Posted on 05/20/2010 10:08:05 AM PDT by EBH
The euro was weak again early Thursday and, predictably, global stocks followed suit. Japan's Nikkei fell 1.5% overnight, major European bourses were down 1.85% to 3% in recent trading, while U.S. proxies were down 2.5% to 3%.
In recent trading, the Dow was below its 200-day moving average of 10,250, while the S&P 500, Dow Transports, Nasdaq and Russell 2000 were each more than 10% below recent highs, or in official "correction" territory.
Traders watch such technical indicators closely, and concerns about moving averages and the like can become self-fulfilling and generate more selling.
At the same time, the selloff has brought out a rash of "crash" predictions in recent days, including from legendary newsletter writer Richard Russell. In addition, Fortune's Sean Tully compares the current environment to 1987 (pre-crash) and says "investors can, at best, expect extremely low returns in the years ahead."
The fact sentiment has seemingly swung so quickly from "pause to refresh" three weeks ago to "end of the world" today is a positive sign from a contrarian perspective. To wit, veteran market watcher Don Hays titled his report yesterday: "Nouriel [Roubini] is Sounding Good Again, and That is Bullish"
Sentiment is hugely important in the short-term and clearly it has turned sharply negative. Longer-term, the market tends to focus on fundamentals but here too, the naysayers are finding their voice, citing:
* -- The possible disintegration of the euro and general chaos in Europe, where policymakers can't seem to get their act together. * -- Potential for a second-half slowdown in the global economy and renewed weakness in U.S. housing. * -- Deflationary pressures in the developed world, and inflationary pressures in emerging markets. * -- Rioting in Athens, Bangkok and other global capitals. * -- Rising tensions between North and South Korea.
(Excerpt) Read more at finance.yahoo.com ...
Get bamy on a bass guitar and they could start a string band.
We Didn’t Start The Fire
Artist(Band):Billy Joel
Harry Truman, Doris Day, Red China, Johnnie Ray
South Pacific, Walter Winchell, Joe DiMaggio
Joe McCarthy, Richard Nixon, Studebaker, television
North Korea, South Korea, Marilyn Monroe
Rosenbergs, H-Bomb, Sugar Ray, Panmunjom
Brando, “The King and I”, and “The Catcher in the Rye”
Eisenhower, vaccine, England’s got a new queen
Marciano, Liberace, Santayana goodbye
CHORUS
We didn’t start the fire
It was always burning
Since the world’s been turning
We didn’t start the fire
No we didn’t light it
But we tried to fight it
Josef Stalin, Malenkov, Nasser and Prokofiev
Rockefeller, Campanella, Communist Bloc
Roy Cohn, Juan Peron, Toscanini, Dacron
Dien Bien Phu Falls, Rock Around the Clock
Einstein, James Dean, Brooklyn’s got a winning team
Davy Crockett, Peter Pan, Elvis Presley, Disneyland
Bardot, Budapest, Alabama, Khrushchev
Princess Grace, Peyton Place, Trouble in the Suez
We didn’t start the fire
It was always burning
Since the world’s been turning
We didn’t start the fire
No we didn’t light it
But we tried to fight it
Little Rock, Pasternak, Mickey Mantle, Kerouac
Sputnik, Zhou Enlai, Bridge On The River Kwai
Lebanon, Charles de Gaulle, California Baseball,
Starkweather homicide, Children of Thalidomide
Buddy Holly, Ben Hur, Space Monkey, Mafia
Hula Hoops, Castro, Edsel is a no-go
U2, Syngman Rhee, payola and Kennedy
Chubby Checker, Psycho, Belgians in the Congo
We didn’t start the fire
It was always burning
Since the world’s been turning
We didn’t start the fire
No we didn’t light it
But we tried to fight it
Hemingway, Eichmann, Stranger in a Strange Land,
Dylan, Berlin, Bay of Pigs invasion
Lawrence of Arabia, British Beatlemania
Ole Miss, John Glenn, Liston beats Patterson
Pope Paul, Malcolm X, British Politician sex
J.F.K. blown away, what else do I have to say
We didn’t start the fire
It was always burning
Since the world’s been turning
We didn’t start the fire
No we didn’t light it
But we tried to fight it
Birth control, Ho Chi Minh, Richard Nixon back again
Moonshot, Woodstock, Watergate, punk rock
Begin, Reagan, Palestine, Terror on the airline
Ayatollah’s in Iran, Russians in Afghanistan
Wheel of Fortune, Sally Ride, heavy metal suicide
Foreign debts, homeless Vets, AIDS, Crack, Bernie Goetz
Hypodermics on the shores, China’s under martial law
Rock and Roller cola wars, I can’t take it anymore
We didn’t start the fire
It was always burning since the world’s been turning.
We didn’t start the fire
But when we are gone
It will still burn on, and on, and on, and on...
We didn’t start the fire
It was always burning
Since the world’s been turning
We didn’t start the fire
No we didn’t light it
But we tried to fight it
We didn’t start the fire
It was always burning
Since the world’s been turning
We didn’t start the fire
No we didn’t light it
But we tried to fight it
We didn’t start the fire
It was always burning
Since the world’s been turning
We didn’t start the fire...
What? No unexpectedly?
•GROSS: FINANCIAL MARKETS EXHIBITING “MINI RELAPSE” OF FLIGHT TO LIQUIDITY
•GROSS: HEDGE FUNDS AND OTHER LEVERAGED POSITIONS NOW LIQUIDATING TO PRESERVE CAPITAL
Actually earlier today the news said that the downturn was partially due to the “unexpected” rise in first time unemployment cases, they went up to 471,000 +. So, yes, unexpectedly was definitely in there.
Looks like this just may be it....
READY....we can all jump together.
“Investor (Stockholm: INVE-B.ST - news) uncertainty is leading to a flight to quality and safe havens,” said Peter Dixon, economist at Commerzbank (Xetra: 803200 - news) .
“Dumping stocks seems sensible with so much uncertainty on the macro environment, and all fundamental ways of looking at value are out of the window.”
This is not “it”. This is a precursor.
That song needs a whole new verse to deal with Obama and Islam, the two biggest blights in our world.
This will fuel a GOP takover of Congress in November.
Please, can we stop being so gleeful about it.
It’s coming and it’s nothing to be happy about. All the “this is it” and “so it begins” posts every day are getting tiresome.
I’m personally praying it DOESN’T happen and preparing for the worst.
Could be all the census temp jobs drying up. Incidentally I went to the census.gov web site to get the numbers and got a “this connection untrusted” warning from Firefox. Go figure.
Always makes me giggle. Meaning of course that the market stays in crap as long as possible.
Used to be that the typical strategy would be to buy-and-hold quality. Now it's a rarity assumed only in panic.
The PPT trotted out Bahny Fwank to psychobabble for a few minutes before they started buying in. The miraculous rise’off the lows’ will now begin.
Sorry if you read it as glee.
I posted it shaking my head negatively in disgust.
The handwriting has been on the wall for over a year now and they just kept repeating the same mistake over and over and over.
It is either global insanity or will intent.
The world has gone insane...............
Ah, whew, thought the MSM was slipping.
1:00 pm : The three major indices have breached their 200-day moving averages as market participants continue to dump stocks.
There hasn’t been any headline to account for this session’s slide. Rather, market participants have become increasingly risk averse in recent weeks, so their selling has only begotten more selling.
A near complete lack of support for stocks has left 98% of the names in the S&P 500 to trade with losses.
http://finance.yahoo.com/marketupdate/overview?u
This is a great argument in favor of terraforming and colonization of Mars and other places...
If Earth gets bad enough then we LEAVE THE WHOLE DAMN PLANET!
Said only partly in jest...
Fat fingers again, nothing to see here...
The German Mark is the currency in Germany (DE, DEU). The German Mark is also known as Deutschmark, and Deutsche Mark. The exchange rate for the German Mark was last updated on May 7, 2010 from The International Monetary Fund. The DEM conversion factor has 6 significant digits.
http://coinmill.com/DEM_EUR.html#DEM=2
hmmmmmmm......the Euro is not long for this world.
Crash and burn, Mav.
The journey to Dow 4000-5000 has begun.
Uh, no. I welcome a collapse that is blamed squarely on the dems. I want to see 0bamunists suffer--long and hard.
Nice find. That’s amazing.
Zerohedge reporting that both TD Ameritrade and RBS have gone dark.
Its what the Germans got in writing from the EU prior to consenting to the Greek Deal..
So does this mean Germany now has two official currencies? EU an DM?
Thanks. I’m worried for my kids.
Td Ameritrade still comes up with account data
You can pray all you want, but socialism/communism never has worked, and never will work.
I worried for the young ones too.
One is a Marine, his wife, and two toddlers. My nephew and great niece and nephew.
None of this was what we ever want for the next generation.
Proverbs 13:22
Huh!
They left off the Iceland volcano and how it has the potential to disrupt worldwide food production...not to mention flying.
I sold stocks for the first time today, just coincidentally because I needed some money for a down payment on a house.
Bought 20 yrs ago and never sold til today. . .
I got out after 15 years on Nov. 5th, 2008.
When I got up that morning to see who was elected to run the country....
2:00 pm : The stock market’s bounce off of its session low has lost momentum. In turn, the Dow and S&P 500 continue to trade with losses well past 2%, while the Nasdaq is still down more than 3%.
Losses are even sharper among small-cap stocks. As such, the Russell 2000 is down 4.2%. Within the Small-Cap Index, fewer than 3% of the components have managed to put together a gain. New York & Co. (NWY 3.98, -1.32) is atop the list of declining issues; the company posted a quarterly loss that was in-line with Wall Street’s consensus, but the stock was subsequently hit by an analyst downgrade. Shares of NWY have lost roughly one quarter of their market cap in this session alone. DJ30 -278.11 NASDAQ -76.28 SP500 -32.73 NASDAQ Adv/Vol/Dec 180/2.05 bln/2533 NYSE Adv/Vol/Dec 126/1.14 bln/2997
http://finance.yahoo.com/marketupdate/overview?u
Ping to 40
You kidding? A decent wordsmith could redo the entire thing. There's SO much material:
Ronald Reagan / Robert Bork
Vince Foster / Marcy Park
Oklahoma bombs-away, cause
Limbaugh has too much to say
That's just off the top of my head, anyone care to add?
If the Fed and the Regime weren’t actively interfering with the NYSE, with their “circuit breakers” and such, the Dow would be in the 4000’s now. Therefore, the Dow is meaningless.
Exactly.
Deutsche Mark is guaranteed to be accepted by Deutsche Bundesbank as valid currency at a fixed rate of exchange to Euro (approx. DM2 to €1).
However, no new DMs are issued or printed by Bundesbank, even as replacement for unusable coins or paper currency.
Tomorrow is options and futures expiry day, so some of the volatility can be attributed to that (using the Euro / PIIGS panic), as well as some hedge funds deleveraging and margin calls.
Same ole, same ole...
All
http://www.freerepublic.com/focus/f-news/2515868/posts
Above link posted by blam Tuesday here on FR, which is entitled,
Dow Theorist: Sell Everything Liquid, You Won’t Recognize America By The End Of The Year
The Business Insider ^ | 5-18-2010 | Joe Weisenthal
Spain is broke. On May 7th credit to Spanish public and private institutions simply dried up, being rejected bonds up to an 18% of interest rate. The media is trying to hide that.
I am literally sick to my stomach just looking at that graph.
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