Posted on 03/16/2020 5:06:21 AM PDT by John W
Stock futures were down sharply on Monday even after the Federal Reserve embarked on a massive monetary stimulus campaign to curb slower economic growth amid the coronavirus outbreak.
Stock market futures hit “limit down” levels of 5% lower, a move made by the CME futures exchange to reduce panic in markets. No prices can trade below that threshold, only at higher prices than that down 5% limit.
Dow Jones Industrial Average futures were off by more than 1,000 points, triggering the limit down level. S&P 500 and Nasdaq 100 futures were also at their downside limits.
This led traders to look at the SPDR S&P 500 ETF Trust (SPY) — which tracks the S&P 500 — for a better indication of how the market will open. The SPY ETF plummeted 10% in the premarket, signaling that a “circuit breaker” will be triggered shortly after the regular session starts. ETFs that track the Dow and Nasdaq 100 — the SPDR Dow Jones Industrial Average ETF Trust (DIA) and Invesco QQQ Trust — were also down more than 8%.
(Excerpt) Read more at cnbc.com ...
I’m dumbfounded that this is happening again. I can’t believe anyone would sell down here for what is a temporary, though very serious, economic crisis. I honestly expected the Fed action and the fiscal action to combine to cool things down .
while we figure out what this is really looking like.
Its as if the action taken made someone think this is even worse than was being factored in last week.
And by “someone” I do not know who in the hell I mean.
I need to find someone willing to sell some boxes of silver eagles this morning.
I gots the urge to hedge my bets here and silver looks like an opportunity...if I can find some.
Premium seems to be nearing 5$/eagle
This is a lot of chickens coming home to roost-not just this event. This is what so many have been warning about with ridiculously low interest rate and cheap money buying the market rather than the average investors. This is the result of terrible monetary policy for many administrations.
The Fed cutting rates is a sign of panic by the Fed, to investors. The Fed needs to step away!
It’s going to go down much much more. You can’t shut the world down without ramifications. Once the fake panic of this glorified cold goes away, the real panic of total economic collapse begins. It can’t just come right back either.
The world has panicked itself into a global depression that will ultimately result in the deaths of millions.
I wish there could be a 30 ban on short selling.
I can’t believe anyone would sell down here for what is a temporary, though very serious, economic crisis.”
Our economy is basically shutting down. Many people won’t have jobs for awhile and that spending is stopping in the economy .
Politics aside, that’s a very bad thing.
What parallels have we seen?
This is way worse than 911, most people were working after 911.
I think you’re right about the past. Rates generally have been too low and liquidity too generous.
Silver makes sense at these prices.
I don’t understand why AU and AG are down so much. Typically precious metals go in the opposite direction of the DOW
CNBC Celebrates.
Should be another interesting week on Wall Street — strictly, academic for me — I pulled the rip-cord at 27K and will just watch on the sidelines.
Oh well, ta da.
Go and play.
Most of the market investment has been from corporations buying stock-and not people. For example-Boeing took out a $60 billion loan recently. They have a broken plane. What did they do with a significant portion of Th at money? Bought stock to boost their stock prices.
Will probably open down -10%
Feels like people are just selling anything with a bid to it to raise cash. Amazingly a lot of people are leveraged.
“ I honestly expected the Fed action and the fiscal action to combine to cool things down .
That was a signal that this is more serious than the market expected.
If economic growth is down, Company earnings are down.
If earnings are down, prices must drop to be fairly priced.
This is one case where I wish the fed had announced a wait and see approach. Instead, this signaled panic.
But I mean the prices are already down by 1/4.
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