View Full Version : The DOW

06-02-2012, 07:17 AM
Selling has continued from may into June and just had the worst market day in 6 months.
Projections are the DOW will drop even lower at the Monday morning bell and will be in correction.
As of Friday it entered correction territory and is close to moving below is 200 day moving range.
This may usher a call for more sell orders.
The S&P 500 has slid 10% an is now in correction.

It should be an exciting day Monday.


<span style='font-size: 23pt'>U.S. stocks fall 2%-plus, adding to week’s gloom</span>
<span style='font-size: 17pt'>Dow gives up gains for year; Gold surges, dollar sinks</span>

SAN FRANCISCO (MarketWatch) — U.S. stocks started the new month with more than 2% losses Friday, turning the Dow Industrials negative for the year and pushing the S&P 500 into correction territory, after a U.S. jobs report showed slim growth in May.

The report, following downbeat data from China and Europe, raised serious concerns about the health of the global economy and sent investors running into Treasurys and gold.
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The Dow Jones Industrial Average DJIA -2.22% fell 274.88 points, or 2.2%, to 12,118.57, its worst day since Nov. 9. The index is down 2.7% for the week and 0.8% for the year.

The S&P 500 Index SPX -2.46% dropped 32.29 points, or 2.5%, to 1,278.04, undercutting what some analysts see as support at 1,280, and also its worst day in more than six months.

The index is 10% off a intraday, 52-week high and 9.9% off its 52-week closing high, both reached on April 2.

A 10% pullback, which is often termed a technical correction, “doesn’t mean we’re in a bear market. But it does mean you have to recalibrate for a world where the U.S. is going to barely grow 2%, Europe is a chronic source of stress, and emerging markets, at least for now, are not contributing much,” said Russ Koesterich, global chief investment strategist at BlackRock iShares.

The Nasdaq Composite Index COMP -2.82% declined 79.86 points, or 2.8%, to 2,747.48, also in a correction.

The S&P 500 culled its year-to-date gains to 1.6%, after losing 3% this week, while the Nasdaq is 5.5% higher for the year so far, despite losing 3.2% for the week, largely due to strong gains in the first quarter.
Safety play

Gold futures rallied as investors sought a safe haven and the dollar fell on speculation that the weak data could trigger more quantitative easing from the Federal Reserve.
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The August gold contract GCQ2 +4.05% surged $57.90, or 3.7%, to $1,622.10 an ounce, its best day since August. Read more in Metals Stocks.

Yields on 10-year Treasury notes 10_YEAR +0.14% hit a fresh low of 1.44% and recently traded down 10 basis points at 1.46%. Read more on bonds.

“People are fearing the modest growth we were expecting for the U.S. may fade,” said Scott Wren, senior equity strategist at Wells Fargo Advisors in St. Louis.

“In addition to the European sovereign-debt scenario, which I think won’t go away anytime soon, and fears China is slowing down, over the last couple months we’ve had some deterioration in U.S. data,” he added.

06-02-2012, 08:54 AM
Corrections (as in a 10% drop) help the longer term growth of a stock or stock index. Anything going consistently up in price has to come down unless there is an extended bubble going on or other unusual factors.

It takes a 20% decline to signal a bear market, and this isn't that.

The effect of a 10% drop is to put those assets on a sale, relatively cheaper, and at a lower price, they are more in demand. But technical factors may be overwhelmed by pessimism which can lead to an oversold condition, especially if critical support levels are breached on the down side.

As the larger stock market players (the too big to fail guys) all typically use the same models, they begin to pump in large buying by computer trading models as the 200 day moving average is approached as a lower bound. That's been the case for some years now. The Dow, and the S&P 500, are not moved by retail demand, as there is very little retail participation in these markets anymore. More and more retail customers see the fundamental risks and rigging of these markets, although few see the game the whales are playing by trading these markets within these ranges. But they've been doing it like clockwork, again and again.

06-02-2012, 03:19 PM
For the most part its a rigged game.
That in no way means you cant make money in it.
Your day traders can do quite well as can the FOREX guys.

However even the whales can be beached if the market suddenly plunges 3,4 or 5000 points after 2:30PM. Everybody has to ride it out. As far as I know that is no shutting it down that late in the day.

06-02-2012, 07:19 PM
The DOW iz predicted to rize and fall everyday.

06-02-2012, 07:24 PM
<div class="ubbcode-block"><div class="ubbcode-header">Originally Posted By: cushioncrawler</div><div class="ubbcode-body">The DOW iz predicted to rize and fall everyday.
http://img.photobucket.com/albums/v732/tianaman/D90/DSC_0092.jpg </div></div>

Just like the sun.

Nice junket.

06-07-2012, 06:36 AM
The DOW +287 yesterday.

06-07-2012, 08:14 AM
Sev, kudos to you for mentioning yesterday's strongly surging DJIA.

Because you'd pointed out the large fall in it, and it's only fair to do that.

Evidently most or all of the world markets were also strongly up, having their best gains in a while as well.

Will the market go up, or down? Yes.

Now if only I'd see some admission from the gleeful ones who said $5 to $8 dollar per gallon was coming this summer that the trend has been down for some time now, and the traditional driving time for vacations is here and the traditional summer price spike time is here, but no price spike.

06-07-2012, 09:02 AM
<div class="ubbcode-block"><div class="ubbcode-header">Quote:</div><div class="ubbcode-body">Now if only I'd see some admission from the gleeful ones who said $5 to $8 dollar per gallon was coming this summer that the trend has been down for some time now,</div></div>Who was gleeful for $5-$8 $/gal gas? I am glad it isn't but I don't credit Obama for one bit of that since you won't credit him for helping drive it up.


06-07-2012, 09:31 AM
I'd have to check back on the threads, but there certainly was a general salivation on the right that their projected huge gasoline prices would tank the economy and ruin O's re-election chances since he was wholly to blame, they said at the time.

But he hasn't changed a single policy to my knowledge, and yet we've seen gas coming down, because the world price of oil is down (just as gas was up because the world price of oil was up).

It is pitiful to see people arguing that whatever we do here has any, let alone a determining, effect on world oil prices, compared to maybe a half dozen actual causes. Seriously lame brain process there.

So no, there's no credit due now, just as there was no blame due before.