DOW down 223 points in 1st hour of trading

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shizumaru,





Valuations on Wall Street depend greatly on the growth rate of earnings used in the analysis. If you believe we will not go into a recession, stocks are undervalued. If you believe we are in for a hard landing, stocks are overvalued.





That being said, I don't pay much attention to that when trading. I think there is a good chance stocks will roll over when they hit the 200 Day simple moving average because I know traders will be focused on this technical level. There will be a lot of people going short there. If the funds don't agree and start buying there instead, you could see a continuation of a short squeeze rally. If the funds start selling at this level (which they would do if they believe in the recession), then the market will roll over and make new lows. Today's prices may be the highest we see for another year if the economy turns bad.
 
Massive losses for home or mortgage related today. Just a small sample.

BZH Bezer Homes 8%. LEN Lennar 11%. FNM Fanny 25%. CFC CountryFried 14%. KBH KB Homes 9%.

That is more than correction type selling for a day. Its almost what could be discribed as "Panic Selling".

Some serious "Stop Loss" activity is taking root.
 
Thanksgiving week is, what I like to call "intern" week. The real traders are in Barbados and the Hamptons, leaving the interns to run the show. Big swings always happen this week. Panic buttons start flashing red and the selling begins. If you are a trader, you love this week.
 
<p>Muzie</p>

<p>CFC=CountryWide</p>

<p>CountryWide+Mozillo=CountryFried</p>

<p><img title="two-sided tshirt - side two" style="MARGIN: 5px" alt="" src="http://ml-implode.com/img/cfs2.png" /></p>

<p>The price of a Bucket is Now $ 10.00. </p>

<p> </p>

<p> </p>
 
<p>I think we're in recession. People are beginning to realized this and the stock market looks like it's heading way down. I have a feeling that the DOW is heading towards 11500 sometime next year so I moved all my eggs into Fixed earning 5% last month.</p>

<p>I will be opening an account with American Funds. I get NAV value so I dont have to pay the sales %. What mutual fund from American Funds should I be investing in? In recession times.</p>

<p>Thanks</p>
 
If you believe we are headed into an inflationary environment, then buy gold, silver and a shovel. If you believe that the vaporization of capital from toxic loans will exceed Benny and the Inkjets ability to print money thus creating a deflationary environment, buy ammunition.
 
<p>60s and 70s: What if they gave a war and nobody came.</p>

<p>07-?s. What if they injected liquidity and nobody borrowed?</p>

<p>This may actually happen. I don't know anybody who plans to spend a whole lot on Christmas.</p>

<p>The chain stores are advertising that they are opening at 4-6 in the morning so people can shop, shop, shop on "Black Friday". I just hope it's not "Black Friday" because the stock mkt tanks.</p>
 
Wow! Look at that Dow. I was thinking about going back to trading GLD and SLV because it seemed all the easy money had been made shorting the financials, but with Abu Dhabi, (sp?), trying to catch the biggest knife I have ever heard of, it looks like the financials are showing some good opportunity.
 
I agree. Just a day of this squeeze on the shorts and down we go again. Citi got 7 Billion at 11%. Anymore bad news and we will go down fast tomorrow.
 
horrid consumer confidence.....historic house price drops.....Staples reporting sales decreases.......and the DOW shoots up because C had to borrower7.5 billion from the middle-east. WTF??? Why isn't this a BAD sign. I think you're right tomorrow will be another day in the red.
 
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