Dow turns negative for 2006 (Down Near 185 points today)

MarketWatch.com (by Dow Jones) ^ | 1/20/06 | Tomi Kilgore

[Aquamarine]

Buy Oil and Gold and not the big conglomerates.

[SierraWasp]

BULLETIN >> DOW ERASES ALL '06 GAINS; WORST ONE-DAY DECLINE IN NEARLY 3 YEARS

[SierraWasp]

Mainly the oil futures jumpin up I think...

[Ernest_at_the_Beach]

Foxnews is saying it's Iran and Oil prices....and Iran moving it's money to Swiss bank accounts....before the sanctions.

[carl in alaska]

Friday's tend to be wild, however, so you can't make too much out of this. From here I think it all depends on the price of oil, that essential black gold that fuels our economy. I really think it's time for the Energy Dept. to send every American a brief guide on how to properly maintain their cars, inflate their tires, remove unneeded heavy items from their cars (like papers), and slow down a little on the highways so we all improve our fuel economy by 3-5% and take some of the strength out of oil prices, while taking some leverage away from Iran.

But in no way am I endorsing reduced speed limits, just less speeding. I can't drive 65 on the interstates, and I have unpleasant memories of when 55 was the speed limit and everybody was constantly speeding at 70 on the interstates.

[carl in alaska]

"Friday's tend to be wild..."

Friday's stock market action tends to be wild, not the restaurant chain...lol.

[farlander]

I won't come to that. But if it were to, 2.4M bpd would spell about $100/barrel. Which is still less than it the embargo times. It would damp industrial activity some, but not catastrophic. It is a price that could be paid.

[carl in alaska]

Yes, Iran and oil prices caused this, plus too many stock gurus ignoring oil prices and saying "buy, buy now" in the first two weeks of this year. That rally was unsupported by the geopolitical situation in my view. As Frank Zappa once said in one of his classic old songs..."what kind of a guru are you?"

[Christian4Bush]

I wonder if the press will call the final number "psychological", as they did when the Dow crossed 11,000...

/crickets

[SierraWasp]

Great point!!!

I wish to think there was a great deal more "reason" for this relatively little 200 point drop today than there was for Japan's huge drop just a couple days ago. It's already bouncing back and they are more oil dependent with less sources than we are!!!

I think Iran running to Swiss banks to avoid "sanctions" should trigger a TOTAL NAVAL BLOCKADE later today!!!

That's my not-so-humble OPINION!!!

[SierraWasp]

I meant to ping you to #70, in particular!!!

[jec41]

Got out of the market in 99. Went to currencies. I was in Chinese yuan when it was revalued from the $ last year. Right now I am sitting with dollars and IQD in a Iraq bank drawing 6 and 9% interest. If the IQD is revalued in the next 2-5 years I expect a wild ride.

[Moonman62]

Isn't it odd that every year, the stock market goes up the first week of January, and invariably ends up lower within the next three weeks?

This rally didn't make any sense because the Federal Reserve is in a good position to cause a recession this year.

[carl in alaska]

"People in the know are talking about war with Iran within a few months."

Would you care to give us a few names of these "people in the know?" Most of what I'm reading from informed writers points towards possible military action at some time late in 2006 or in the 2007-2008 timeframe. Some people may be spreading disinformation to try to speed up the pace of diplomatic and military action on Iran. I'm sure you have some ideas about who those people might be.

[carl in alaska]

Yep, the market goes up every year in the first week of January except for the years when it goes down, such as last year. Nothing ever happens every year in the stock market, and history rarely repeats itself in exactly the same way.

[SierraWasp]

Well you sure are following an interesting tack that I know nothing about. I was just getting ready to trip back to that Japan market correction thread from earlier in the week to see what actual percentage the Nikkie actually dropped that day last week, compared to the less than 2% drop in the Dow, today.

[Travis McGee]

Here is a chart to ponder for a minute.

By the time the ratio (now at 20 BTW) reverts to about 3, what will that mean for the price of the DOW, and the price of gold?

Also, note the similarity to 1929. What goes up fast, comes down fast.

[durasell]

What goes up fast, comes down fast.


Please don't remind me. I've already seen a doctor about that...

[JLGALT]

"I don't plan on retiring for 35+ years, so I don't think I ought to be too concerned about the level at which the stock market closes on January 20, 2006."

This is a Great comment! One days action means nothing, nor does on months or one year's. In 35 years you'll be one happy guy!

[SierraWasp]

I'm too shallow for all that stuff. (grin)

To: Southack; Christian4Bush; carl in alaska; Dog Gone; Ernest_at_the_Beach; BOBTHENAILER

The Dow shrugged off the oil pressue gauge today to drop only half what the Nikkei did just two days prior!!! Pretty impressive I think!!! (all things considered)

53 posted on 01/20/2006 1:59:33 PM PST by SierraWasp