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DOW Down 285

aldrethaldreth
edited August 2007 in The Economy
The economy is slowing and unemployment rose to the highest for this year. Cease and Desist order issued to American Home Mortgage. Bear Stearns ratings cut to "Negative". Countrywide Financial fell another 5%. Rates are getting higher... So much for that refi to save your home, I guess now we just charge it on our visa.

This is getting ugly.

Comments

  • S-CrowS-Crow
    It's moving from ugly to uglier.
  • TJ_98370TJ_98370
    It's like dominos, with the Bear Stearn hedge fund blow-up being the first peice to fall. You cannot say that all this has not been anticipated.

    CRASH-CON 2 Eleua?
  • rose-colored-coolaidrose-colored-coolaid
    S-Crow wrote:
    It's moving from ugly to uglier.

    That was close. I thought we might be approaching pug ugly status! :lol:
  • TJ_98370TJ_98370
    ..
    Good summary of current bubble related events on Ben Jones blog:

    One of the Biggest Bubbles We've Ever Had
    ..
    As usual, the comments are also worth reading IMO.
    ..
  • SunTzuSunTzu
    In a few days I'm sure Mr. Greenspan the maestro himself will tell the world that the current Fed should lower interest rates
  • snigletsniglet
    Aren't we about due for a relief rally? A lot of stocks are looking oversold in the short term.

    Anyone have any thoughts as to what might happen on Monday? Will things stay in a trading range?
  • SunTzuSunTzu
    Relief rally? This is only the beginning, my friend. Be ready for more ups and downs in the coming weeks.....
  • bilirubenbiliruben
    Look at the 3-month graph of the big indexes. We are still up over that time span. This has a lot further to go. I'm not planning to dip more than my pinkie toe into the market (shorts excepted) until we see another 10% washout. I would expect it before the end of the year.

    These things are really, really hard to predict, but I would be shocked to see the markets outperform my 5% MM over the next 6 months.
  • rose-colored-coolaidrose-colored-coolaid
    sniglet wrote:
    Aren't we about due for a relief rally? A lot of stocks are looking oversold in the short term.

    Anyone have any thoughts as to what might happen on Monday? Will things stay in a trading range?

    It feels that way because the market has been so funny the last year. As in, bad news hits, big drop, then everyone buys on the dip.

    I don't think we'll see a relief rally next week. To much negative news, and a sudden panic sell at the end of a Friday. Usually (in the summer especially), Fridays are quiet days. Loosing almost 300 points today, the way we did, is a very bad sign for next week.
  • TJ_98370TJ_98370
    Someone on another blog was touting SRS. He said he put most of what he has into it.

    Opinions?
  • LionelLionel
    SRS is an ETF that goes up when RE goes down. If you think that REITS will continue to get hammered it's a solid choice. If not, stay away. The nice thing about it is that you can short a number of companies without worrying about a buy-out sending the price of a single stock you've shorted skyrocketing at an inopportune time. You have to buy in increments of 100, which means it's over 11K to purchase at the moment. There are plenty of other reverse funds, like SRF, that tracks financials. Other than that, no one can give you advice over the web. It's your choice based on what you think will be happening in the market.
  • fasterfaster
    Damn! And I thought for sure this was going to be the month where MSFT broke out of the 20s! :?
  • perplexdperplexd
    I noticed that from July 19th's high tick around 14,121, the Dow has lost very nearly 1,000 points to today's close. So we're at 7% so far.

    How far do we go? Seems like we're not done with all the credit problems just barely peeking out from under the covers.
    [url=http://today.reuters.com/news/articleinvesting.aspx?type=etfNews&storyID=2007-08-03T184507Z_01_N03363842_RTRIDST_0_BEARSTEARNS-MARKETS-URGENT.XML]Bond turmoil worse than Internet bubble -Bear CFO[/url] wrote:
    NEW YORK, Aug 3 (Reuters) - Bond market turmoil sending investors fleeing from risk may be a worse predicament than the 1980s stock market fall and Internet bubble burst, Bear Stearns Chief Financial Officer Sam Molinaro said on Friday.

    "These times are pretty significant in the fixed income market," Molinaro said on a conference call with analysts. "It's as been as bad as I've seen it in 22 years. The fixed income market environment we've seen in the last eight weeks has been pretty extreme."

    "So, yes, we would make that comparison" to market events that also include the debt crisis of the late 1990s, he said.

    Yeah, we got a ways to go yet. People will be fire-selling everything to deleverage themselves. Hopefully my next house will be part of the assets unloaded before the end of it all :)
  • EleuaEleua
    CrashCon 3 was set on February 23

    CrashCon 2 was set on July 17

    http://clearcutbainbridge.blogspot.com
  • brettrobrettro
    Jim Cramer:

    http://www.liveleak.com/view?i=de8_1186355765

    WOW.
  • TJ_98370TJ_98370
    ..
    brettro -

    I get the feeling that Mr. Cramer is not a real big fan of Mr. Bernanke. :?
    ..
  • rose-colored-coolaidrose-colored-coolaid
    brettro wrote:
    Jim Cramer:

    http://www.liveleak.com/view?i=de8_1186355765

    WOW.

    Here's some more. Click on the Jim Cramer bit in the window just under the video to see it.
  • SunTzuSunTzu
    the chart pattern looks bad...... more correction to come..... my prediction: 12800 in 2 weeks
  • SunTzuSunTzu
    SunTzu wrote:
    the chart pattern looks bad...... more correction to come..... my prediction: 12800 in 2 weeks

    Wow! it happened sooner than I expected.......
  • rose-colored-coolaidrose-colored-coolaid
    The next support is around 12,200. So expect the market to more or less tank to that point, since we already plunged past 13,000.
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