Stocks: Market Crash Looming

[r3volution 3.0]

-1500

 

[r3volution 3.0]

Back to "only" -1000

The teleprompter-readers' effort to talk investors off the cliff must have worked.

 

[Madison320]

DJIA -750 (off a low of -800 minutes ago)

What's especially interesting is that gold and silver are barely down and bonds are barely up.

I'm looking for the "quad". Dow down, dollar index down, gold up and bond rates up.

I'm surprised the headlines are not blaming this on Trump. It's just a matter time if it keeps dropping. Of course Trump walked right into the trap by taking credit for the bubble on the way up. What a maroon! It's not actually his fault but he stupidly took ownership of it.

 

[r3volution 3.0]

I'm looking for the "quad". Dow down, dollar index down, gold up and bond rates up.

Yep, aka the four horsemen of the apocalypse for this economy.

I think that's coming sooner than later.

Gold and silver being up 0.5% and 1% today, with this kind of selloff, is already pretty remarkable.

And bonds were down in the initial sell-off, only got a bid when the dow really plunged.

 

[r3volution 3.0]

I'm looking for the "quad". Dow down, dollar index down, gold up and bond rates up.

I'm surprised the headlines are not blaming this on Trump. It's just a matter time if it keeps dropping. Of course Trump walked right into the trap by taking credit for the bubble on the way up. What a maroon! It's not actually his fault but he stupidly took ownership of it.

Well, it's been building for a long time, but it is his fault in that he's just continuing the policies that created this situation, esp. re spending.

 

[r3volution 3.0]

Dropping again into the close...

 

[r3volution 3.0]

Talking heads talking about how rising rates (which caused this sell-off) are great, a sign of economic health, etc.

...course they fail to appreciate that this entire post-2008 economy is build on cheap money and will absolutely crater without it.

 

[Jan2017]

-1500

Yeah, heard intraday down as much as -1500 : close down -1177 (?)

 

[r3volution 3.0]

Strong selling into the close, -1175 (-4.6%) final, the largest point drop in history by far.

Yeah, heard intraday down as much as -1500 : close down -1177 (?)

nearly -1600

EDIT: -1597 to be precise (beat the former record intraday drop by nearly 600 points)

 

[oyarde]

I expect gold and silver will get a little boost on the Asian market .

 

[Krugminator2]

I was too optimistic too quickly. A gap down tomorrow would be a gift from the gods for someone sitting on cash. The VIX has only been this high once in the last 5 years. And this is sharpest spike.

Buying this kind of fear tends to be a good bet.

 

[Madison320]

Well, it's been building for a long time, but it is his fault in that he's just continuing the policies that created this situation, esp. re spending.

I agree.

 

[Madison320]

Talking heads talking about how rising rates (which caused this sell-off) are great, a sign of economic health, etc.

...course they fail to appreciate that this entire post-2008 economy is build on cheap money and will absolutely crater without it.

In the real world rising rates are due to an increased risk of default.

 

[r3volution 3.0]

In the real world rising rates are due to an increased risk of default.

I'd be surprised if big money investors were thinking about an actual default on treasuries at this point (though that day may come).

More about supply, falling dollar, inflation, IMO.

 

[Madison320]

I'd be surprised if big money investors were thinking about an actual default on treasuries at this point (though that day may come).

More about supply, falling dollar, inflation, IMO.

Defaulting thru inflation is just the dishonest way of defaulting. Really with the bigger currencies it's the only way they're ever going to default.

 

[devil21]

Just the NYSE alone has a market cap of 21 trillion and trades about 200 billion a day. They'd probably have to have hundreds of billions of dollars to throw away to keep the markets from a big sell off. Plus it would be a huge risk. It would take a lot of people to pull it off and if the public found out either the markets or the dollar would crash to zero.

I'm not saying the PPT isn't trying to stabilize the markets, I'm just saying they can only have so much influence. If it were really possible to keep the markets constantly going up without an equal loss in the value of the currency every country would be rich and no one would have to work.

Dude, the Fed can literally make "money" of any nominal amount appear out of thin air. Any amount. I don't care what the cap of various markets is. All that money originated from the Fed in the first place. They can double it overnight if they wish. Having said that, you don't need to move the entire market cap to manipulate the markets on a day-to-day basis.

 

[Madison320]

I've been checking in on the conservative talk shows to see how they react. They've all been drinking the Trump kool-aid and bragging about how great the economy is under Trump. I heard Limbaugh say last week "we're going to see unprecedented, explosive growth in the economy."

So far not one guy has mentioned the crash.

 

[devil21]

Hot damn that was fun to watch! Anybody see a PPT around here at 3pm or so? It doesn't get anymore obvious than that. We would have triggered circuit breakers if not for the PPT TWICE today.

If this keeps up and the FRN based stock markets completely deflate, my handful of TVIX will be worth millions of worthless FRNs. Just spitballin' here but wouldn't it be amazing if only VOL based issues ended up with all the "money"?

Various brokers shut down too. When everyone is running for the exits, the little guy will be locked out. Today was the warning. Same as bitcoin!

I've been checking in on the conservative talk shows to see how they react. They've all been drinking the Trump kool-aid and bragging about how great the economy is under Trump. I heard Limbaugh say last week "we're going to see unprecedented, explosive growth in the economy."

So far not one guy has mentioned the crash.

Why do you think they've been pumping all this Trump soap opera drama??? So they don't have to talk about the financial markets and "money".

 

[Madison320]

Dude, the Fed can literally make "money" of any nominal amount appear out of thin air. Any amount. I don't care what the cap of various markets is. All that money originated from the Fed in the first place. They can double it overnight if they wish. Having said that, you don't need to move the entire market cap to manipulate the markets on a day-to-day basis.

If they secretly used printed money to prop up the stock market, we'd eventually get high inflation. If the public found out about it we'd get hyper inflation.

I wondered the same thing, but when I look at Janet Yellen or Ben Bernanke I just don't see them being outright criminals, they look more like misled academics who believe in a failed theory.

If you're right why would they ever let the markets crash?

 

[Madison320]

Why do you think they've been pumping all this Trump soap opera drama??? So they don't have to talk about the financial markets and "money".

They won't be able to ignore it for much longer. I can't wait to hear the spin!