When the dust finally settles, Thursday May 6th will be seen as a day of booms and busts. If you were short, and were able to get out when we tanked hard, you made a tidy sum of money, and if you were long, you either got smacked or you rode out the yo-yo and pared the losses. More than likely, you fell somewhere in between.
I got the phone calls up till midnight last night about what happened. I actually left my computer about 20 minutes before the big sell off to do some volunteering, so I was not here to see what happened but never the less I heard a ton of stories. So, here is a brief list of what I have heard up till lunch time today. I have no confirmation as to these stories being real or just rumors. Some sound easily believable, others, not. Make your own judgement.
Remember, these are all RUMORS and many of them conflict:
The Euro will be gone by July 4th
The Euro will be gone by next week
The Euro will be gone by the end of the year
The Euro will survive this and not go anywhere
Greece is a drop in the bucket, there is much more to come
This will end with Greece. After they figure out how to fix them, they will use that formula on other countries in trouble
The USA is next to fall
The USA will never go through that
An "off the floor" futures trader at the CBOT made $4,000,000 and change during that black hole move
Hedge funds blew up "left and right"
An equities trader lost 78% of his portfolio, capitulating 30 seconds before the lows
A big commodity fund is on the ropes and ready to shut down
It will be hard for the retail investor to ever trust the market again
This was the buying opportunity of the year
We crashed
It's Goldman's fault!
Al I know is it appears that volatility is back for now, but remember, it's a double edged sword. Make sure your trading plan is tuned up and you follow your risk management matrix or else the market will make short work of you, no pun intended.
Friday, May 7, 2010
Jim Rogers views
The suspected erroneous trades that exacerbated the Wall Street's fall on Thursday should be investigated and solutions must be found if the New York Stock Exchange is to maintain its reputation, investor Jim Rogers told CNBC late Thursday.
The Dow ended Thursday's session down 3.2 percent, at 10,520.32, after being down as much as 998.50 points earlier, the index's biggest intraday drop on record.
According to regulatory officials, "a huge, anomalous, unexplained surge in selling" happened at about 2:45 p.m. New York time, setting off trading based on computer algorithms, thus amplifying the fall.
"Somebody should hang this New York Stock Exchange," Rogers said. "They claim to be the center of the world's capitalism, of the world's financial markets, you would think that in 2010 they could sort out simple things like electronics."
The New York Stock Exchange is investigating the cause of the possible erroneous trades.
But any tech problems alone are not to blame for the whole of the collapse as a decline was overdue, he added.
"It's time for a consolidation, there's always a reason for consolidation when it comes, the market went up for 13 months in a row, now we're going to, you know, correct for a while," Rogers told CNBC. "In my view the correction should have started sooner."
Rogers said he was long the dollar and the yen but "unfortunately" he was also long the euro, which economists predicted will collapse.
"You never have enough shorts when things collapse," he said. "I think people should be looking for shorts or defensive positions because we're going to have problems for a while, at least in my view."
Giving money to Greece will not solve its problems, it will only postpone them, as liquidity injections in other parts of the world have done, Rogers warned.
"As I've been saying to you all before, 2010 and 2011 are going to be years of currency turmoil not just in Europe but all over the world and Greece is bankrupt," he said.
"We can paper it over for a while, just as we papered over some of the problems in the US and the UK but the problems are going to come back," said Rogers.
Correction: A previous version of this story said a "glitch" at the New York Stock Exchange caused an accelerated selloff. This version makes clear the cause for the sudden surge in selling is unknown, but that erroneous trades are suspected.
The Dow ended Thursday's session down 3.2 percent, at 10,520.32, after being down as much as 998.50 points earlier, the index's biggest intraday drop on record.
According to regulatory officials, "a huge, anomalous, unexplained surge in selling" happened at about 2:45 p.m. New York time, setting off trading based on computer algorithms, thus amplifying the fall.
"Somebody should hang this New York Stock Exchange," Rogers said. "They claim to be the center of the world's capitalism, of the world's financial markets, you would think that in 2010 they could sort out simple things like electronics."
The New York Stock Exchange is investigating the cause of the possible erroneous trades.
But any tech problems alone are not to blame for the whole of the collapse as a decline was overdue, he added.
"It's time for a consolidation, there's always a reason for consolidation when it comes, the market went up for 13 months in a row, now we're going to, you know, correct for a while," Rogers told CNBC. "In my view the correction should have started sooner."
Rogers said he was long the dollar and the yen but "unfortunately" he was also long the euro, which economists predicted will collapse.
"You never have enough shorts when things collapse," he said. "I think people should be looking for shorts or defensive positions because we're going to have problems for a while, at least in my view."
Giving money to Greece will not solve its problems, it will only postpone them, as liquidity injections in other parts of the world have done, Rogers warned.
"As I've been saying to you all before, 2010 and 2011 are going to be years of currency turmoil not just in Europe but all over the world and Greece is bankrupt," he said.
"We can paper it over for a while, just as we papered over some of the problems in the US and the UK but the problems are going to come back," said Rogers.
Correction: A previous version of this story said a "glitch" at the New York Stock Exchange caused an accelerated selloff. This version makes clear the cause for the sudden surge in selling is unknown, but that erroneous trades are suspected.
Thursday, May 6, 2010
1150
1150 is going to be defended because it was basically January's highs. I do see lower prices ahead, only a trade back to the highs and above 1230 will negate my views here.
1155 BINGO
Hitting pre market here - We still got 30 minutes before the open but we will see what happens when we open-
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