Markets tumbling down

[30ashopper]

NEW YORK (MarketWatch) -- U.S. stocks plunged to their lowest levels in nearly 12 years as risk aversion and the weight of a global recession sparked a broad-based decline led by industrial heavyweights such as General Electric and Alcoa.

After a bank-led 485-point slide last week sent the Dow to new bear market lows, a more broad selloff Monday pushed the index even lower Monday. Setting off the declines was a drop of 48 cents, or 7.6%, to 5.81, for Alcoa, and 53 cents, or 5.7%, to 8.85, for General Electric.

For GE, traders continue to view the industrial conglomerate as basically a financial firm, with a Deutsche Bank analyst saying there's a growing risk that GE will have to cut its dividend to support its GE Capital unit. For banks, and all of the companies that rely on the credit markets to sustain growth, a continued fear about what still remains on corporate balance sheets reigns.
"Where there has been smoke so far, there has eventually been fire every time," said David Klaskin, chief investment officer for Oak Ridge Investments in Chicago.

Overall, the Dow closed down 250.89 points, or 3.41%, to 7114.78, marking its lowest closing point since May 7, 1997. In 10 sessions, the Dow has lost more than 14% and is down 19% for the year.

US Stocks Close Lower On Broad Losses; DJIA Down 251 - MarketWatch

Interesting day in the markets. We've lost over 2000 points on the dow in less than two months with the November lows reset as of Friday. The S&P lost 200 points in the same period. The markets have sold off on every announcement, every speech, and every bill passed. The banks are back on the edge of the abyss with no concrete plans yet on how to deal with it. Any good will we hoped to get out of a new administration simply didn't materialize. The markets have lost all confidence. It is getting u g l y out there...

 

[Lynnie]

US Stocks Close Lower On Broad Losses; DJIA Down 251 - MarketWatch

Interesting day in the markets. We've lost over 2000 points on the dow in less than two months with the November lows reset as of Friday. The S&P lost 200 points in the same period. The markets have sold off on every announcement, every speech, and every bill passed. The banks are back on the edge of the abyss with no concrete plans yet on how to deal with it. Any good will we hoped to get out of a new administration simply didn't materialize. The markets have lost all confidence. It is getting u g l y out there...

Yeah, I know. I keep giving this administration the benefit of the doubt in that something good has to happen in our financial markets, but it isn't. Who are his advisors?

 

[Miss Kitty]

I take back the time Mr. Kitty said the Merrill Lynch guy said the markers where there for a drop to the 5,000 range and I rolled my eyes. :shock:

 

[Lynnie]

I take back the time Mr. Kitty said the Merrill Lynch guy said the markers where there for a drop to the 5,000 range and I rolled my eyes. :shock:

I know Kitty - I have chosen to look the other way in some regard just thinking that people predicting 5,000 range were just being negative....nothing against Mr. Kitty, mind you.

But, I am nervous for this whole nation. What little I have left, I went in cash early last year and then again mid-year! Thank God!!

I am one of those hit pretty hard and last year was horrible, but emotionally and spiritually, it was by far my best year! I am emerging into what should be a time I can slow down a bit and enjoy what I love (travel and other things, too) - but, am facing grueling hard work and long hours! I'm pretty excited about it , yet still scratching my head on how the hell did I get here! Oh, and I have a partner not paying me~~ Enough about that - Tomorrow is Another Day!

 

[30ashopper]

I take back the time Mr. Kitty said the Merrill Lynch guy said the markers where there for a drop to the 5,000 range and I rolled my eyes. :shock:

We're 52% down now, a 70% loss would be around 460 on the S&P and 4250 on the DOW.

Of course, on the flip side.. the lower it goes, the higher it has to rise in a recovery.

 

[30ashopper]

I know Kitty - I have chosen to look the other way in some regard just thinking that people predicting 5,000 range were just being negative....nothing against Mr. Kitty, mind you.

But, I am nervous for this whole nation. What little I have left, I went in cash early last year and then again mid-year! Thank God!!

I am one of those hit pretty hard and last year was horrible, but emotionally and spiritually, it was by far my best year! I am emerging into what should be a time I can slow down a bit and enjoy what I love (travel and other things, too) - but, am facing grueling hard work and long hours! I'm pretty excited about it , yet still scratching my head on how the hell did I get here! Oh, and I have a partner not paying me~~ Enough about that - Tomorrow is Another Day!

You should be in great shape to take advantage of a recovery lynnie!

 

[traderx]

I don't remember who it was, but one of the market experts predicted 600 on the SP500. That is another 20% down from here.

What is interesting about the Dow is that it is sitting on horizontal support which has turned back the market several times over the past decade or so. That represents a mass psychology reversal and the Dow will probably turn back from here. I would not bet any money on it however. If the Dow does not hold support here, trend support has already been broken and this baby could have a nasty fall. The implications for the housing market could be severe.

 

[Miss Kitty]

We're 52% down now, a 70% loss would be around 460 on the S&P and 4250 on the DOW.

Of course, on the flip side.. the lower it goes, the higher it has to rise in a recovery.

recovery sounds so nice!

I think I will call Mr. K, who is in NYC, and tell him to mosey on over to Wall Street and get what is left of our stocks.

Will the government step in and help us when we retire and have nothing to live on?

 

[Lynnie]

You should be in great shape to take advantage of a recovery lynnie!

;-) Thanks! I think so, too....rebuilding all of that seems overwhelming to me, but I will rebuild my little empire! And, it will be stronger and more fabulous!!

I'm a late in life baby - Daddy was a young man during the Great Depression......now, here I sit coming to terms with the fact the Great Depression might have been named too early....and erroneously named, too.

 

[traderx]

A shortcoming of gauging the market by the Dow or the SP500 is that those indices do not reflect that many stocks but more importantly, the major indices are cap weighted so that price movements can be skewed by large cap stocks.

A better way to gauge the market is to use a equal weighted broad index. Vanguard has an ETF, symbol VXF. It reflects approx 4,000 stocks on a equally cap-weighted basis. The bad news: it is doing worse than the Dow which one would expect in bad times. However, it is a more accurate picture of what is going on in the stock market.