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Dow Closes Under 10,000 For First Time Since February 7
On a day like today, when the entire CNBC fast momo brigade said it was buying into the close (we would show you the clip of just how worthless intraday trading advice on CNBC is, if only the propaganda station had not pulled the episode), there was just one way for the marker to close: below 10,000. The fight over the 10k barrier, which the traders over at Liberty 33 find important for some reason, was fast and furious, but in the end, reinforced by a deteriorating euro, the bears won, closing at 9974.4, further plunging after hours. The Dow is now at the lowest close of the year, with the only times the Dow has closed under 10k being in a three day brief period between February 5 and 7th. Also, looking at the EUR panel, things are going from bad to worse. Absent China lifting every other offer, which would be confusing in light of SAFE's earlier negative announcement on European bond holdings, we could easily see a 1.20 handle by tomorrow morning, which would solidly push the S&P on its way well into triple digit territory.
The drop from the Dow highs one short month ago is now over 11%.
And this is how the bloodbath after hours is looking like right now:
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And the Euro is getting its ass handed to it again!
The night is young. Wait till Asia opens...
Whatcha thinking? Gold/dollar/euro/equities.............
We'll after China's annoucement if I were holding Euros in Asia I would want to reduce my risk.
Ok, personally I would sell $ for gold, but Euros for gold sounds good enough ;)
bear in mind, bullish VIX cross 50 day through 200 day tomorrow. coupled with a pretty nice looking bullish hammer on the vix daily
and assuming numbers 1 and 2, next week potential for bullish vix cross weekly, with the 50 week crossing the 200 week. last time that happened? Late september 2007.
There will be no coming back when the weekly cross happens. Frankly, its starting to look like a done deal now.
well at least leading economic indicators have rolled over and that is before the huge payback coming from housing policy and forced inventory build due to stimuli
that should soften any blows from the dual daily and weekly vix crosses
What is the rationale for analyzing vix charts using technical analysis? What is vix? its an index designed in Chicago to track weighted implied vols on ATM options on the S&P 500 index. So you are using technical analysis to analyze the "bullishness" of implied volatility... You're essentially saying... well i predict tomorrow people will ask for marginally more premium for options because they will be marginally more afraid for the super short term ATM exposure. I think using technical analysis for stocks yields little consequence. If you can make money on TA good for you. But using it on derivatives and characteristics of derivatives on stocks? come on....
good point, i'd urge you to ignore it
If TA works at all, it has to work everywhere. So long as the price series changes according to the buy-sell decisions of freely-transacting market participants, it can be analyzed with TA.
Personally, I think TA is voodoo. But like any religion, voodoo has its uses.
I would not see it like "predict tomorow" but rather as a warning. At least, don't go long at that moment let's say...
So, the PPT's short silver, gold and long SPY, huh?
All right, fall d@mn it! I wanna see flames from the atmospheric friction!
Beautiful, just beautiful.
The only thing they were buying was Ms Regan's outfit......
Poor Simon having to cheerlead US style, I bet he misses the more balanced Euroland CNBC output.
Here's the Fast Momo Clip, 10mins in their all buying the close,
http://www.cnbc.com/id/15840232?video=1504766835&play=1
Hmmmm.... They pulled that video too.
Its there, if it's busy it will redirect...
Even Jimbo didn't want anything to do with the market going into the close.
Note the soft left Ms Drury pan's normally reserved for MCC(s)
http://www.cnbc.com/id/15840232?video=1504831033&play=1
Crazy is the ship of fools
here it is in writing...
CALL THE CLOSE:
Jon Najarian I’m a buyer.
Anthony Scaramucci: I’m a buyer
Joe Terranova I think the market heads higher
Brian Kelly: I’m a buyer
Up, up, that's what we want, that's what Fed will provide. Simple, isn't it?
'I'm also a buyer'
LOL
Ben Bernanke: I am definitely a buyer, but maybe after hours.
Come on, I just peeped the index 5 seconds around noon at work and it seemed very clear there was not enough substained momentum to buy this 'rally'
laugh of day: FASB to vote on rule to force banks to M2M the loan portfolio -- something tells me the NYFRB is burning up the wire
If FASB votes to require M2M, FAZ will be in the mid-20's tomorrow. SPX will have a 9 handle.
SPX will have a 6 handle.
Make that an insta 2 handle!
Even though M2M should be implemented - let's be realistic. That's like expecting Megan Fox to show up on your doorstep tonight.. in Compton, CA. Yea - that home where the crack dealers and Crips are hanging out in your yard.
Crack? Meg Fox? Nah...
But Lindsay Lohan might make it if ya' throw in some Smirnoff.
That's odd. Megan just told me that's where she was headed next as she zipped herself up and put on her shoes.
LOL! U wish CD... and so do I.
Interesting, looks like their target for implementation would be right around November. What an amazing and completely unexpected coincidence.
It's good to know the crisis will not be wasted.
BOJ to the rescue....strike that return of the Kamakazie
Helmets ON!
The US Treasury wants a strong dollar policy and it seems their wish is coming true.
To quote Douchinger, "Uh Huh"...And where is the DOW when priced in gold?
It amazes me how someone can be otherwise reasonable, logical, and well versed in economics and say something like this line from his blog today:
"The last time I checked they didn't take 100oz bars at WalMart, but they sure do take $100 bills."
Carl, what do you do when that $100 bill only buys you a gumball?
It's like he's Rainman or something.
In my opinion, one can be an astute investor/forecaster (whatever), but if lost on gold, all is lost.
Exactly.
No. Rainman could do math.
Rainman had vision. He does not.
the new $100 bill will be out feb 21 , 2011. photos of it in this months coin world.
or to quote a madman from Texas where is the Dow if you price in inflation?Mr Ure is correct that the high for the Dow was 1987 (or was it 2000?)f you price in inflation . The only way from here is down being we have never actually reached any new highs .
And that's assuming you plug in the "official" inflation nubers. Try shadowstats.com for some better numbers and the entire shooting match ain't looking very good.
Now we know why B'rock O'Bottom suddenly ordered some troops to the border.
http://www.foxnews.com/us/2010/05/26/terror-alert-mexican-border/
Like Miles and I were saying the other night, ominous.
Yes, such a dramatic change of position. Very ominous, indeed.
I'll give you another...A couple of days after the "interrogation" of the NYC car bomb suspect, Democrats (the supposed defenders of civil liberties) propose suspending of Miranda rights for US citizens accused of assisting terrorists. What the fuck did they learn from that asshole that they were suddenly so compelled to make that suggestion?
Nothing.
That sounded like a rhetorical questing but I like saying it.....
They learned nothing.
They know NOTHING!
Yeah, and then suspend Miranda and Habeas Corpus for regular red-blooded American citizens....not the "Enemy".
Magna Carta in Shreds
Heh...Keep "them" out? or us in?
I don't care what TA says. Looking at TA is like driving while looking at your rear-view mirror. Odds are there is a bigger chance for downside than upside - esp. in the Euro/Asian markets. I limited exposure to ES though - gov't manipulates that index way too much.
I've done that before (steering with only the road behind me as my guide). Kinda reminds me of my buying strategy.
In that case, i propose to you a different scenario.
I look at my rear-view mirror once in a while when driving. Does it sometimes trick me, or tell me a car is closer than it appears? Yes. For the experienced drivers, my rear view mirror has saved many a crash.
As for manipulation in ES_F... um can you tell me where there ISN'T manipulation?
+1000 well said...
and for manipulation... you can manipulate short term, but the natural forces of market are much stronger than the gouv. thus they will have the final laught.
At this point I wouldn't be surprised by a crash, full rebound, and then some consolidation...all before the US market even opens tomorrow. Anyone have the sense this thing is on the edge of getting out of (bulls) hand?
Here's hoping the Asians run in panic as if Godzilla invades Tokyo. Where's Takafumi Horie when you need him? A Takafumi Horie-like story would be icing on the cake.
hahahaha
http://www.youtube.com/watch?v=_EAXYH4b4yM
My hinder!!!
We need Ultraman
http://media.animevice.com/uploads/0/5/86929-ultraman2_super.jpg
Meanwhile, with all the attention on psychological but otherwise meaningless 10K, the S&P actually closed below an important technical level.
Will anyone care if a bunch of banks are closed after hours on Friday? Seems odd the FDIC only closed one last Friday. I think it is likely they have a number that a 3 day weekend will help "absorb" as information. But the markets on Monday in Asia and Europe could be quite exciting while we're on Memorial Day holiday.
now that it is obvious we were right all along, what happens next? crash it, get rid of the old power structures, start anew. but how?
Somebody with a lot of money willing to lose a lot of money. I think you could cause some pretty serious chaos with 100 mil.
Here's a trivia question for all: How many times has the Nikkei closed up during the last three weeks? Talk about decoupling!
I admit that I watched the CNBC Fast Money show last night.
They were crazy bullish. Buying steel, oil, Potash, Apple, financials,small caps you name it.
These weazels will tonight try to convince us that they sold at the highs and made money all day.
Liars.
You're just now figuring this out?
Well, after the SHTF you'll still need the oil for energy and the potash to keep your food production high.
You may want to own the rights to lots of those commodities, then.
Gypsy's, tramps and thieves. That's all they are on that show Bruce.
admitting that you watch CNBS let alone Fast Money is a brave thing to do, sort of like admitting that you Tivo "The View" because you don't want to miss Jerry Springer
I like you, Bruce. Leo, not so much.
Stay tuned for QE 2.0 when Bernanke's wellhead bursts and fast money will be flowing uncontrollably!
I hauled in topsoil to a piece of my property that I'm trying to boost it's growing potential a bit. Apon testing, it was severely deficient in potash. Maybe all the fertilizer I bought last month is affecting the price.
Just wait till the ATF comes calling.
Ammonium Nitrate Bitches!
Wood ashes.
You shouldn't put carbonates on the ground. Carbons bad and contributes to global warming. All you people trying to grow stuff are going to kill us. You should pay carbon credits and stuff.
Keep watching. I just watched AG today. These people are going to have a psychotic break any day now. The CEO of John Deer said the recession is over. LOL
OT: the wankers at the SEC/DOJ nail a small-fry. Great to know that not even the smallest violation goes unpunished, isn't it? (/snark)
http://www.bloomberg.com/apps/news?pid=20601087&sid=amWg76D9X2zs&pos=5
True, but only the top executives have immunity from prosecution.
But did they check his pockets for gold coated tungsten?
If the market is set to "technically" crash, expect another false flag attack/catastrophe to;
Might not need a false flag this time, there are a couple of real catastrophes going on at the moment.
Yawn, wake me up when the Dow hits 20,000!
20K in 20 years it is, for you *and* Rip Van Wanger.
P.S. There is a snooze button.
Hits it on the way up, or on the way down?
Leo, are you sure you are Greek? Your are as stubborn as a Turk.
LOL
You've set Leo off now. Just like a taxi driver once said to me. Israeli's, Palestinians, ahhh all the same.
For that, DOW 40,000.
Yawn, wake me up when the Dow hits 20,000!
Dude.... Leo, really? Good God man, there's no way.
There is no debt, no bond, no note, no bill, no stock market, no forex market, and no commodity market that cannot be manipulated with enough money.
The Europeans have been begging for a weaker Euro for years. Done. The west has been begging for lower oil prices for years. Done. Lower interest rates? Done. The debt? Don't worry about, we'll write off each others debt and make the banks whole with new money.
Just let me know when my Monopoly(tm) money is worth something again.
I hate fiat currency but, let me take the "pro" side of the cash is king argument for a moment. You can buy more stock now than you could just a few years ago with the same amount of cash. You can buy more house now than you could just a few years ago with the same amount of cash, and, get a lower interest rate. Energy prices are coming down. Food prices have been stable (yes I go grocery shopping weekly). In fact, Coke and Pepsi cost just about the same now as they did in the late 1980s (back when I was shopping just out of college). Electronic prices are way down. I can replace my car today for maybe 10% more than the first one I bought in 2001. What's really up are industrial commodities (thank you China) and precious metals (global financial crisis).
What has changed is that our global financial system is falling apart, and confidence is evaporating, and with loss of confidence saving increases, borrowing decreases, deficits increase, and recessions turn into a depression (I'd say we're in a depression now, only they saved the banks).
With the private sector in such a pinch, the only way to stave off deflation is to increase the amount of government checks to individuals and support to the states and local governments that are running out of money. Some people say this Federal money printing thrown out in this way will merely prolong the crisis, some people don't.
I don't know.
but historicaly, we have seen that the more the gouv. put his dirty hands in the market, the worse the result... we have some trash to get out now and the more we are waiting the more it stinks in the appartment
You started out so Zen-like! There is no mind, and no mirror!
leo, your the best.when 20,000 dow arrives, $20,000 gold will be here to. time to wake up. A 10$ cup of cofee wll also be common place at that time.
A 10$ cup of cofee wll also be common place at that time. just went long shoes and coffee !!!!!!!!!!!!!!!!!!!!
its easy to spend 5 or 6 GBP sterling on one of those fancy Starbucks coffees, in London anyway. $10 coffee is here now, all you need to do is wake up and smell it.
Can this pig bounce off 1042-44 twice in one week? Hasn't done but one bounce per support level to here.
It's a little busy slamming into 1090 again...1042 is going to have to wait. Either the claim number will suck wind and we'll lose a lot of this ground and be closer to where this started or it will be "better" and it will give them the excuse they need to power jam the futures through 1090.
The whole thing is ridiculous but feels a lot like a couple of years ago.
$10 coffee sounds extreme at first... then you realize that we are not all that far from that 'extreme' level right now. And the real crack-up is still in front of us...
*sigh*
Money McBags is finally throwing in the towel but weeks too late. The market is more broken than a epididymitis sufferer's nut.
http://whengeniusprevailed.blogspot.com/2010/05/52610-midevening-report-...
Seriously!!!
Who the fk makes their trading decisions based on commentary, be that an article one reads or a TV clip? If you're paying attention to the TV, you're not paying attention to the chart, and everyone, and I mean everyone is trading the chart. ZH stop even mentioning this nonsense.
Dude you are not paying attention tot he chart!!
On 8th Feb 2010, Dow lasted barely a day below 10k on closing basis. Next day it just turned around and kept making new highs not to close below this psychological 10k level until today 26th May 2010. Will it crush the bears once again tomorrow under the weight of free fed money and HTF algos? Or will this time it will be different?
http://tinyurl.com/32ej2s4
vs-trader.blogspot.com
looks like it worked as it did in Feb 2010. Happy days for bulls?
vs-trader.blogspot.com
Very interesting action today. You could see SPY getting pushed back on every dime of improvement, once the early ramp disappeared. So they let the air out and sent SPY back to round one (+30c) for another attempt, which succeeded -- for a while. This is not the market action we've been seeing for the last x months. There are obviously _very real_ sellers out there, because it's apparent that the traders were going for an easy push today (we're oversold, CNBC talking head sentiment, etc.). In conclusion, today's conclusion seems really bearish.
+1 , at this pivot point ... the bulls need to show some more momentum... now they are getting short on time to show this... the more time we stay in this range the more its bearish
In completely unrelated news, the UK revealed that they have around 225 Nukes.
After the USA revealed they had around 5300, is everyone counting their poker chips?
usa has 5,113
Does it really matter?
It seems the Fast Money momo players knew that a bear trap was being set up at the close on Wed...almost shorted last night...but didn't because its time for Ben-Timmy to play crush the shorts again.