Posted on 09/27/2010 2:35:04 PM PDT by blam
Stocks Hit A Wall And Tank: Here's What You Need To Know
Joe Weisenthal
Sep. 27, 2010, 4:00 PM
RIMM Sep 27 2010, 04:30 PM EDT 48.36 Change % Change -0.51 -1.04%
SPY Sep 27 2010, 04:44 PM EDT 114.27 Change % Change -0.55 -0.48%
A day after Friday's Mega-Tepper-Rally, stocks slipped.
But first, the scoreboard:
Dow: -46.25
NASDAQ: -12
S&P 500: -6.29
And now, the top stories:
* It looked like things were going to be pretty bullish when things got going in Asia overnight. But Japan and China surged. Ongoing tensions between China, the US, and Japan (tariffs, captured fishing boat captains, and detained Japanese videotapers) didn't seem to have much impact on the market.
* European shares started off strong, but ended weak. Moody's whacked the debt of Anglo Irish Bank by three notches. Irish bond spreads continue to widen.
* The US didn't have much in the way of macro news. Both the Chicago Fed and Dalls Fed indices were pretty weak, though neither seemed to roil the market all that much. Once again, the day was characterized by low volume and low volatility.
* The biggest news of the day market-wise was that shares of Progress Energy experienced a mini flash crash, losing almost all of its value in a few seconds.
* After the bell, Research in Motion is unveiling new products, including, perhaps, its competitor to the iPad. Follow the action LIVE here.
* On the currency/macro front, there wasn't anything too huge. The Yen continues to strengthen, giving them heartburn in Tokyo. The euro made a run at $1.35, though it couldn't quite hold it.
[snip]
(Excerpt) Read more at businessinsider.com ...
Joe Weisenthal
Sep. 27, 2010, 4:06 PM
We could kinda see how it might be conceivable that David Tepper helped spur a big rally on Friday, when he came on CNBC and announced how bullish he was.
But this can't be true... Some are suggesting that Bob Prechter coming on CNBC at around 3:40 and calling for Dow 1,000 somehow hammered stocks.
Sorry, but if the market fell because of Prechter, then something's seriously wrong. Prechter is ALWAYS bearish (basically), and he's always bullish on the dollar, and we didn't hear a shred of anything new during his appearance. Here he was in July calling for Dow 1,000.
And he didn't have any new arguments either. It was just Prechter being Prechter. He's always interesting, but market moving? Yeesh.
All that being said, we're pretty sure the market had already started sliding before he came on, so we don't think he had anything to do with it. We hope not, anyway.
Update: Here's the video.
(click to the site to see the video)
[snip]
I hardly see how a 46-point drop in an index over 10,000 could be called “tanking”.
Profit-taking maybe, but not “tanking”.
But, this is what you get when you pretend that blogs and sales pitches are “news stories”.
I’ve been waiting for the big boys to set the hook and reel the money in chasing the market these last few weeks. May be time.
If the Communists are not ousted you will find out the hard way what ‘tanking’ really is.
Too bad that investors are so accustomed to the historically ephemeral huge gains of the last decade. They expect huge gains as a right now. When the slightest blip occurs so many people dump out. Investors are going to have to get used to the idea of long-term investment again.
The bubble isn’t coming back. Maybe people will actually have to work to make a gain.
Of course the market is broken.
No one has yet figured out how the “flash crash” happened and now we had this http://www.bloomberg.com/news/2010-09-27/progress-energy-stock-halted-by-u-s-volatility-curb-trades-later-voided.html today where the new circuit breakers did not work as they were supposed to.
Today, "long-term investment" is holding a position over the weekend.
Thanks. I didn’t know about that.
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