Posted on 05/06/2010 4:23:24 PM PDT by blam
Stock Market Panic Dow Crash 1000 Points Before Fed Steps in to Buy
Stock-Markets / Financial Crash
May 06, 2010 - 02:56 PM
By: Nadeem Walayat
The sovereign debt crisis shock waves emanating out of Greece triggered a stock market Free fall crash today as the Dow sliced through support after support to all the way below Dow 10k, hitting a low of 9,872 before the Fed as part of the Plunge Protection Team (PPT) stepped in to halt the panic selling and triggering an equally phenomenal a 700 point reversal less than half an hour from today's close.
The imbecilic banking sector led the collapse in stock prices as a consequence of the sectors huge exposure to subprime government bonds such as the Euro Zones PIIGS that continue to slump in the face of a defacto Greece Debt Default.
The stock market rally has been in an increasingly weakened state as it entered the window for a significant correction that was forecast to occur between early and Mid May (23 Mar 2010 - Stocks Stealth Bull Market Trend Forecast Into May 2010 ).
My weekend analysis (02 May 2010 - Greece Debt Crisis Storm Cripples Stock Market Rally Resulting Stock Price Churn ) concluded that the crippled rally which just managing to hang onto support at 10,974 at the time was less than 40 points from the SELL trigger of 10,970 (there had been NO Sell trigger triggered since late Feb 2010) which would initial target a trend to 10,750 and then 10,550. Both of those levels went up smoke in today's panic stock market price action which demands in depth technical analysis that will follow this weekend, preceded by yesterdays fundamental analysis on the sovereign debt crisis emanating out of Europe's Achilles Heel (05 May 2010 - Greece Economic Depression Resulting in INFLATION NOT DEFLATION Surge ).
Your Analyst hitting the Buy Button on BP Stock and looking for other bargains.
Oh yes,, and pay no attention to the man behind the curtain....Toto,,,, we are NOT in Kansas anymore!!!!!!!
>>According to Fox News the deep drop was caused by a wrong number being entered in a computer.<<
Yeah, I heard that earlier today. Frankly, it is actually possible, but unlikely. Also, if you cut the downward spike out of the graph for the day, it still ends down at a level that follows the days trend before the spike.
Tomorrow will be interesting. :)
I would guess, that alot of people would go Greek if that information was published.
I met a money man moments ago who was present and active during the event.
A large sell order was placed for PG and other stocks and within seconds all the available buy orders were filled. With no buy orders, the prices dropped to 0. He said that Sam Adams Beer stock was literally 0 for a while.
I smell a rat, or two, or three ...
Soros?
Strong?
Goldman Sachs???
Umm, by the way,, looking for some ocean front property in Nebraska?? I have some to sell :-)
The Plunge Protection team is real. They buy on large drops. How about IMF bailing out the Greek Socialists. Is that where you want your hard earned taxes spent.
Hmmm..., it sounds like the U.S. Government stands to make quite a bit of money on their buy ... LOL ...
I mean, if they bought that low and it comes back up again, because of their buy ... it’s like making free money ... :-)
Just curious....what was the position of Soros and that fellow Jimmy in Shanghai?
Reagan started the plunge protection program.
Our quota responsibility in the IMF is around 17%.
Yep our taxes going to pay for fat lazy 45 year old retired Greek government ee’s to sit on a beach and sip OUZO! That Sucks!
you don’t think the free markets actually determine anything do you?
You may be right (sounds like something they would do). I just don’t know anything about it. Seems like market fraud to me...
I think they are feeding the computer glitch story to avoid further panic tomorrow. I think the drop is a reaction to what is happening in Greece.
Congress can stop it but I doubt there are more than a handfull in the bunch who will have the stones.
I agree. Plus their story allows for the idea of more regulation of trading.
Next market support test is down around 9,000.
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.