Popcorn day

peternap · October 16, 2008, 03:32:26 AM

It's 4:24 Am...do you know where your money is? I damn sure do...in my pocket and it's staying there today.

To paraphrase a song from the Grinch.....I wouldn't buy stock on a night like this......for two dollars and fifty cents!

The bottom has dropped out of the Asian Market and we have a batch of economic reports due today.
The Japanese really got slammed and had the biggest drop since the crash.

The movement today needs to be carefully watched.

peternap · October 16, 2008, 07:49:27 AM

That's odd. The futures and premarket are up. We crash the Japs and the market goes up. I might need more popcorn.

October 16, 2008, 09:38:42 AM

Now it's behaving like the stockmarket we have grown to know and love.

desdawg · October 16, 2008, 09:40:36 AM

Give it an hour.

Whitlock · October 16, 2008, 09:56:50 AM

What I don't understand is why is gold going down so fast. With this trend in the stock market gold should be on the rise. Maybe they are taking profit on it. Or someone is manipulating it

October 16, 2008, 10:04:44 AM

To understand the gold market, google GATA

I think we go under 8000 today.

muldoon · October 16, 2008, 10:17:13 AM

Quote from: Whitlock on October 16, 2008, 09:56:50 AM
What I don't understand is why is gold going down so fast. With this trend in the stock market gold should be on the rise. Maybe they are taking profit on it. Or someone is manipulating it

Or someone is selling it, which is an easier explanation to me than manipulation.

My best guess is that a hedge fund blew up and was liquidated or margin called. It dropped off a cliff right as the comex opened. Force selling to meet other obligations. It's why we have 700 point down days, why brent crude touched 63 a barrel last night, why gold fell off a cliff this morning.

We just had 401k quarterly statements go out, tons and tons of people are pulling their funds - which leaves these asset manager with many redemption's. To meet the requests, they must sell holdings, enter more down days, more crushing commodities prices. These losses drag other asset classes down with it because those who used leverage must sell anything they can to meet the obligations of their losses. With GLD doing as well as it had this year, I'm sure it would be the first thing a brokerage would be selling to raise cash, especially in a margin call for their clients position.

gold has actually held very very well. Go look at the yearly for copper, corn, wheat, etc which all have been cut in half since June.

Look in the news later today or tomorrow to see who blew up.

muldoon · October 16, 2008, 10:25:45 AM

citadel in big trouble - http://www.marketwatch.com/news/story/story.aspx?guid={3E70B6BF-405C-4F80-A975-232F0D75AF3D}&siteid=rss

absolute closing two funds - http://www.wealth-bulletin.com/home/content/2452178382/

concordia and gsa - http://www.finalternatives.com/node/5774

this article alleges some 43bill has been pulled so far and the worst is yet to come - http://www.finalternatives.com/node/5775

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These are funds that are actively liquidating or in close danger of it. Those who are just being margin called and broker liquidated wont be in the paper.. not until they go boom as well.