Posted on 08/25/2015 1:32:19 PM PDT by blam
Myles Udland
August 25, 2015
Stocks had another brutal day on Tuesday, closing in the red after a furious rally early in the day was completely erased in the final hour of trading.
On Tuesday morning, the Dow was up as many as 420 points in a big bounce after Monday's 588-point loss. The S&P 500 and Nasdaq were also up nearly 3% early on Tuesday.
The market, however, couldn't hold onto its gains in a disappointing close, and when all was said and done, the Dow finished about 600 points off its highs while the S&P had its biggest one-day reversal since the height of the financial crisis in October 2008. And in just the last week, the S&P 500 is down almost 11%.
First, the scoreboard:
• Dow: 15,666.44, -204.9, (-1.3%)
• S&P 500: 1,867.62, -25.6, (-1.3%)
• Nasdaq: 4,506.49, -19.8, (-0.4%)
(snip)
(Excerpt) Read more at businessinsider.com ...
The long slide back to value...
Earlier today we explained why far from supporting the stock market, all the Chinese RRR cut did was offset already used funds to support currency intervention following the August 11 devaluation: the one sentence from SocGen that put it in perspective was tthe following: "In perspective, the PBoC may have sold more official FX reserves than this amount since the currency regime change on 11 August."
Hence, the RRR cut was a retroactive move, not at all proactive as the market's initial euphoria indicated.
Which, ahead of China's close tonight, could be very bad news for those hoping for a rebound in China's Shanghai Composite which as a reminder closed below 3000 for the first time since its bubble runup which started last July.
Dead cat flop.
But the media kept telling us Obama was giving us GREEN SHOOTS and we were in the SUMMER OF RECOVERY!!!
What if the Shanghai Market didn’t open tonight?
I’m long in certain areas for a short 1-2 week reversion to the mean before the bottom falls out.
Although my shorts remain - just in case.
I’m sorry to laugh, but after hearing all of those stocks guys crowing about how yesterday was just a nothing slump and that it would be all back to normal today, and that it’s “bargain hunting” time, this was a hoot to see.
Dead cat bounce on wet cement.
Is it the end of the world yet?
and it will still be Dubya's fault...or the pubs....
Does this now mean, it’s no longer a “Just buy the dip” market?
Thought that could go on forever /s
Cool. Switching 3% of my portfolio from cash to stocks, as of close of business prices.
Come on baby. Give me another -5%! I’ve got dry powder (~22%), and I need more buying opportunities!
I’m sure the Diaper Wetters at BI are concerned about how this looks on their guy in the White House. After all BI spent all of 2012 trying to give the same guy credit for the market uptick while scolding those who suggested the whole market was a house of card built on sand. It’s only shocking it took this long to get here, but here we are.
The Free Market drinks the Fed's milkshake. It's drinks it all up!
Analysts were crowing this morning that the “rally” was due to the Chicoms lowering interest rates.
THAT’s all we got to grow with now?
Seven summers now of Brobama’s recovery, I don’t see how we survive an 8th.
“Does this now mean, it’s no longer a “Just buy the dip” market?”
If this keeps up, it’ll be “buy the crater.”
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.