Although Mr. Greenspan is no longer officially the Fed chairman, it appears as though the markets and the masses, still quiver with anxiety whenever he mouths off.
Thanks to Mr. Greenspan and his poignant remarks, the market immediately shat on itself today, undoubtedly apprehensive about the future of the economy now and by the year's end.
So will someone tell me this, I know this guy has an unparalleled repository and applied knowledge of historical economic data and market analysis right? So much so that he has to virtually issue publicly indecipherable market opinion and analysis not to induce a widespread panic on a larger scale; (as experienced to a small degree today,) but can he at least consult with Bernanke before parting the Red Sea?
Fuck.
I think what he did was irresponsible. He is aware of the influence he has, and he is NOT the Fed chairman anymore.
there was a confluence of things...china, the boj, the carry trade coming off...
not to mention the plunge in durable goods orders (-7.8 pct)
Jimbo, I forget this stuff... but what are the trigger levels for the exchange to halt trading?
i don't follow equities that closely but i think the first trigger is at 250 and then there are further ones.
You know, I was just reading an article on Bloomberg today that said how low inventroies will keep fueling the economy; the demand for housing is slowly picking up, and consumer confidence is at its highest; I was thinking how ideal everything is to observe sustained growth for at least a couple more years and then all this happens. So sad
Is tomorrow morning a buying opportunity?
Goldman Sachs-Down 18 Apple -Down 5
Among numerous others... The momentum effect we all witnessed today is truly scary! Literally, it was a domino effect.
Have the fundamentals changed that much in the last 24 hours?
No, the momentum you mentioned will most likely carry through into tomorrow. I'm guessing people are going to want to protect the gains they have and will therefore sell. If I were you, I would hold off a few days and just monitor the market and try to get a feel of where its going. Consider buying if the markets rally into the close.
Perfect opportunity for tactical trades... also hedge using stop limit orders and short sales... no?
Apple may have a huge lawsuit over copyright laws for their ipod mp3 platform coming up in the future... I am staying away
Also, tomorrow's going to be ugly as well. There are still a lot of orders, almost all sell-orders, that haven't been completed yet. So that's going to weigh very heavily on the market, definitely at the open and presumably throughout the day. What kind of tactical trades are you talking about aadpepsi?
Ugly is relative, right?
Tomorrow may be the perfect day for general portfolio repositioning. Anything you hold short-term is a tactical trade, no? There may be several attractive opportunities tomorrow to take positions in equities which may have dropped 20%+ but otherwise have strong fundamentals.
Also, several issues may yet have further "correction" and staking a short sell on them wouldn't be a bad idea.
Finally, PM's always look to reduce cost basis on portfolios and tomorrow is a good a time as any...
Just my ramblings though... what do I really know?!?
Damn. I knew I should have sold my Chinese portfolio when Shanghai was near 3000...Valuations were way out of whack.
Still bullish on the U.S. market though. Liquidity is at historical highs. Yield gap (equity versus government bonds) is a couple of standard deviations below historical average. And PE of S&P is only 16. Once investors realize that emerging markets are overvalued, they'll retreat to the domestic market. Looking for 14000 in the year 2007.
watch what is happening in asia:
http://finance.yahoo.com/intlindices?e=asia
Nikkei down almost 1,000 points
ready to make those tactical trades?
aadpepsi, Yea, I agree with what you are saying. If a company I liked before today was down around 20%, then I would take a larger position. Same with shorting any weakness or further corrections. Although, I don't know how much money PMs will have on the side to be able to go in and take advantage of the lows as a chance to average down, at least not in a way that will substantially affect the overall market. I say that because of the extended rally we've had and the fact (or my perception) that institutional buying has had a hand in keeping the rally afloat. But to quote you aadpepsi...what do I really know?!?
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