STOCKS TANK IN FINAL MINUTES OF THE DAY: Here's What You Need To Know

TBI ^ | 10-7-2011 | Sam Ro

[blam]

Click here to see the daily DJIA chart.

[blam]

CONSUMER CREDIT PLUNGES BY $9.5 BILLION

[the invisib1e hand]

More signs that the U.S. economy is not as bad as everyone thought.

OK, it's time we put this lie in its place: it doesn't matter how much "better" the economy is doing (and I certainly take exception to the claim) -- what matters is how the pie is being divided: to union and government employees and pensioners.

Don't tell the rest of us that "the economy isn't as bad" as we know it is.

[nascarnation]

I’d say it’s continuing to bump along the bottom.
With small up and down deviations in the data from month to month.

A year ago I worried that a “recovery” might possibly give Baraq something to run on economically. It looks now like that has minimal chance of happening. Now economists are considering it “optimistic” if bumping along continues rather than another significant leg downward.

[olezip]

If you take the 60k expected jobs and add to that the 45k Verizon workers who returned to work after their strike you get 105k. Subtracting the unexpected 45k jobs from the 103k you get 58k jobs, less than the 60k expected.

[ixtl]

Stock tanks are what I water my cattle in, though they are pretty low right now due to the drought. (Yes, I live in Texas).

[Freedom56v2]

First, the scoreboard:

Dow: -18
S&P 500: -10
NASDAQ: -27

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With all due respect, I don’t think -18 is a “Tank”

[SAJ]

The whole rally this week was generally BS, materialising after Dexia in Belgium made a (mostly) honest report that they were going into the sewer, and the banking boffins in Wonderland announced that they were working on a plan to have a plan that planned to plan a way out for Dexia. There is, of course, no such plan, just a lot of spit and jawbone.

Effectively, the rally in US shares was a short squeeze in front of option expiration. And it just ran out of steam (and new buyers) with 20 minutes to go in today's session.

Do please note that Shapiro, of the IMF no less, said that without a credible plan, it could be SHTF in Wonderland within 3 weeks' time. This is all the more remarkable a comment because, if a meltdown does really occur, the IMF are fapp out of business (not exactly a bad thing, given their atrocious track record over the past 40 years).

Have fun next week, traders. I'm delta short the Fishwrapper and intend to write OOM SP Oct 14 calls next week. About a 1.4% return on capital on what is a VERY low-risk trade. Be alert for an opportunity to buy VIX lightly, probably the Dec or Jan calls. This is a "just in case" trade; just in case the SHTF in the next 5-6 weeks in Wonderland, there is effectively no upper limit for VIX in the short term. In 2008, for example, VIX hit 82 during the crash; spot VIX is right now 36. Think about it. Good trading to all!

[blam]

"A year ago I worried that a “recovery” might possibly give Baraq something to run on economically. It looks now like that has minimal chance of happening. Now economists are considering it “optimistic” if bumping along continues rather than another significant leg downward."

That's about the way I see it too. However, I think a lot of the 'survivors' are slowly going broke.

[mamelukesabre]

“survivors”?

what are you referring to?

[blam]

"Do please note that Shapiro, of the IMF no less, said that without a credible plan, it could be SHTF in Wonderland within 3 weeks' time. This is all the more remarkable a comment because, if a meltdown does really occur, the IMF are fapp out of business (not exactly a bad thing, given their atrocious track record over the past 40 years)."

Posted to FR yesterday:

"In The Absence Of A Credible Plan We Will Have A Global Financial Meltdown In Two To Three Weeks"

[SAJ]

Sorry, blam, I had not seen it on FR.

In any event, such a quote from any honcho at IMF is indeed remarkable, and might be worth repeating for emphasis.

[blam]

"what are you referring to?"

Mainly the low income people...the ones that still have some sort of job and the ones who just lost a job. They, and the middle-class are becoming poorer, is my point.

Surviving but slowly sinking financially.

[blam]

"Sorry, blam, I had not seen it on FR."

No problem. I like the habit at FR of linking revelant threads. They're more informative and complete.

[UB355]

If you need to know you would have been advised yesterday.

[familyop]

"But, big downgrades in Europe bring us back to reality...Italy and Spain."

Well, their pre-default acquisitions of Argentina's politics, resources and manufacturing aside, they are important tourist traps. Oh...and Italy's status as main trading partner of Iran.

George Washington:

“Why, by interweaving our destiny with that of any part of Europe, entangle our peace and prosperity in the toils of European ambition, rivalship, interest, humor or caprice?”

“Nothing is more essential, than that permanent, inveterate antipathies against particular Nations, and passionate attachments for others, should be excluded...The Nation, which indulges towards another an habitual hatred, or an habitual fondness, is in some degree a slave. It is a slave to its animosity or to its affection, either of which is sufficient to lead it astray from its duty and its interest.”

[ken21]

dire again.

[blam]

"dire again.

Dire Straits

[ken21]

i always liked that song,

and the mama!

[steve86]

With all due respect, I don’t think -18 is a “Tank”

I think ^DJI fell 120 or so in 20 minutes (approximate numbers). It sure looked like a tank (and UNEXPECTED).