just a "correction?"
"Correction" is Wall Street Insider code for "you guys just keep doing what you're doing until I can get my money out."
Doc Safari
09-01-15, 17:13
Here's Why It Can Get Much Worse http://www.cnbc.com/2015/09/01/heres-why-it-can-get-much-worse-technician.html
Can someone translate this into English?
All I know is that I believe there is going to be a major fall in the markets between now and the end of the year. I would not have money in Wall Street at all right now.
Moose-Knuckle
09-01-15, 17:29
Can someone translate this into English?
https://www.youtube.com/watch?v=-W6as8oVcuM
FlyingHunter
09-01-15, 19:42
"Correction" is Wall Street Insider code for "you guys just keep doing what you're doing until I can get my money out."
Bingo...
Here's an interesting chart showing how September tends to be ugly if August drops 5% or more:
http://fortune.com/2015/09/01/stock-market-september/
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