The market finally snaps: Stocks take a beating on Apple, Russia and a collapse in bonds.

MSN Money ^ | 09/26/2014 | Anthony Mirhaydari

[SeekAndFind]

For weeks, I've known something was off.

High-yield bonds have been coming under intense selling pressure, no doubt related to the approaching end of the Federal Reserve's QE3 bond purchase stimulus next month.

The U.S. Dollar has been absolutely soaring, pinching euro-dollar carry trades and pummeling commodities including crude oil and precious metals. And internally, within the stock market, breadth has been narrowing dangerously as buyers find fewer and fewer stocks attractive at these levels.

Well, on Thursday, something finally snapped.

As a result, the Standard & Poor's 500 Index ($INX 0.00%) plunged below its 50-day moving average for the first time since July while the Dow Jones Industrial Average ($INDU -1.54%) lost more than 260 points as it fell back below the 17,000 level.

This is all coming as a shock to many people. For one, stocks had just set new record highs last week. And two, there just hasn't been much selling over the last two years, with the S&P 500 not even suffering the indignity of touching its 200-day moving average since 2012.

[SeekAndFind]

[SeekAndFind]

But as someone else postd in the site...

A correction is defined as a 10% drop in the major indices. Today’s activity is a mere bump in the road, not a drop off the cliff. Check back in 60 days.

[BradtotheBone]

Big freaking deal. For those of us that invest for the long term, corrections don’t mean squat.

[YankeeReb]

OK I'm going to put on my tinfoil hat here.

Just going by what I've seen of gas prices in the last few weeks, they've been dropping pretty steadily. I had to ask myself, Why? It's fall, the refiners are switching over to heating oil for winter, so in past years this was always the time of a spike in gas, or at least it held steady. From the article

High-yield bonds have been coming under intense selling pressure, no doubt related to the approaching end of the Federal Reserve's QE3 bond purchase stimulus next month.

So that got me to wondering, could it have something to do with the election in Nov? Couple that with Hussein cutting his top Lt (Holder) loose and if I were the suspicious type I'd say probably Yes.

Then again, what kind of an administration would this be if it did things like this ONLY for the sake of an election? </s>

[sphinx]

There’s a tricky timing question here. If the stock market crashes in the next six months, will the democrats and the MSM blame it on Bush, or on the next Republican president?

[SeekAndFind]

RE: So that got me to wondering, could it have something to do with the election in Nov? Couple that with Hussein cutting his top Lt (Holder) loose and if I were the suspicious type I’d say probably Yes.

So, what are stock markets expecting this coming November?

A Democrat retention of the senate?

[YankeeReb]

LOL. I wish I knew, but the GOP should be a lock and they’re not. I would love to see them unify around a clear message of closed borders, no amnesty , and repeal 0bamacare for starters. To me that should be a no brainer for them.

[refermech]

You know, as laughable as that seems, I’m sure they will try.

[Maine Mariner]

I am not sure what answer will be given.

I know they will never blame themselves.

[EQAndyBuzz]

Gas prices are an easy win for congresscritters. “Look what I did. I brought gas prices down.” No one remembers that the day Obama and the rat congress took power, gas was a buck eighty a gallon.

Th middle east is burning up and prices are coming down? We should put the final nail in the middle east gas bazaar and fast track Keystone and the construction of new refineries. If anything, it will stop several wars going on.

[Mouton]

One of the unknown lies about the averages is they are not constant. Both the DJI and the SandP amongst others change over time. Comparing the Dow average today to say the dow averages in 1980 excludes the fact some of the stocks from 1980 are gone from the averages and in fact a few are no longer around or merged i.e. Kodak, Woolworth, Inco, Union Carbide, International Harvester, and Sears. One of the two then is one company now: Texaco and Chevron (then known as Stardard Oil of Cal). So, one needs examine the entire breathe of the market IMO. Today, very similar to 1987 for instance, the averages have been going up masking a general downward trend of the broader market. This is not a good signal over the near term but if nothing else, inflation alone will drive the prices higher in the distant future no matter what else if one is in the stocks that survive!

[Fresh Wind]

...will the democrats and the MSM blame it on Bush, or on the next Republican president?

Well, if the next president is Jeb Bush, that would make sense.

[wbill]

For those of us that invest for the long term, corrections don’t mean squat

Bingo. I don't mind them, they a) make for good investement opportunities and b) shake out some of the dumb money.

Dunno about you, but I get nervous when things irrationally keep going up.

[q_an_a]

Yea and when the Dow drops price of wholesale GAS goes up 5 to 10 cents... damn trader crooks

[Revel]

Blah blah...It is on its way back up. Something is really going to have to break before the fake stock market crashes for real.

[Milton Miteybad]

The incumbents always get a break on gas prices at every election season...which falls well after the end of the summer driving season and the higher prices inherent during that time. People are driving less during the fall, and gasoline demand falls, creating downward pressure on gas prices. Happens every year like clockwork, and during election years, it appears that somebody dialed gas prices back to benefit incumbents, although that's not what is really happening.

If the general elections were held in May, almost every incumbent would be at risk, since that's when gas prices start moving up due to the start of driving season. But we hold the general election in November because that's what the Constitution provides, and the price of gasoline wasn't a consideration back in the 18th century when the Constitution was ratified.

[Jean2]

Amen to that.