Thread: Dow Jones plunges 1,068 points, Wall Street bloodbath intensifies

I suggest waiting until the Singapore "triumphant success" is read by intelligent humans and the unravelling that the "discovery", that nothing was decided, starts to sink in.

The algos don't do fake news.

Originally Posted by bobo746

Will be in thailand next month hope it doesn't affect the aussie dollar.

I was getting 20 baht to an aussie early on in the month. Doesnt make thailand so cheap at that rate. Wallet took an absolute hammering

Some famous Wall st investor said "Buy in gloom sell in boom"

Some famous Wall st investor said "Buy in gloom sell in boom" that should be a given if ur gonna dabble... its the only thing i know about the stock market.

Here are a few words of wisdom.

^ One of this is my current signature

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US rate cut ahead

The Fed held borrowing costs steady, as expected, but its statement hinted at a future rate cut — as it dropped its previous references to being "patient" about adjusting rates.
"The [Federal Open Market] Committee continues to view sustained expansion of economic activity, strong labour market conditions, and inflation near the committee's symmetric 2 per cent objective as the most likely outcomes," it said.


However, it added that "uncertainties about this outlook have increased" — which was seen as a reference to the unresolved US-China trade war.
By saying it "will act as appropriate to sustain" economic expansion, the Fed signalled rate cuts of as much as 0.5 percentage points by the end of this year.
Nearly half its policymakers now show a willingness to lower borrowing costs over the next six months.


Even policymakers who did not write down a forecast for a rate cut this year believe "that the case for somewhat more accommodative policy has strengthened", Fed chairman Jerome Powell said in a news conference following the meeting.


The Fed had to tread a fine line at this week's two-day policy meeting.
"At the end of the day what they [the Fed] want to do is give a nod to the market," said Kristina Hooper, chief global market strategist at Invesco.

"Expectations had gotten so dovish that they need to give a nod to that, but at the same time not make any commitment and be forced to cut rates later on if conditions perhaps changed."

Many analysts believe the US central bank will cut interest rates as early as July to prop up the economy.

Here

Following on from ... https://teakdoor.com/the-teakdoor-lou...ml#post3961237 (Dow Jones plunges 1,068 points, Wall Street bloodbath intensifies)

The DJIA was up 244 points, close to 1% last night and has pushed through that important ceiling.
Assuming the Fed cuts rates in the next month or two and retains a dovish tone in it's outlook statements, the DJIA should power on for some more months yet ... maybe even till Christmas.



I'm still staying fully invested for the moment.

The DJIA is of less interest to me than the $ to baht exchange rate. Hoping the Fed rate cut and China's economic decline will strengthen the greenback a bit.

Risk comes from not knowing what you're doing? Or is it the 20 years to build a reputation and 5 to ruin it line.

Just kidding. And hey no guts no glory. As for myself I went on the defensive as I hit 21.5% ytd last month and am more than happy with that. Sure If I had stayed the course I'd be up three Lao houses since then but I'm going with the when people are greedy be fearful rule.

My heavy pic was/is way above the line into overbought territory and when it does, and it will, make a correction I'll jump back in.

That's how I play......

the fish.

Originally Posted by beerlaodrinker

I was getting 20 baht to an aussie early on in the month. Doesnt make thailand so cheap at that rate. Wallet took an absolute hammering

I share your pain BLD.

Just watched documentary about ENRON, they were master's of following trend of Dow Jones, big constant pay outs to various supporting analyst helped them gain their position and huge credit line with top banks, interesting docu...

Originally Posted by fishlocker

As for myself I went on the defensive as I hit 21.5% ytd

I'm up just over 60% ytd. At the start of the year I had a margin loan LVR of 36%.
Since, then I've been selling into strengths and reduced LVR down to 14% and intend to reduce it further.
Will probably go to 0% within the next 2 months

Originally Posted by Norton

The DJIA is of less interest to me than the $ to baht exchange rate. Hoping the Fed rate cut and China's economic decline will strengthen the greenback a bit.

I hear ya Norton. While I am enjoying my AMZN stock run p and my IRA growth I am more interested in the exchange rate. 32+ is a good number. We built our house when it was 35 /36.

One things that a pain in the ass is my salary is paid here in Thai Baht but wired from US so if its lower then agreed upon exchange rate in my offer, I have to expense the difference to recover it which is OK but they deposit that to my US acct not here.

Dow Jones suffers worst fall of year as US-China trade war flares


President Xi Jinping and Donald Trump...US President Donald Trump has imposed 10 per cent tariffs on $US300 billion of Chinese imports.

US stocks have tumbled overnight with the Dow Jones suffering its worst drop of 2019 after China retaliated to the latest US trade threat.

Key points:

• The Dow Jones Industrial Average sank 800 points on Monday, its worst drop in 2019
• Technology companies and banks were hardest hit
• The Japanese yen, gold and government bonds rallied as investors turned from risks

The fall was triggered by China letting the yuan tumble beyond the key 7-per-$US1 (7 yuan-per-$1.46) level for the first time in more than a decade.

It is a sign Beijing might be willing to tolerate further currency weakness after US President Donald Trump vowed last week to impose 10 per cent tariffs on the remaining $US300 billion of Chinese imports ($443.6 billion) from September 1.

Technology companies and banks fell the most. Apple and Bank of America each fell 5 per cent.

Bond prices soared, sending yields sharply lower, as investors sought safety.

• The Dow lost 760 points, or 2.9 per cent, to 25,717.
• The S&P 500 fell 87 points, or 2.9 per cent, to 2,844.
• The Nasdaq fell 278 points, or 3.4 per cent, to 7,726.

Safe-haven assets, including the Japanese yen, government bonds and gold, rallied as investors cut back on riskier assets.

"I think there's a sense that President Trump might try and escalate in terms of a reaction, if he thinks that this was a deliberate move by the Chinese to try and weaken their currency artificially," head of G10 FX strategy for the Americas at NatWest Markets Brian Daingerfield said.

More Here

One year DJI Chart with inflection points highlighted (by me)



Does the DJI 'bounce' now as it's hit the down tread line for progressive market lows?

The first 'floor' was the recent low of 24,815 ... marked in red

The second 'floor' was the low around New Year of 22,686 ... also marked in red

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ME? I went from International Shares to a cash equivalent on Friday with my Super/401k plan.

But it takes a little while to filter through. I just hope I missed the overnight carnage.

Who would have thought, eh?




When everyone is greedy........

fish

Originally Posted by fishlocker

Back to December 1st 2017 levels. Guess what, the rich just got richer as they clawed in the years gains of 20+% while irrational exuberance and the fear of missing out kept the masses in the market. They will buy back in to pump another 10 to 15% out by mid year.

the fish

Perhaps, more trusted is to play in Las Vegas...

Originally Posted by Klondyke

more trusted is to play in Las Vegas

Naw... no luck required, right outta Wall Street, "Fundamentals", invest in a well diversified portfolio and allow to age.

Today, my heart-breaking cry for the richest...

World's Richest Lose $117 Billion in One-Day Market Meltdown


The wealthiest 500 people on Earth lost 2.1% of their collective net worth on Monday as U.S. stocks plunged in their biggest drop this year.

Twenty-one members of the Bloomberg Billionaires Index lost $1 billion or more as investors reacted to stepped-up tensions between the U.S. and China. Amazon.com Inc. founder Jeff Bezos declined the most, shedding $3.4 billion as shares of the online retailer tumbled. But he’s still the richest person on the planet with $110 billion.

The loss is an abrupt reversal for the world’s richest, who up until today had experienced steady gains.

Other forces have also eroded fortunes in recent weeks. Hong Kong’s elite are feeling the pain from nine weeks of protests that have jammed the financial hub’s streets, weighed on growth and battered local stock prices. The net worth of the 10 richest tycoons who derive their fortunes from Hong Kong-listed companies has tumbled $19 billion since July 23.

Even after today’s losses, the 500 individuals on the index control almost $5.4 trillion, an 11% increase from Jan. 1.

https://www.bloomberg.com/news/artic...arket-meltdown

Originally Posted by Klondyke

Today, my heart-breaking cry for the richest...

Not to worry, Uncle Sam'll help 'em out...

https://www.fns.usda.gov/snap/supple...stance-program

Originally Posted by forreachingme

Just watched documentary about ENRON, they were master's of following trend of Dow Jones, big constant pay outs to various supporting analyst helped them gain their position and huge credit line with top banks, interesting docu...

I was disappointed when I learned of he death of Kenneth Lay, the Enron CEO. Quick heart attack and it was all over for him, 64 years. The man caused so much pain for so many he deserved time in a prison to think about what he did to others.

^ e pluribus unum

Originally Posted by cisco999

Quick heart attack and it was all over for him, 64 years.

...either for his dear friends...