ehsan

In eight and a half hours of low volume trading the FTSE 100 index has given up 323 points, some 5.5%, to return itself to a level not seen since June 2006.
The drop represents the biggest percentage fall since the terrorist attacks hit New York on 11 September 2001 and in fact represents a bigger points loss than was seen on that day when the market dropped 287 points.
The falls were driven by growing fears of a US recession which have proved unassailable in recent days despite proposals for massive tax-rebates from President George Bush.



http://nma.citywire.co.uk/News/NewsA...9%26ea%3d21976

Dow Jones which was at 14198 in October is now just above 12000.

worse to come?

StirCrasy

So should we sell and cut losses or hold on hoping for atleast a plus day to sell on?

H E L P!

X2

i am mostly in mutial funds so I am hoping my fund managers are making teh right decisions

ehsan

^ Watch out for your next valuation statement.

X2

yeah i dont think I will even open it.

saieen

mubarak ho.

X2

no msla, made enough on stock portfolios, now I will just put them in interest bearing bond guaranteed gains, none of this profit and loss stuff

MehnazQ

They were saying yesterday on CNBC that the current market is doing even worse than it did on September 11th. My mutual funds ... ... oh man, I don't even know if I can make up what I lost.

SindSagar

X2

MQ

fund managers are better prepared to handle this than the hacks on this site so while all is not hunky dory they are working to do the bestthey can, much of the unloading of stocks is by mutual funds who are going into safer areas for teh short term.

its not limited to US either, other major exchanges have been hit, and will be hit even more in comign days

kaka_in_usa

Indian market lost 6.6 lakh carore in one day , my mutual fund in USA lost lots of money too..
i hope market recovers cuz i am losing money... big time..

X2

kakay where are u getting the fund performance info?

Rocking vibes

Recession on the corner...I have been waiting for the market to drop like this, I have already shorted many stocks and am making loads of money.......All the stocks in Dow jones and back in India are under valued....best time to get in.....I see a big oppurtunity here....the .75 percent rate drop did not do any wonders....next few days will be interesting to watch !

ehsan

With the cut in interest rates today don't get sucked into the dead cat bounce. Fundamentals will dictate the long term trend and I think it will be down for quite sometime. In the short term expect a lot of volatility

Rocking vibes

^Right......but these rules don't apply on a day trader like me !!

chintu_bhopali

yeah dude i have started buying some stocks. Not looking to sell them for next 2 years.Sort of Long term investment !!

ehsan

I ma a day trader as well and in such volatile markets you can get caught very quickly especially if a fast market is declared, losses can be galore. Never leave a position open overnight in such markets.

chintu_bhopali

^^ ehsan bhai could you explain it in detail? I didnt get it!!

Dont you think its the right time to buy for long term investment when the prices are down .

ehsan

Chintu the above explanation was for a day trader not a long term investor. For a long term investor the falls represent a good time to buy but wait for the volatility to die down. My view and I could be wrong, is that the markets will fall further and this downtrend could last for a while. No point in buying today when the markets could fall further. While it is always difficult to predict the bottom of the market you can wait to see the trend before investing. One pointer could be how the mutual funds behave. If the money is parked by these funds waiting to be reinvested int he market when stability returns than the downtrend could be short lived, if they are switching their money into bonds than the downtrend in the stock market could continue for a while. Watch the trend int eh bond market over the next few days and weeks.

This market is a dream for day traders and option traders.

MehnazQ

How are we supposed to get our money back? I'm really upset. I never even made any money in my mutual funds ... it's all my own paisay going down ... down ... down ... ... and I have TD Managed funds but I don't see what they are managing.

ehsan

^ I hope you didnt take your hubby's advice.

ehsan

Looks like the markets were not impressed with the 75 basis point cut by the federal reserve bank yesterday. A desperate and panic measure never soothes the markets, Fed should have known better. They have succeeded in temporarily halting what could have been a massacre on the American markets yesterday but the medium term prospects don't look good.

Rocking vibes

Volatile market is my kind of market......Just a little market research can do wonders......Little tip.........Although the market is hugely under valued and recession is setting in, Try analysing GM stocks. It is one of the largest corporations in the world and I bought 1200 of them at 22.27 two days ago.....According to me, the regular pricing for this stock even on a bad market is atleast 26. Even if it dropped any further it would be hardly 2-5%......and today that stock is priced at 24.2+ after two days of bearish market. I have been watching some more stocks which are valued on the dirt level....the only way for it is to go up....regardless of the market trend..........WARNING: Day Trading is a kind of gambling the only difference is that you can increase your odds by doing a little market research.

ehsan

Wall Street Resumes Selloff


Wall Street was once again seeing red Wednesday as a warning from Apple, weakness in European markets and continuing concerns about a recession kept sellers in charge. The Dow Jones Industrial Average was losing 108 points, or 0.9%, to 11,863. The blue chip average fell by as many as 264 points at the open, weighed by losses of 3.3% or more in components Hewlett-Packard, Merck and AT&T.
Elsewhere, the S&P 500 was down 13.5 points, or 1%, at 1297, and the Nasdaq Composite was shedding 34 points, or 1.5%, to 2258.
If the major indices were to close lower, it would be the sixth straight day of losses.
"Technically, investors want to see a real test before being convinced," said Marc Pado, U.S. market strategist with Cantor Fitzgerald. "There are still deep-seeded concerns over forward-looking earnings prospects."
During the previous trading session, the broad averages plummeted at the open on recession fears and deep losses overseas despite an emergency 75-basis-point rate cut by the Federal Reserve, but the U.S. market recovered much of the initial decline.
The Dow dropped as many as 464 points early before ending down 128.11 points, or 1.06%, to 11,971.19. It was the first time the Dow closed below the 12,000 level since November 2006. The S&P 500 fell 14.69 points, or 1.11%, to 1310.50. The Nasdaq fared the worst, sliding 47.75 points, or 2.04%, to 2292.27.
Following the closing bell, Apple offered fiscal second-quarter guidance that was below analysts' expectations. Shares were tumbling 12.3% to $136.43 despite a banner first quarter for the iPod, Mac and iPhone maker.
European stocks were hit hard as the European Central Bank declined to follow the Fed's lead and cut interest rates. Germany's Xetra Dax was falling 2.8%, while the Paris CAC 40 and London's FTSE 100 were lower by 3%.
There was some positive news from Asia, as Hong Kong's Hang Seng saw its biggest point gain ever, rising 10.7% after two days of heavy selling. Japan's Nikkei 225 added 2%, and other indices in Australia, India and Indonesia surged overnight.
Texas Instruments was another bright spot after posting a fourth-quarter profit late Tuesday that rose 13% from a year ago. Results beat the Thomson First Call average estimate for earnings. Shares of TI were rising 55 cents, or 1.9%, to $29.53.
Financial stocks also helped pare the overall losses. Bear Stearns added 7.5%, Bank of America, Wells Fargo and Countrywide Financial were up 3.4% or more.
Meanwhile, traders were contending with several other earnings reports. Motorola tumbled 15.9% to $10.36 after posting a fourth-quarter profit that fell sharply from a year ago. The handset maker also offered first-quarter guidance that was short of expectations.
On the bright side, Pfizer , ConocoPhillips, Coach and United Technologies posted results that exceeded estimates.
"The market sentiment is overly bearish and until that runs its course, we're in for rocky days ahead," said Peter Cardillo, chief market economist with Avalon Partners. "The focus is now on earnings and, more specifically, weak guidance."
After the closing bell, eBay , Capital One Financial and Qualcomm are set to post earnings.
Away from equities, Bloomberg reported that Merrill Lynch halved its forecast for U.S. growth and is now expecting that gross domestic product will rise 0.8% for the year.
U.S. Treasury prices were surging. The 10-year note was up 17/32 in price, cutting the yield to 3.38%, the lowest in more than five years. The 30-year bond was rising 13/32 in price, yielding 4.17%.
Commodities were mixed. Crude oil dipped 95 cents to $88.26 a barrel, while gold futures were up $4 to $894.30 an ounce.

http://www.thestreet.com/_htmlmdb/ma.../10399920.html

Some1

Police secure Ahmedabad Lake after Bombay Stock Market Crash

What is the relation between a Lake and the Stock Market, you ask !....read on :
http://in.rediff.com/money/2008/jan/22mkt2.htm

ehsan

^ I shouldn't laugh but

Some1

Indian stock investors, I think, are playing to the classic "PUMP and DUMP" strategy of market manipulators.

The strategy is best explained by the following story circulating on the web :

Once upon a time in a village, a man appeared and announced to the villagers that he would buy monkeys for $10. The villagers seeing that there were many monkeys around, went out to the forest and started catching them.

The man bought thousands at $10 and as supply started to diminish, the villagers stopped their effort. He further announced that he would now buy at $20. This renewed the efforts of the villagers and they started catching monkeys again. Soon the supply diminished even further and people started going back to their farms.The offer rate increased to $25 and the supply of monkeys became so little that it was an effort to even see a monkey let alone catch it.

The man now announced that he would buy monkeys at $50! However, since he had to go to the city on some business, his assistant would now buy on behalf of him.In the absence of the man, the assistant told the villagers...Look at all these monkeys in the big cage that the man has collected.... I will sell them to you at $35 and when the man returns from the city, you can sell it to him for $50. The villagers squeezed up with all their savings to buy the monkeys. Then they never saw the man nor his assistant, only monkeys everywhere!!

Rocking vibes

Alright guys....as per my earlier post ..GM has finally touched to its actual value which $ 26. I think I am going to bail out...already made $3000 + in two days that too in a bearish market where DJ dropped atleast 250 points. I love this market, I hope this volatility last for few more days...Happy safe trading !