Dow Jones becomes a bear market

BBC ^ | 07/02/08

[TigerLikesRooster]

Dow Jones becomes a bear market

A bear market is commonly defined as one that is 20% below its peak

The Dow Jones Industrial Average closed more than 20% below its October 2007 peak on Wednesday, meaning it is officially a bear market.

The blue-chip index fell 166.8 points or 1.46% to 11,215.5, which is 21.0% below its 14,198.1 close on 11 October.

The biggest drag on the index was General Motors, which fell below $10 a share for the first time since September 1954.

The S&P 500 index closed just shy of 20% below its peak levels.

[TigerLikesRooster]

Ping!

[Flavius]

Buy Buy Buy...

right when all the clowns are freaking out you buy?

[Publius]

Fibonacci support at 11,500 has failed. The next retracement will take the Dow down to about 10,000. If that holds, buy. Otherwise, if that fails, the next retracement level will be 7500.

[B4Ranch]

This goes to show that the frantic denials by selected FReepers will not keep the market from dropping.

[madison10]

Okay, how about $1000 worth of GM stock? Anyone? :)

[CaspersGh0sts]

Well, maybe. GM is about to release the Cheverolet Volt in 2010. I have a feeling sales for this vehicle are going to be off the charts

The Chevrolet Volt is a battery-powered, four-passenger electric vehicle that uses a gas engine to create additional electricity to extend its range. The Volt draws from GM’s previous experience in starting the modern electric vehicle market when it launched the EV1 in 1996, according to GM Vice Chairman Robert A. Lutz.
...
“If you lived within 30 miles from work (60 miles round trip) and charged your vehicle every night when you came home or during the day at work, you would get 150 miles per gallon,” Lutz said. “More than half of all Americans live within 20 miles of where they work (40 miles round trip). In that case, you might never burn a drop of gas during the life of the car.”

http://media.gm.com/servlet/GatewayServlet?target=http://image.emerald.gm.com/gmnews/viewmonthlyreleasedetail.do?domain=74&docid=31656

[CaspersGh0sts]

Where I live, the only time I’d ever need to use gasoline again would be on a roadtrip.

That car would get me everywhere I usually go on electricity alone.

[sasportas]

Fibonacci support at 11,500 has failed.

What percentage level is 11,500?

[r_barton]

The electric grid can barely supply the air conditioners when we have a real hot summer. If half the homes plugged in a car each night could the grid support it?

[Gritty]

That car would get me everywhere I usually go on electricity alone.

Just wait until you see your electric bills!

[From The Deer Stand]

Speaking of electric cars, and the higher electric bill it takes to charge the batteries, what about the batteries? They don’t have a long life, are expensive to replace, and what do you do with the used ones, of which there will be thousands.....

[Petronski]

Everything is building toward the French model of nuclear electric generation, and thank God Almighty for it!

[spanalot]

foreign money will take advantage of the cheap dollar and get in before it gets below 10,000.

[steve86]

Fibonacci support at 11,500 has failed.

Of course, there are lots of fib levels depending where you start counting from. But it's looking dire. About time for a violent but futile "rally of hope".

[Biblebelter]

There are a lot a reasons why the market is down. I read and listen to a lot of financial news and I do not hear anyone talking much about the effect the election has and will have on the market. I do not think the market is looking forward to President Barry with a Democrat congress and I doubt if it has much more enthusiasm toward McCain and a Democrat congress. I can see the Dow breaking below 10k and when it 14k less than a year ago, that would be a heck of a downside move.

[ChicagahAl]

A quick search of http://www.chevrolet.com/electriccar/ doesn't give any projections for either the cost of recharging nor the cost of the vehicle. It also doesn't address the projected maintenance costs of the batteries, power train, etc. I realize that this is still a concept car, but they are hoping to produce it in about two years.

I think this car is a great idea, but I suspect that its costs are going to be much greater than what people are hoping for. Does anyone have a link to a third-party analysis of the projected costs of this vehicle?

Plus, the US power grid will melt down (literally) as a result of electric car owners plugging in every night, unless the infrastructure is upgraded to some multiple of its current capacity. I haven't read of any plans to do this.

[Vince Ferrer]

Okay, how about $1000 worth of GM stock? Anyone? :)

Pretty expensve toilet paper you've got there.

[TigerLikesRooster]

None of politicians would be able to get us out of economic trouble now. The difference would be which one can make it worse than it should have. The choice between the bad and the worse.

[irishjuggler]

I’m not necessarily buying, but it’s tempting. GM has around $40 in cash per share, and its business outside of North America is profitable. If they can figure out a way to stop bleeding money in the domestic business, the stock could easily double or triple from the current level.