Some1

^ Yes , today was a roller-coaster day indeed.

Anyways, here is another story doing the rounds of the internet about how the Stock Markets work :

It was autumn, and the Red Indians on the remote reservation asked their New Chief if the winter was going to be cold or mild. Since he was a Red Indian chief in a modern society, he couldn’t tell what the weather was going to be. Nevertheless, to be on the safe side, he replied to his tribe that the winter was indeed going to be cold and that the members of the village should collect wood to be prepared.

But also being a practical leader, after several days he got an idea. He went to the phone booth, called the Weather Bureau and asked, “Is the coming winter going to be cold?”

“It looks like this winter is going to be quite cold indeed,” the meteorologist responded. So the chief went back to his people and told them to collect even more wood. A week later, he called the weather bureau again. “Is it going to be a very cold winter?” “Yes,” the man replied, “it’s definitely going to be a very cold winter.”

The chief again went back to his people and ordered them to collect every scrap of wood they could find.
Two weeks later, he called the weather bureau again. “Are you absolutely sure that the winter is going to be very cold?” “Absolutely,” the man replied. “It’s going to be one of the coldest winters ever.” “How can you be so sure?” the chief asked. The weatherman replied, “The Red Indians are collecting wood like crazy.”

This is how stock markets work!

X2

hahahahaah too good and on the mark

ashtray

Well yes it may be 600 points move but after crashing to 300 points in the morning it recoverd to almost flat by lunch and then dropped to 270s again, only to end the day 300 points up. Riding a tsunami is a piece of cake compared to a day like today.

Good call on GM Rocking Vibes, when the GM global numbers came out yesterday, I thought about your post and how a brother is making money.

I used to day trade but had to pull all my money out of the markets to buy ISE membership. So right now I have nothing invested except my 401k. Since my company matches it by 8%, I am not losing anything technically and surely the markets will recover some from where they were a few days back. I am sure of this. I will sit tight for a few months, three to six, and then increase my contribution to take an advantage of the fire sale. Lets see how it goes.

Moderators: I flagged an unprovoked personal attack on this forum, uska kya hua?

ehsan

Abhi uss ko warning deta hoon.

shriek11

The ironic thing is that china and india [high rate growing economies] were thought to be insulated but I guess it is true, "We live in small world".

Rocking vibes

As predicted....I bailed out on 26.3 which I assumed GM's current market value and today even after the markets uptrend GM stock have fallen down to 25.2.........Apart from that, I still think this is a super bearish market with DOW swinging 600 points in a couple of hours.....Feels like the big players are manipulating the market....and the reason I see for this manipulation specially yesterdays last hour swings is if DOW had closed 300 points down yesterday....that would have carried over to Japan...Taiwan...China....India and eventually would bite the DOW today creating a butterfly effect around the world. That last hour upsurge avoided another round of panic sell-offs...I am pretty sure the US govt is going to try to avoid the signs of recession by any which way being an election year...but don't know how it can avoid it....All the numbers look gloomy and no matter how much the DOW gains in the next 5-10 days it will eventually come down. So Long term investors stay away from the market if you are not already in it.

Rocking vibes

The insulation is as bad as thin sheet of paper......India's and China's booming economy is 80% based on US economy. India leading the service sector and China the manufacturing sector....if US consumers stop spending on services and goods, India and China will lose respectively.

TofiBaba

You guys should give us some tips, so we could make some gas money too

Rocking vibes

^ You would be getting a lot of gas money from the govt this year if you and yourwife jointly make less than $150,000 a year. You may get $1200 plus $300 per child back from the Govt this year. That shd atleast buy 6-8 months of gas for your gas guzzler !
I have a feeling that the mkts are going to do some drama at the end of the day today and shd close on the positive side.

TofiBaba

^ no money for me

shriek11

Bachchon ko toffee khilao or tax return pe claim karlo!

ehsan

Markets stabilised today and made up for some lost ground.

X2

India is more dependent on corporate spending than consumer spending though.

shriek11

I think he probably meant the software outsourcing.....

X2

yeah..and who is outsourcing software, consumers or corporations.

China has more varied services and products, if ppl are nto buyign products made in china, or products which use chinese components that is an immediate inventory and supply chain issue. sourcing decreases due to lean supply chains and the impact is fairly quick.

Indian call centers and software houses are a little different because by the time decrease in consumer spending starts hittign corporations and they start looking to cut capacity for service or spend on development projects it takes time.

divine-light

atleast zinosnist who rule US ...wanted to give some "lesson" to Bush on no attacking Iran...

shriek11

What? that doesn't make any sense...

If zionist screws over the US like that then how will it get the aid it needs every year?
Hain jeeeee? ??

ehsan

ehsan

Rumours that the panic cut of 75 basis point was partly due to the rogue trade by Societe generale trader.

ehsan

Dow jones closed down 143 points. Watch out next week, the bear market is starting and it could be a very rough ride in the coming months.

divine-light

ehsan bhai....Alfered Hithcock ..from your country...has written...Synagogue of Satan..just read that...then you will get it..wht i am saying...

Rocking vibes

Alright...My next call is Google.....I am buying them at 550-552 levels......Its current evaluation shd be atleast 582-590....I am going to wait for the markets uptrend though maybe the next interest cut later this week...Happy trading..and I again recesson is round the corner if not already in.

TofiBaba

U think its going to go down that much? Its at 565 or so right now.

Rocking vibes

I have set my buy limit for 552, and I was expecting the market to fall this morning and it was priced at 555....but evidently the market is doing its bearish ups and downs. Currently priced at 558 still a good buy but I would rather wait it to fall for 552. Any which ways I am not to keen to spend my money on that pricey shares, My usual price range is $20-$100 shares.......Another call for quick money is MCD shares...they are currently priced at 51.......according to me its current value shd be atleast 56-58, and will shoot up if we have the next interest rate cut........I normally gamble on big stocks rather than penny or noname stocks because the if the market does a nose dive, I have more chances of recovering my money. All the best !

ehsan

Fed cut rates by another 50 points. The markets rose by over 100 points after the announcement but closed the day 37 points down. As I said earlier these panic measures are not going to work. It only ends up increasing anxiety in the market. 125 points cur in less than a fortnight is unprecedented. Watch out.

X2

when the market manipulators are done having all fools sell their stocks for ridiculous prices u will see the market go up.

There is no reason some of the stocks have gone down so much..nothing showing ppl will be buying less prescription medicine or less milk in the short term.

ehsan

Stock Can't Hold Gains


Blue chips and tech stocks in New York went on a wild ride Wednesday after the Federal Reserve cut rates for the second time in two weeks, rising sharply before pulling back late and closing lower. The Dow Jones Industrial Average went from down 74 points before the Fed decision to up more than 201 until sellers came in and ended the rally. At the close, the Dow was down 37.47 points, or 0.3%, to 12,442.83.
The S&P 500 and the Nasdaq Composite were similarly erratic, and their initial post-Fed gains were wiped out by the time trading wrapped up. The S&P fell 6.49 points, or 0.48%, to 1355.81, and the Nasdaq lost 9.06 points, or 0.38%, to 2349.
Contributing to the downturn was news that Fitch Ratings downgraded bond insurer FGIC, taking its key triple-A insurer financial strength rating down to double-A. FGIC isn't publicly traded, but competitors Ambac -- downgraded by Fitch earlier this month -- and MBIA plunged 16% and 12.6%, respectively, derailing the financial names.
After initially spiking on the Fed 50-basis-point rate cut, the NYSE Financial Sector Index pulled back and was lower by 1.1%. The Nasdaq Financial 100 Index also turned negative, falling 0.6%.
Several financial stocks that popped on the Fed rate cut announcement, including Citigroup , JPMorgan Chase and Lehman Brothers , ended the session in the red.
"There was some profit-taking on concerns of bond insurer downgrades, which put pressure on financials," said Robert Pavlik, chief investment officer with Oaktree Asset Management. "It's not surprising news. I don't think these monoline insurers will go out of business, but they're going to get pinched if they do get downgraded from their triple-A ratings."
The decline in financials nearly turned market breadth to the negative side. On the New York Stock Exchange 4.34 billion shares changed hands, as advancers matched decliners. Volume on the Nasdaq reached 2.52 billion shares, with winners narrowly beating losers by an 8-to-7 margin.
Word of the ratings action erased what briefly had been a sizable move upward for the market. As had been widely expected, the Federal Open Market Committee, the Fed's policymaking arm, decided to lower the fed funds target rate by 50 basis points to 3%, the lowest level since 2005. The discount rate was also cut by 50 basis points to 3.50%.
In the accompanying statement, the Fed said that "financial markets remain under considerable stress, and credit has tightened further for some businesses and households." While inflation should moderate in the coming quarters, "it will be necessary to continue to monitor inflation developments carefully," the statement warned. Downside risks to the economy remain, the Fed said.
The central bank has now lowered rates by 125 basis points over the past week, including an unscheduled rate decision to cut the fed funds rate by 75 basis points on Jan. 22. The Fed has now reduced interest rates by 225 basis points, or 2.25%, since its Sept. 18 meeting, in a bid to avoid a recession.
"We had a good rally between the last rate cut and this one, so investors are taking money off the table," said Paul Nolte, director of investments with Hinsdale Associates. "With the Fed cutting rates by as much as they have in a small time frame, investors are wondering if they're somehow missing something that the Fed hasn't."
U.S. Treasury prices tumbled following the Fed's move, pushing yields higher. The 10-year note was losing 4/32 in price, yielding 3.70%. The 30-year bond was shedding 23/32 in price to yield 4.40%.
Economic data were also in focus following the Commerce Department's advance read on fourth-quarter gross domestic product. The first of three readings on quarterly GDP showed a sharp decline to 0.6% from the third quarter's 4.9% and was half of what economists anticipated. Using the data, GDP grew 2.2% last year, the slowest annual growth since 2002.
Providing something of an offset and adding to the mixed data on the economy was the ADP payrolls report, which showed that employment in the private sector jumped by 130,000 in January, much greater than expected. The data come ahead of the government's own nonfarm payrolls report, which is expected to show a gain of 65,000 jobs when it is released later this week.
"ADP has proved itself horribly misleading several times over the past year but the fact remains that it is the best single advance indicator of payrolls," said Shepherdson. "Accordingly, we are inclined to move up our estimate for the official headline number on Friday to 100,000 from 50,000."
Investors were also shuffling through the latest earnings releases. Yahoo! was a notable decliner, sliding 8.5%. After the last close, the Internet search giant posted a fourth-quarter profit that dropped 23% from a year ago.
Yahoo! also offered full-year revenue guidance that disappointed shareholders, and the company also announced it will lay off as many as 1,000 workers as a cost-cutting measure. The stock was down $1.76 to close at $19.05.
Ahead of the open, Swiss bank UBS said it expects a record quarterly loss of $11.5 billion in the fourth quarter due to exposure from U.S. subprime mortgages totaling $14 billion. UBS lost 70 cents, or 1.6%, to $42.35.
Several components of the Dow were out with reports before the opening bell. Merck swung to a fourth-quarter loss due to charges stemming from litigation settlements over its Vioxx painkiller. Merck shed $1.54, or 3.2%, to $46.47.
Meanwhile, Boeing beat analysts' earnings target for the fourth quarter. Although the company offered 200