Posted on 05/10/2022 6:44:07 AM PDT by Tell It Right
Dow is down 142 and falling.
The answer is obvious. Covid panic.
They are also de-leveraging, selling off their margin borrowing (margin is when you have a $100 stock you can borrow $50 from the broker to buy more stocks, but when that $100 stock goes to $80 you can only borrow $40 so you have to sell off a substantial portion of your holdings or raise the cash to cover the difference).
Dow fell to a 52-week low, then a mini rally.
They will fight the battle to hold 32,000, just like yesterday’s little fight to prop up 4,000 on the S&P.
This is all day traders and computerized high-volume trading by large firms. Mom and Pop get slammed as usual. I think we’re heading down, down, down for months to come as this market is still very overvalued. Earnings will drive some of this. Recession signs will be a factor too. Markets price things in months before the actual reality.
Agree w/your spot on analysis. ❇️
I 100% agree. I like my solar system only because it's an energy source the Dims haven't figured out how to control yet. If I could drill my own natural gas and/or oil and process it I would. Those are much more efficient and dependable. As it is, I'm a few days from the 1-year anniversary of installing my solar system and it produced 58% of all the power we consumed the past 362 days in our two-story now all-electric house. The only thing that makes it worth the cost is that the Dims are doing their best to destroy efficient and otherwise cheap energy sources.
And if the Dims are successful in forcing or convincing the masses to drive EV's, they'll jack up electricity costs like they already do oil and natural gas. (Actually my power rates have already gone up this past year even if my overall bill is way down.)
Now down 175. LOL.
Short sellers covering their bets.
*************
Yes. I think you are right.
A lot of market participants haven’t seen a real bear market before. If the sell off continues many of them will bail out thereby exacerbating the sell off.
If you don’t sell, you don’t lose.
I have a point driven well for my alternate water source. It took two weekends to pound and install the well pump and plumbing. We pit a little rustic looking garden shed over the well and put the pump and bladder tank next to the swimming pool systems so nobody picks up on it. I just run a few hundred gallons of city water now and then so they don’t think the meter is bypassed. I have an open / close once you’re inside on the city water. We have very sandy Delta soul here so the water quality is excellent. No water softener needed.
After it goes down, it goes up. After it goes up, it goes down. So why the sheer panic and hysteria the other day when it went down? It always goes back up again, so the news of its “plunge” is not news.
They always pick the DOW, which is now around 32,000. That’s because a “400” point “plunge” sounds like more than it is.
An equivalent point “plunge” for the Nasdac would be 150 points. Doesn’t sound as dramatic.
Didn’t hold….yet.
Joe Biden, worst thing ever for the economy!
Correct. FWIT margin debt has decreased a little since last fall.
I’m comfortable with my holdings and allocation so not selling. Know what you own.
I would like to comment on your "active investing philosophy" below:
IMHO if you move money around a little (active investing) not trying to time it for the exact week or month (swing trading) then when you expect a large market downturn it's good to park some money into a long-term treasury fund.
I agree and would especially recommend this strategy for investors who are retired (me) or near retirement.
Clarification point: I believe in moving money around a little. I am still researching long-term treasury.
In March 2020, I was 60% stocks, 30% bonds and 10% cash. Around March 15th, 2020, I went "All In" stocks and was richly rewarded.
One more comment......
The market is America. A long term position is in effect having faith in America. Investing in America is a sure thing.
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