by Jack
Hope none of you suffered whiplash trying to follow the market today. What a wild performance! It was absolutely record breaking in terms of the swings, down a thousand, recovered to negative 120, down again, closing down over 588 pts.
There’s always somebody with an explanation why this happened, but I’m not sure anyone knows for certain. Computerized trading triggered some selling, then some buying, then some selling, they warnings from key indices caused some damage. So many reasons for whipsaw, take your pick, there’s some truth in all of it. But, there’s no reason to panic – I’ll let you know when its time to panic and we’re not there yet.
Remember I told you to keep an eye on the S&P, if closes below 2000 for the month we could be in for a lot more downside. It’s 1893 on the close, lets hope we see some consolidation tomorrow. The after hours trading indicator was slightly positive, always good sign.
The Dow’s was off 3.6% and this was the 8th worse one-day point loss in history and the worse daily point decline since Aug 8, 2011.
The consensus says if you are down (and your probably are), just hold tight. The market will come back. You might not see it all come back for a year or two, but the longer you hang in there, the better your chances are for full recovery. Individual stock losses ranged from 3-6% on average, but some were in double digits like XIV, it dropped 21%.
Some stocks of interest:
QQQ -3.3%, FB -4.88, BOX -7.53%, CSCO -4.84%, CVX -4.80%, XOM -4.76%, AAPL -2.43%, VSTM -5.27%, OIL -6.6%, CAT -2.89, MEMP +2%.
We should be more concerned that we can not know what game they are playing in all
markets, China too. It is not a wild ride it is a rigged game with corrupt tactics.
Poor Dewey. China is a mystery to him.
I have no holdings in China but their economic troubles evidently affects the Dow averages. I have long known that the short term market is driven by fear and greed. The stock I own is long term and not really much affected by this down swing and six months from now it won’t make a damn bit of difference.
Were I a day trader, I would be happy. Buy now.
As Alfred E. Newman use to say, What me worry?
“The New York Stock Exchange invoked the little-used Rule 48 to pre-empt panic trading at the stock market open for the third day in a row on Wednesday. In a historic move, the exchange used the rule before Monday’s open following a dramatic drop in pre-market open futures, including the Dow Jones Industrial Average futures falling more than 700 points.
The goal of Rule 48 is to ensure orderly trading amid financial market turbulence. It’s only used in the event that extremely high market volatility is likely to have a floor-wide impact on the ability of designated market makers (DMMs) to disseminate price indications before the bell.
Unlike a circuit breaker that stops stock trading, Rule 48 speeds up the opening by suspending the requirement that stock prices be announced at the market open. Those prices have to be approved by stock market floor managers before trading actually begins. Without that approval, stock trading can begin sooner. “