Stock Market: The Thread

[Schildog]

From your link: The last time the S&P jumped more than 3% and finished down was at the height of the financial crisis in 2008.

 

Tonight will be interesting in China. The government lowered interest rates there in a desperate move to stop the bleeding. If they keep crashing, then look out below!

 

it's not 2008 ffs. 

[fan_since79]

Things looked really good earlier this evening. Asia, including China, was soaring and U.S. futures were way up.

 

Now Hong Kong is back in the red, and futures have retreated.

 

We'll see what happens tomorrow. It's anyone's guess.

[gotbeer]

It's like some force is trying to prop up the market.  Yet the market wants to retreat.  It's amazing the swings the last few days. 

[Jay]

There are definitely "forces" trying to prop up markets.

 

However the U.S. economy is in much better shape than it was in 2008 during the last major crash.

 

The banks are in better shape, there's no real estate bubble as there was in 2008.

 

Not the same situation.

 

China is crumbling though and the Chinese central bank is trying to prop up it's market.

 

So investors are running away from Chinese stocks.  That money should start to flow into U.S. stocks once the dust settles.

[gotbeer]

I don't know about the real estate bubble.  At least in my area, prices have skyrocketted past the 2008 amounts.  And these houses aren't worth what people are paying.  

[Lhalo]

Jay's right that the situation is different. The problem is that the Fed has kept rates at historic lows for a very long time. I want to see how this show runs without them artificially propping up the market.

[Jay]

I don't know about the real estate bubble.  At least in my area, prices have skyrocketted past the 2008 amounts.  And these houses aren't worth what people are paying.  

 

The prices are back up but those properties are not under water like they were in 2008 when banks would lend to just anyone.

[Catwhoshatinthehat]

Where I'm at real estate prices might be up to 2008 levels but they aren't up to 2006 levels which were the highs.  I expect prices to come down once the fed starts raising rates and mortgage rates increase but I haven't seen anything that leads me to beleive the same type of subprime lending and securitization is occurring that we saw before the crash, at least not to the same degree.    

[Brandon]

The amount of comps I do on a daily basis, they are nowhere near 2008 levels. They have gone up, but on average most people are break even, quite a few still upside down.

What you're seeing now is all the interest only and 10 year ARMs from 2005 now readjusting and people have to walk away if they can't refinance.

[fan_since79]

The bulls are back, at least for today.

 

Dow up 534 points with half-hour remaining.

 

But who knows what will happen in the final ten minutes. LOL. Crazy market.

[Jay]

Could be the bottom is in.

 

This oversold bounce could be followed by a less-intense low.  At least that's what I'm looking for as a buy signal.

 

We'll see.

[Schildog]

anyone trade options?

[mrwicked]

RE prices by me are doing well very.

But it's not propped up by shady lending.

Just supply and demand.

It's pretty cool.

I would expect it to simmer down a bit though when the impending app bubble bursts.

 

Edited August 26, 2015 by mrwicked

[Lhalo]

It's propped up by near zero interest rates.

[fan_since79]

anyone trade options?

 

My brother does, and made a good deal of money during the market meltdown in 2008. I stay far away from them.

[HaloFan85]

http://www.zerohedge.com/news/2015-08-26/dow-follows-biggest-crash-lehman-third-biggest-one-day-surge-ever-china-dumps-treasu

 

Just be sure to read through the comments section at the bottom.

[Jay]

http://www.zerohedge.com/news/2015-08-26/dow-follows-biggest-crash-lehman-third-biggest-one-day-surge-ever-china-dumps-treasu

 

Just be sure to read through the comments section at the bottom.

 

why?

[HaloFan85]

Because they're funny as hell and plus they know their shit about what's going on.

[fan_since79]

Dow was up 369 points today, and futures are soaring this afternoon, up over 400.

 

Bull market not over?

[halobob]

Market is so boring today.

[Lhalo]

Economic data out of China has world markets in the red again. Dow futures down over 400 points.

[fan_since79]

We're going to get slammed today.

 

People just need to hold on. Not the time to panic and sell everything, but portfolios can always be trimmed a bit.

[gotbeer]

We're going to get slammed today.

 

People just need to hold on. Not the time to panic and sell everything, but portfolios can always be trimmed a bit.

 

Trimmed of China stock.   

[Spirit]

I'm excited.  Going to get my ESPP shares at a super low price. 

[Jay]

I expect to see last week's low tested again.  Maybe not today but sometime in the next few weeks.

 

We might see a bounce tomorrow from today's sell-off.  But I still expect to revisit 15,666 on the Dow.

 

That will be the buy signal for long-term investors IMO.