Stock Market falling fast overnight

[JustRalph]

http://money.cnn.com/data/premarket/

S&P -13.20 / -1.16%
Level 1,122.10
Fair Value 1,133.85
Difference -11.75
Nasdaq -22.50 / -1.18%
Level 1,887.25
Fair Value 1,905.33
Difference -18.08
Dow -127.00 / -1.20%
Level 10,482.00

down 127 at 11:15p Sunday night.

[Valuist]

Meanwhile gold and silver up another 1% (about) each.

[Robert Goren]

Never be long over the weekend. Nothing good can happen and lot of bad things can happen.

[bigmack]

Too many interested in it moving. Forget about the direction.

Today's savvy ride the wave in either direction.

Sideways can be time consuming with little to show for it.

[boxcar]

Meanwhile gold and silver up another 1% (about) each.

Actually, gold is down slightly (6.00) since Friday's close. But...I believe gold will be soaring through the stratosphere in the foreseeable future.

The big problem with owning it, though, (for many people) will be when the state wants to confiscate it again, like it did early in the last century. And if things really turn south during BO's watch, gold owners can bank on this happening. After all...it's just not fair -- it would be a great "social injustice" for some to own something of real intrinsic value, while the poor don't have diddly squat. :rolleyes: Plus the state would want everyone on the same page by forcing people to own the same worthless paper money.

Boxcar

[GameTheory]

Actually, gold is down slightly (6.00) since Friday's close. But...I believe gold will be soaring through the stratosphere in the foreseeable future.

The big problem with owning it, though, (for many people) will be when the state wants to confiscate it again, like it did early in the last century. And if things really turn south during BO's watch, gold owners can bank on this happening. After all...it's just not fair -- it would be a great "social injustice" for some to own something of real intrinsic value, while the poor don't have diddly squat. :rolleyes: Plus the state would want everyone on the same page by forcing people to own the same worthless paper money.

Certain types of gold are protected by law and cannot be confiscated (coins of a certain period), at least without a change in the law. But there is reason to suspect that the government manipulates the gold market to keep it from soaring upward as it ought to in times of uncertainly about the fiat currency (and has been doing so long before Obama came along), but possibly this is just conspiracy-theory stuff.

[boxcar]

Certain types of gold are protected by law and cannot be confiscated (coins of a certain period), at least without a change in the law. But there is reason to suspect that the government manipulates the gold market to keep it from soaring upward as it ought to in times of uncertainly about the fiat currency (and has been doing so long before Obama came along), but possibly this is just conspiracy-theory stuff.

Correcto -- but there is a lot that is not protected by law. This is the gold to which I was alluding.

There are many big players in the market other than the U.S. So, yes, it's in the best interest of the U.S. to try to control the prices; however, I think the government's leverage will only take them so far as world economies continue to deteriorate.

Boxcar

[RaceBookJoe]

Meanwhile gold and silver up another 1% (about) each.

Gold may have been down the other day, but long term i think its going much higher. The recent rise in gold along with the rise in the US$ isnt a normal occurance. My guess is that other golbal currencies are weakinging and its a flight to safety. I can only imagine how high gold will go if/when the US$ falls.

Also, not sure if gold is stockpiled, but have read that oil has been stockpiled by investment banks such aas JP Morgan. I read that they own a half-dozen tankers and they are just hoarding it...would surprise me to read about a few other institution/govts doing the same...and the same with gold too. rbj

[Valuist]

I think the lesson is the futures markets are lightly traded, and often don't foreshadow what will happen in the following trading day.

[BlueShoe]

Another bad day so far, the Dow down almost 300. Getting closer to that 10,000 barrier, what happens if it breaks it? Oil down sharply, cheaper gas prices ahead for summer driving looking better. Time to do a little bargain hunting, or wait for further declines and try to time the bottom? Of course three hours from now we could be in positive territory, given the recent volitility, but not betting on it today.

[hazzardm]

Gold may have been down the other day, but long term i think its going much higher. The recent rise in gold along with the rise in the US$ isnt a normal occurance. My guess is that other golbal currencies are weakinging and its a flight to safety. I can only imagine how high gold will go if/when the US$ falls.

Also, not sure if gold is stockpiled, but have read that oil has been stockpiled by investment banks such aas JP Morgan. I read that they own a half-dozen tankers and they are just hoarding it...would surprise me to read about a few other institution/govts doing the same...and the same with gold too. rbj

FYI, alternative view of gold from Fortune. I have no comment.

Their reasoning is simple: investors are keeping prices high even as demand from non-investors is cratering.

http://money.cnn.com/2010/05/19/news/economy/gold.price.collapse.fortune/index.htm

[skate]

and what?

somebody is looking for what?

Gees, all the good boys AND GIRLS got out to vote, shouldn't things be more Positive Lately?:)


sometimes...you get what you des...ire. But skate, we didnt ass for this here mess...da, gees.

OH oh oh, i forgots, you'll "get em next time".

good luck

[Ocala Mike]

[QUOTE=BlueShoe]Another bad day so far, the Dow down almost 300. Getting closer to that 10,000 barrier, what happens if it breaks it? /QUOTE]


I gamble at the track, not on Wall Street. My guess is that smart investors will be buying stocks with both hands at that point. Remember, we were 4,000 points lower just 14 months ago!

Rally in gold is about the euro, right? See major resistance just above present levels for the metal, unless you want to gamble on a total meltdown in world economies.


Ocala Mike

[Robert Goren]

If I had any money I would looking to get in at about 9500. That is 20% correction point. I know a lot of people want to see this as the sky is falling and they may be right, the market was past due for a periodic correction too. JMO

[BlueShoe]

I would looking to get in at about 9500. That is 20% correction point.
We are not that far away. Dow closed at 9774 today, ending the worst quarter since Dec. of 2008. Many of us had expected a decline, so this is not that big a shock. A few of you are technicians, do the moving averages and charts foretell more woes? Many fundamentalists predict more problems, they say that our economy is still in dreadful shape, and that Europes problems are making things worse. When do we hit bottom, or have we already, with a new bull market just around the corner?

[PaceAdvantage]

I wrote the following on April 14:

Speaking of the market, anyone notice how horrible the volume has been lately on these up days? The few recent down days we've had the last number of weeks, the volume on those days has been higher than any of the up days during the same period of time.

Volume doesn't always tell the story, but I think it's pretty telling in this case, especially when contrasted with down days...

This recent leg-up that started in mid-February smells very weak to me...

Then the following on May 24:

The entire February to April runup was a joke...that is all being taken out right now as we type.

You do realize we have done NOTHING but go pretty much straight up from the March 2009 bottom?

From March 2009 to April 2010, the S&P (I'm using a futures chart here, so the exact numbers are probably off, but you'll get the idea) went from a low of 644 to a high of 1213. Essentially, it DOUBLED in the span of one year.

Without ANY serious retracement.

I predict the S&P will be testing the 930 level sometime in the near future. The next day or two will be very telling as to where we go near term...it is basically sitting at some weaker support levels at this very moment...and today's volume was very light (relatively speaking to the last week or two).

However, the S&P is down almost 15 points in after-hours trading as I type this...if the futures close below 1036 (they are at 1056 right now, and closed at 1071 earlier this afternoon), it is definitely going to 930 in a hurry....930 is definitely in the cards soon...however, yesterday's volume was a little on the weak side, leading me to believe there might be a little bounce up in the near future...but it won't get very far...both the 50 and 200 day moving average on the S&P are about to converge and create a very serious wall of resistance to anything above the 1100 mark...

Any bounce up should present a golden opportunity to short....I see no reason to change the near term forecast of 926-930 on the S&P (about another 800-1000 points on the DOW)....

[PaceAdvantage]

Wow...the Euro is UP almost two and a half cents versus the dollar...this is a huge move in one day...oil is down over $3 per barrel and the market is down another 125 points and falling further as I type....

Usually, oil and the Euro move in the same direction...economic and jobs data out today were horrible....

We may see 926-930 sooner than I thought on the S&P....things are not going well out there boys and girls...

[Bettowin]

Wow...the Euro is UP almost two and a half cents versus the dollar...this is a huge move in one day...oil is down over $3 per barrel and the market is down another 125 points and falling further as I type....

Usually, oil and the Euro move in the same direction...economic and jobs data out today were horrible....

We may see 926-930 sooner than I thought on the S&P....things are not going well out there boys and girls...


I am liking my long bonds:)

[Tape Reader]

I'll take a wild guess. 896.22 on the S&P cash.

[skate]

Meanwhile gold and silver up another 1% (about) each.

Gotta get over (gold) $2000 to just keep up, but hey, they might.:)

[BlueShoe]

Clunk. Just about everything down today. The S & P, Dow, oil and precious metals. Gold bugs took a hit with the shiny stuff down 40 bucks. Is there no place to invest? Cash is yielding nothing, it is like hiding it in your mattress, but zero return is better than losing. Options and shorting is only for the brave, and at this point my courage is lacking.

[Mike at A+]

Obama is deliberately tanking the financial markets. Ever notice that when he gives a speech all the indices drop like a rock? I've been tracking this for almost a year now and I wish I could pick horses as good as I can predict a market drop. He goes on TV, demonizes anyone who is making a profit, threatens to "regulate" his target du jour and presto. The market takes a crap. And I feel that it is deliberate and based in racism against whites. Glenn Beck said over a year ago that Obama was going to sneak reparations in through the back door. Well guess what, this is it.

[WinterTriangle]

Ever notice that when he gives a speech all the indices drop like a rock?

haven't kept a database on this stuff, so can't take sides, but that used to happen every time Bush spoke.

It may happen every time any president, regardless of party, speaks.

On october 10, 2008, before bush spoke the DOW was down 83 pts.
After he finished, it was down 300 by the eod.

Same thing used to happen with Paulson's conferences, and he wasn't a prez.

Didn't THE DOW drop from about 14,000 to 6,500 during Bush’s term? Crisis of confidence in the markets was a crisis of confidence in Bush.

Now we have the thing with Obama. Same stuff, different person.

Basically, our leaders suck, which is why I find partisan politics so entertaining

.... esp. when people think their side "has the answers."

Sorry, but haven't see that in my lifetime. Each one does a few good things, and bad stuff. I guess I just had no expectation that any one party, or person, was going to save the world in my brief 57 years here on planet earth.;)

Bushites were blaming clinton, obamaites will blame Bush. the next one will blame obama.

Wake me up when there's some new finger-pointing game in play that I need to pay attention to.

[Mike at A+]

My point was that he could positively influence the markets IF he were to announce tax incentivess for businesses that hire people. Hell, that may even positively influence the JOB market. The issue is that he DOESN'T WANT TO. He wants people to suffer and become more dependent on government. The sad part is that people your age who also find themselves unemployed are forced to cash in their investments just to survive as prices drop. Oh, and a Bush speech in 2008 doesn't carry the same weight as one in 2006 before the Dems took over Congress. 9/11 aside, 2000-2005 were damn good years for anyone with marketable job skills. Today you have experienced people with Masters degrees working for little more than minimum wage - IF they are even working. Bush wasn't great but he would know how to stimulate the job market if he had a Republican Congress.

[PaceAdvantage]

Nice little comeback today off the lows on some decent volume...look for the rebound I was talking about a few replies above to take place over the next few sessions...back to around the 1070 mark where it will meet huge resistance in the form of the 50 and 200 day moving averages...if the market does bounce a bit back to those averages, and subsequently shows weakness and an inability to close above those averages, that might be a no-brainer short in the making..

[Valuist]

[QUOTE=WinterTriangle]

Didn't THE DOW drop from about 14,000 to 6,500 during Bush’s term?OTE]

The Dow was at 10,582 when he took office in 2001. It was about 8,077 when he left office in Jan of 2009. Great? No, but it went from 10,582 to over 14,000 over several years and one didn't need to be too sharp to take money out of the market in early 2008 before the Dow got anywhere near 8000.

[Mike at A+]

Raw numbers can be very deceptive - especially when you leave out something as significant as 9/11.

[lamboguy]

I am liking my long bonds:)
you won't for to much longer. it has been a 27 year bull market though, so it ain't that easy to break at this poing. my guess is that it will head south in about 6 months.

big smash down in gold today, that is the way gold has been trading for the last 10 years. it takes out all the stops and then they run it up as far and fast as they can. there are bigtime stops around 1150 so it would not suprise me to see them go after them.