CNN: Dow DOWN 1000 points

[Zander]

Smart money's buying gold, Zander.

Smart money has an asset allocation plan. If that plan calls for gold - they'll own it and periodically rebalance to their preset percentages. Otherwise it's not "smart" money at all.

Meh, not for me. Asset allocation got, what, 3%, 4% p.a. the past decade?

Sometimes its best to be heavily in stocks. Sometimes bonds. Sometimes cash. Sometimes gold.

But only if you know what you are doing.

When you have a crystal ball that works - give me a call. Until then I'll stick with my "mostly" passive strategy. I value preservation of capital more than growth at this time in my life and I don't take unneccesary risk.

 

[Toro]

I'd recommend a passive strategy to most people, with a twist.

 

[KissMy]

There is more to this downturn than the media is letting on. First the Greece fire got things going. Then P&G dismissed reports that their new Pampers chemical burns on children after the U.S. Consumer Product Safety Commission said it launched a probe into P&Gs new diapers after some parents complained that they appeared to be the cause of rashes and chemical burns on their children. NYSE: PG, MMM Tripped Circuit also yesterday Market Intellisearch identified the start of a new bearish trend for 3M Co. Bearish Trading Activity for 3M Co. (MMM)

This got the market plunging tripping stop loss triggers. Then the NYSE slowed trading & came up with the story of how a trading error occurred. We have never heard who this “fat-fingered” trader was that errored & what "major firm" was he trading for. This smells of the Plunge Protection Team stepping in to stem the bleeding. Who knows what the truth is. The government SEC is totally incompetent. For all we know governments around the world may be selling to stabilize their own economies.

In talking with my friends last evening about the market crash. I brought the subject of this P&G Pampers chemical burn & the rural nurse said she had seen 15 cases of this in the past week at her hospital. She said it is for real & P&G is lying.

 

[KissMy]

Market to open up 400 due to Europe bailout. Sell into the 3rd biggest opening rally on wall street. This sugar rush will end.

 

[KissMy]

Turns out there was no "Fat Fingered Trader", no "computer glitch", no "market manipulation". That was a legit market crash. The manipulation was done by government & their media partners to cover this up & blame it on some BS. So now we have moved into price fixing stocks & Rule 48.

Market traded around 9900 this morning before Germany passed the Europe bailout. We will likely rally for a while now on that Trillion dollars. After that crack fix wears off in a few months trouble will return with a vengeance.

 

[Zander]

Turns out there was no "Fat Fingered Trader", no "computer glitch", no "market manipulation". That was a legit market crash. The manipulation was done by government & their media partners to cover this up & blame it on some BS. So now we have moved into price fixing stocks & Rule 48.

Market traded around 9900 this morning before Germany passed the Europe bailout. We will likely rally for a while now on that Trillion dollars. After that crack fix wears off in a few months trouble will return with a vengeance.

Maybe a few months, maybe a few weeks, maybe a few days. Either way, I am prepared for the huge sell off that has been shaping up since August 09. This market is trending one direction..........down.

 

[KissMy]

TD Ameritrade would not allow customers to sell yesterday saying it was a computer problem. The BS just never stops. Charts are showing one shoulder & head of the dreaded head & shoulders pattern. If this bounce does not last then look out below because the double dip is on the way.

WOW the Plunge Protection Team really kicked the market up the last hour of trading to keep that DOW 10,000+ headline going over the weekend. Way to go government manipulators.

 

[Toro]

TD Ameritrade would not allow customers to sell yesterday saying it was a computer problem. The BS just never stops. Charts are showing one shoulder & head of the dreaded head & shoulders pattern. If this bounce does not last then look out below because the double dip is on the way.

That's nonsense. I've been a client of Ameritrade for years, and I was trading yesterday. I heard that the system went down but the idea that Ameritrade was complicit in some conspiracy is ridiculous.

 

[KissMy]

TD Ameritrade would not allow customers to sell yesterday saying it was a computer problem. The BS just never stops. Charts are showing one shoulder & head of the dreaded head & shoulders pattern. If this bounce does not last then look out below because the double dip is on the way.

That's nonsense. I've been a client of Ameritrade for years, and I was trading yesterday. I heard that the system went down but the idea that Ameritrade was complicit in some conspiracy is ridiculous.

Were you selling or buying yesterday? My uncle could not sell on Ameritrade yesterday.

 

[Toro]

TD Ameritrade would not allow customers to sell yesterday saying it was a computer problem. The BS just never stops. Charts are showing one shoulder & head of the dreaded head & shoulders pattern. If this bounce does not last then look out below because the double dip is on the way.

That's nonsense. I've been a client of Ameritrade for years, and I was trading yesterday. I heard that the system went down but the idea that Ameritrade was complicit in some conspiracy is ridiculous.

Were you selling or buying yesterday? My uncle could not sell on Ameritrade yesterday.

I was hedged out and I was covering my hedges. I think we're going to bounce then fall further, but I could be completely wrong.

In the flash crash, I tried to cover some of my inverse leveraged ETFs, that were soaring as the market collapsed, but I couldn't get filled.

 

[william the wie]

That's nonsense. I've been a client of Ameritrade for years, and I was trading yesterday. I heard that the system went down but the idea that Ameritrade was complicit in some conspiracy is ridiculous.

Were you selling or buying yesterday? My uncle could not sell on Ameritrade yesterday.

I was hedged out and I was covering my hedges. I think we're going to bounce then fall further, but I could be completely wrong.

In the flash crash, I tried to cover some of my inverse leveraged ETFs, that were soaring as the market collapsed, but I couldn't get filled.

Well I was able to lock in on my 120 XSP June straddles at 105 at zero additional possible loss. It cost me 7.5 for 2 contracts to get in at 120 and 10 for 3 contracts at 105 so I lose no more than my original 15 no matter what June closes at. However my ass is still flapping in the breeze for my Dec 120. I just hope we hit 103- soon.

 

[Toro]

Vol is back. We are extremely oversold, and I expect a bounce on Mutual Fund Monday, but I take the Flash Crash very seriously, and assume it portends something bad. If I'm wrong, and its not bad, no problem, but I ain't taking any chances.

 

[SFC Ollie]

I do not own any stock, I do not follow the market that close, I probably couldn't name 10 stocks in the Dow or S&P.

So one of you tell me how the market drops like this as soon as the Senate starts talking about regulating Wall St?

 

[Toro]

I do not own any stock, I do not follow the market that close, I probably couldn't name 10 stocks in the Dow or S&P.

So one of you tell me how the market drops like this as soon as the Senate starts talking about regulating Wall St?

Same reason why the stock market got crushed when Scott Brown was elected - happenstance.

The market is going down because of the turmoil in Europe. Financial regulation may be weighing on some financial stocks but it isn't a reason for the broad market's decline.

 

[william the wie]

I do not own any stock, I do not follow the market that close, I probably couldn't name 10 stocks in the Dow or S&P.

So one of you tell me how the market drops like this as soon as the Senate starts talking about regulating Wall St?

The US is not the only country pushing for financial reform. China, the UK, Germany and the EU as a whole have either enacted or have proposed financial reform. So while I agree with Toro it is quite sensible to be scared about how all these reforms will interact but I suspect that most of the smart money got out earlier in anticipation of the coming mess. All of these uncoordinated reforms are likely to cause huge SNAFUBARs as European banks try to operate here and our banks try to operate there.

One hint the DJIA = 1 oz of gold is a very dependable signal of a market bottom. If that happens buy an index fund(s) and ride it until late April. You may not make huge returns but unless both gold and the DJIA both tank you are extremely unlikely to lose money.

 

[Big Bad Bob]

The recent stock market drop was a GREAT buying opportunity.

I'd recommend 2 real good stocks that you would be wise to buy at this time.
Coach COH buy it below $40.00 It's a gift. It's going to see $55.00 in a few months or less.
Coach stock has been showing support around 44.50 and resistance in the 49.20 range. A great buy at this price

And to make a fast score buy AVB (Avalon Bay Communities) but this baby anywhere below $100.00... It's good for $140.00

 

[efresh]

Smart investors would have known why it is dropping like this and look for buy back opportunities....

 

[KissMy]

I just cant help but wonder about it being a cyber attack.

It is a shocker that Truthmatters may be onto something.

It is being widely reported today that the "FLASH CRASH" of May 6th, may have been Engineered Market Manipulation.

 

[saveliberty]

All the more reason to sit on cash.

 

[Paulie]

The recent stock market drop was a GREAT buying opportunity.

I'd recommend 2 real good stocks that you would be wise to buy at this time.
Coach COH buy it below $40.00 It's a gift. It's going to see $55.00 in a few months or less.
Coach stock has been showing support around 44.50 and resistance in the 49.20 range. A great buy at this price

And to make a fast score buy AVB (Avalon Bay Communities) but this baby anywhere below $100.00... It's good for $140.00

This is retarded.

At the time you wrote this, those support and resistance levels had already broken down and formed new lower ones.

Here's a great stock tip, guys...don't take stock tips from this dude.