Posted on 06/05/2013 1:25:37 PM PDT by SeekAndFind
Stocks posted sharp declines across the board Wednesday, with the Dow ending below 15,000, following weakness in overseas markets and amid concerns over when the Fed will start tapering its bond-buying program on the heels of several mixed economic reports.
"There has to be some sort of convergence between stock prices and economic data," said Sal Arnuk, co-manager of trading at Themis, noting that the move lower has been "quiet and orderly" with "adequate volume." "The selloff's based on lukewarm economic data, fear over Fed tapering and it's also somewhat natural given the highs we've recently made."
The Dow Jones Industrial Average tumbled more than 200 points, suffering its worst one-day drop in nearly two months, led by Alcoa and Walt Disney.
The S&P 500 and the Nasdaq also ended sharply lower. The CBOE Volatility Index (VIX), widely considered the best gauge of fear in the market, spiked above 17.
All key S&P sectors were in the red, dragged by materials and financials.
(Excerpt) Read more at cnbc.com ...
What possibly could be causing this turmoil?
Well, thankfully, we know it can’t be the central socialist government headed up by an unknown Halfrican muslim. Right?
I mean, really. This is the most transparent government in America’s brief history. Like, wow. We’ve performed a unique experiment by electing our first African president. He, in turn, has rewarded his loyal supporters by appointing only the most bizarre staffers.
We have much to be thankful for.
Sell baby, sell. They’ve been talking about it for weeks already.
Not selling. Getting ready to buy. They are going into a next round of bankrupting the middle class.
I got out when gold topped off and am holding cash. Looking for that good stock that is going to take the hit.
My prediction is another round of BOA. First thing Obama does is go after the banks. All the players sell, stck drops a few points then they buy it all up. Wash, rinse and repeat.
The wings are a shakin’ and the stall has begun.
Let Krugman and his clueless minions keep the stick and we’ll soon be in a full spin.
Gee, the market NOW is finally adhering to reality. What was it doing the last 9 months?
Has anyone seen what the Japanese market has been doing? It is in total crash mode.
Sell, THEN buy.
Do I sell everything and pay the 23.8% tax?
No.
“But look here — the new Blackberry is out! Look at it! LOOK AT IT!” — CNBC for about two hours today
The question is whether the market confidence is driven by stimulus or by actual recovery. The jobs report and economic indicators (I give more weight to The Conference Board than what the gummint puts out)look positive. Not strong, but not negative, either. The May ISM ROB shows upticks in new orders and employment in the US manufacturing sector also, although the PMI dropped overall.
You’ve got to do your homework to know the truth about what’s going on in the economy.
Industries reporting growth: Printing & Related Support Activities; Nonmetallic Mineral Products; Fabricated Metal Products; Wood Products; Furniture & Related Products; Apparel, Leather & Allied Products; Food, Beverage & Tobacco Products; Electrical Equipment, Appliances & Components; Machinery; and Paper Products.
The six industries reporting contraction in May — listed in order — are: Miscellaneous Manufacturing; Transportation Equipment; Chemical Products; Plastics & Rubber Products; Computer & Electronic Products; and Primary Metals.
Not long ago, Ben Bernanke looked the financial world in the eye and publicly promised that he would not stop purchasing $85 billion worth of bonds each month until our unemployment rate fell to 6.5 percent — much lower than it is now.
So why is the financial world wringing its hands now in imminent expectation of an end to the Fed’s bond purchases? Have they lost confidence in Ben Bernanke’s character? Do they no longer trust him to keep his word?
And why, while the markets have been falling, couldn’t Mr. Bernanke try to stabilize them by stepping up and publicly reiterating his 6.5% promise? Is Ben Bernanke a knave or a fool or a nebbish?
Japan was up almost 50% for the year then falls 30% but is still up 20% for the year (vs 10% for S&P). I wouldn’t call that a crash. :-).
That is exactly How I have handled every down turn since 1987... just stayed the course. Over any 7-10 year period I have regained any short term loses.
Did lose about $50.00 a share on Blackberry so I don’t look at them any more.
I saw some government pensioned, elderly lady investors trying to jump rope and chanting, “Sell in May, and go away.” Looks like the herd is getting spooked.
You and me both. I’m ready to re-position my portfolio. I love the mREIT dividends, but it may be time to vacate that sector.
Financials?.............got bit in the rear by them back in ‘08, so I’m hesitant.
I heard Obama talk about Bank of America and the stock went down to 4. A friend of mine who is in the business said this wasn’t a coincidence.
BoA is now at 13, up 87% from January 12.
He told me to wait until Obama hits an industry. Hold off until the selloff ends then buy as much as you can.
That sounds like a good technique!
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