PDA

View Full Version : A 175 Point Drop in the Dow...


badcompany
01-23-2014, 08:05 PM
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
01-24-2014, 01:20 PM
Down another 200 as I type this.

badcompany
01-24-2014, 01:43 PM
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
01-24-2014, 02:40 PM
The China news from yesterday probably not helping either.

badcompany
01-24-2014, 02:50 PM
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
01-24-2014, 02:55 PM
good call by TapeReader a week or so ago on the S&P cash and futures divergence

RaceBookJoe
01-24-2014, 03:06 PM
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.