The Dow just dropped under 9,000

DriftingByTheStorm

blackredyellow wrote:

6 minutes in today and it's now below 8000. 600 point drop so far.

WOooh!
DOW goes positive!
DOW goes positive!

We're saved!
We're saved!

jimed14

It dipped below 8,000 today ... and is right at that point again, now

yet, there are still lugnuts that want to throw smears around. Unreal.

callen

DriftingByTheStorm wrote:

Let me tell you the same thing i told my dad (who is thinking the same as you) last night:

Don't get all excited thinking, "now is the time to buy at DOW 8600, and make a sweet killing when it rebounds to 14,000 in 3 years."

There is NO reason to expect that this market couldn't trade between DOW 6,500 and 10,500 for the next DECADE or MORE.

That would make your double down at this level speculative at BEST, and at worst a 10 year LOSING trade.

Look, this thing COULD (and god willing, "should") pop back sometime ... but NOW is NOT the time to throw all your available funds at it.

If ANYTHING, you should be making sure you have PLENTY OF CASH on the sideline, and moreover, i would actually make sure you have a few thousand in PHYSICAL CASH!

Remember, only THREE percent of ALL the money in the system is REAL CASH ... if there is a REAL credit crisis, GOOD LUCK DRAWING MONEY FROM YOUR BANK.

People, you need to be thinking EXTREMELY defensive here, not getting greedy dollar signs in your eyes about all the theoretical potential for profit.

Wait a month of two, see what happens.
If it all blows over, you can buy at DOW 10,500 or 11,000 and still be perfectly happy. But you could throw your money at it right now, and watch half of the DJIA go bankrupt and be in the poor house.

The credit markets are THAT fucked up right now.
GM may be bankrupt by weeks end.

Slow your roll!

hear you and good points, but there are bunch of people that are just looking for a sign..any sign to jump back in. When they do it'll cruise right back up to 10,000 in a heartbeat. Thats why we see these large swings....speculation. Most companies are financially sound and thus their share prices are devalued at the moment. Stick to a few good companies. We'll see soon enough.

For sure after Nov 5th the value will climb if it hadn't by then.

beachdweller

may go under 8K today, been below 8100 already

jimed14

back over 9,000 ... up more than 500 points ... has to be a relief to a LOT of people.

I'm sure there will be profit takers later in the day ... but, overall, this is good.

DriftingByTheStorm

jimed14 wrote:

back over 9,000 ... up more than 500 points ... has to be a relief to a LOT of people.

I'm sure there will be profit takers later in the day ... but, overall, this is good.

Relief?
Absolutely.

Celebrating "all clear"?
Hardly.

I think the great satisfaction to be had here is the simple acknowledgement that the markets have not collapsed. I hesitate to even say that the markets "worked", but it would not be wholy inappropriate.

What friday demonstrated, and what today reinforced, is the recognition that the markets are still capable of SOME modicum of rational response.

The bottoming process that started friday indicates that the price on friday finally reflected the value believed to be in the market.

That is NOT to say that we can't or won't go lower.
It just means friday's price matched friday's value.

ANYTHING could change that valuation going forward, but it is comforting to know that we are not in an absolute buyers strike, and it will go a LONG way towards restoring confidence for the major players.

Take Away:
Be glad, be relieved, but don't be fooled in to thinking that "this is it", "coast is clear".