A 175 Point Drop in the Dow...

[badcompany]

The divisor is ~.15 meaning a one point move by a Dow stock moves the average ~6.4 points. So, the average Dow stock dropped by ~1 point.

http://i95.photobucket.com/albums/l142/thinlizzy21/1584c3667779b083f8815c187bf6a342_zps6dac7179.jpg

[RaceBookJoe]

Down another 200 as I type this.

[badcompany]

Down another 200 as I type this.


Europe tanking even worse.

That said, and, as you know, when shakeouts happen, they tend to be sharp.

Unfortunately, with long term positions, you have to sit tight, take the abuse and hope it doesn't turn into a full fledged bear.

[RaceBookJoe]

The China news from yesterday probably not helping either.

[badcompany]

The China news from yesterday probably not helping either.

I find economic indicators to be more of a rationalization than a cause for moves.

I see the whole thing as a giant used stock dealership. When the dealers are low on inventory, they get more via shakeouts.

[Saratoga_Mike]

good call by TapeReader a week or so ago on the S&P cash and futures divergence

[RaceBookJoe]

Europe tanking even worse.

That said, and, as you know, when shakeouts happen, they tend to be sharp.

Unfortunately, with long term positions, you have to sit tight, take the abuse and hope it doesn't turn into a full fledged bear.

And that's because prices have to be pushed higher with money, but for prices to tumble, all you need is for buyers to step aside.

I just cant imagine owning a stock without having some type of stop loss.