Is 12,000 the panic line

[Bigvick]

The DJIA is fast approaching the 12,000 line and if the futures(2/3/08) indicate how the day is going to go it's going below 12,000 today..

Will the markes go into panic mode when the DJIA is below 12,000?

What do you think?

 

[IChooseLiberty]

The DJIA is fast approaching the 12,000 line and if the futures(2/3/08) indicate how the day is going to go it's going below 12,000 today..

Will the markes go into panic mode when the DJIA is below 12,000?

What do you think?

Nope, a panic will begin when a major bank files for bankruptcy OR when there starts being commodity shortages.

We're on the verge of both.

 

[jonahtrainer]

Nope, a panic will begin when a major bank files for bankruptcy OR when there starts being commodity shortages.

We're on the verge of both.

There is some of that.

However, 12,000 is a major line in the sand for the derivatives that hang over this economy like the Sword of Damocles. I am sure the PPT will be along in no time, just like last time, to keep the markets up but their effect will wear off. Only 2 more weeks and we'll get another 50-75 point cut from the Fed. However, the ammunition is almost all gone. Hope everyone has RunToGold because the system is on borrowed time. This is it!

 

[mtmedlin]

Nope, this market needs an adjustment. I wouldnt doubt it will drop below 11,000 before the election and will most likely continue ona mild downturn afterwards. Its not the end of the world, the stock market isnt the greatest indicator of economic strength. Even though I do think were screwed.

 

[Bigvick]

Nope, this market needs an adjustment. I wouldnt doubt it will drop below 11,000 before the election and will most likely continue ona mild downturn afterwards. Its not the end of the world, the stock market isnt the greatest indicator of economic strength. Even though I do think were screwed.

It's not the biggest indicator but..it's the one most widely watched.....by the average person...

What I am worried about is the "panic" that is invetiable to happen...which would make our problem much worse..


*Looks like the futures were right, It dropped another 150points today, not enough to go under 12,000 though...

 

[heartless]

coughcitigroupcough

 

[phill4paul]

coughcitigroupcough

natch! +1

 

[jclay2]

NO, the dow going below 12000 doesn't signal an endless spiral into economic doom. All that will indicate is a bearish outlook on the economy. Usually when the stock market goes down big and everyone is a bear, that is the best time to buy.

 

[scooter]

I was buying stocks when the DOW dropped below 12,000 back in January and I've done quite well since then. We actually need more of this irrational doom and gloom so the markets can get true capitulation. When everyone thinks the economy is about the collapse, that's when you get your bottom.

I don't think we're near that point yet.

 

[Bigvick]

To tell you the truth, I really believe the "Panic" line is the 10000 mark, if the economy falls below that it's gonna crash....

I don't think its unrealistic to say that the economy is going to hover near there within the next year..

I don't see anything to be optimistic about in the US economy, I'm not listening to all the analysts who want you to buy their stock because it's "perfect buying time:"....LOL what a joke/fraud - It's not just a normal downturn.......It has deeper motivations..

 

[Cowlesy]

Commodity shortages you say?



http://www.foodproductiondaily.com/news/ng.asp?n=83100-chatham-house-food-supply-fao

 

[kyleAF]

The Great Depression was a PHENOMENAL time to buy

Anyone been saving??

You might get to buy a Lion's share in some big industries pretty soon... if you just plan well.

 

[kyleAF]

Commodity shortages you say?



http://www.foodproductiondaily.com/news/ng.asp?n=83100-chatham-house-food-supply-fao

This would not be a problem if the world just shifted calories and body weight.

The Americans and British are FAT, while the rest of the world is looking starvation and food riots in the eye (in some places).

America and Britain could do well to get less food for a few months, it would perhaps get people to lose some weight (which might also help with medical costs). The "excess" could go to other countries to prevent people from actually starving.

Of course, everything I just said is completely ridiculous. Americans would be rioting if McDonald's ran out of Big Macs.

 

[mtmedlin]

It's not the biggest indicator but..it's the one most widely watched.....by the average person...

What I am worried about is the "panic" that is invetiable to happen...which would make our problem much worse..


*Looks like the futures were right, It dropped another 150points today, not enough to go under 12,000 though...

Its widely watched and may affect the consumer confidence index but traders arent about to panic. Hell this over inflated economy could lose 2000 points over a year and many stocks would still be overvalued. Its not nearly as bad as in the middle of the . com boom but I think there is still some steam to be let out. A sizable adjustment is in our future and rightly so.

 

[kyleAF]

The report says there is a consensus that commodity prices will remain high over the medium term partly because of the predicted demand / supply imbalance. It speculates that the EU maybe forced into acceptance of supply-boosting GM commodities.

Oh wonderful. Get us dependent on the GM (genetically modified) crops, then monopolize the world food supply.

Sounds like a great plan!!!

 

[kyleAF]

There is some of that.

However, 12,000 is a major line in the sand for the derivatives that hang over this economy like the Sword of Damocles. I am sure the PPT will be along in no time, just like last time, to keep the markets up but their effect will wear off. Only 2 more weeks and we'll get another 50-75 point cut from the Fed. However, the ammunition is almost all gone. Hope everyone has RunToGold because the system is on borrowed time. This is it!

Where are you getting the info for the trigger points having anything to do directly with the DJIA?? Derivatives are set to unwind soon, I think, but I'd be interested in seeing some examples of this particular trigger point.