Black Monday - Apparently

michaels

My stock market investment is for my pension which is at least 10 years away. I am investing a lot this year and next so am very happy to see the market as low as possible for that period so please keep on panicking

Graham_Devon

michaels wrote: »

My stock market investment is for my pension which is at least 10 years away. I am investing a lot this year and next so am very happy to see the market as low as possible for that period so please keep on panicking

Panicking? At the rate things are going, the DOW could end the day up!

Something has surely have got to have happened? FTSE down by 7% at one point and now racing towards a -1.5 / -2% close? (could of course reverse in an instant).

Graham_Devon

Apparently the rally is due to PPT.

What's PPT?

michaels

Don't forget that the us is one of the least open economies in the world. Ie what happens globally will have less effect on the us than anywhere else and falls in commodity prices are probably broadly earnings enhancing unlike the ftse.

mayonnaise

Graham_Devon wrote: »

Apparently the rally is due to PPT.

What's PPT?

A Powerpoint Presentation, Graham.

Graham_Devon

mayonnaise wrote: »

A Powerpoint Presentation, Graham.

PPS if you do it the correct way.

Anyway, seems Zerohedge have some background stuff on this turnaround rally.

http://www.zerohedge.com/news/2015-08-24/meanwhile-beneath-surface-market-liquidity-worse-during-flash-crash

Seems, if that is correct, the "Central Bank Incentive Programme" has kicked in in order to bring stability back to the markets.

Also seems that it stopped people selling ???

mystic_trev

Will we have a Brown Tuesday?

chewmylegoff

Graham_Devon wrote: »

Well, quite a remarkable recovery going on now!

It was reported yesterday that the Bank of England has just shoved a load more money into its defined benefit pension scheme in order to deal with rising costs.

No doubt this was actually just a scheme to ensure they could buy more VOD.LN at 3pm today in a cunning momentum ignition ploy.

The reptiles walk among us.

chewmylegoff

Graham_Devon wrote: »

PPS if you do it the correct way.

Anyway, seems Zerohedge have some background stuff on this turnaround rally.

http://www.zerohedge.com/news/2015-08-24/meanwhile-beneath-surface-market-liquidity-worse-during-flash-crash

Seems, if that is correct, the "Central Bank Incentive Programme" has kicked in in order to bring stability back to the markets.

Also seems that it stopped people selling ???

That isn't what that link (which refers only to one specific exchange where certain futures contracts are traded in the us) says at all. The central bank incentive programme is a specific rebate which reduces the cost of trades for central banks on the CME. It isn't some kind of lizard secret trading thing. The link is suggesting that prices were so volatile that trading kept getting suspended so buyers could not be effectively matched with sellers by the exchange's trade matching engine. This is a perfectly normal and reasonable control designed to prevent ludicrous price spikes caused by people making catastrophic trading errors or to prevent sudden price slides caused by algorythyms going wrong.

Plus I would be very interested in your explanation of how a market can stop people from selling without also stopping them from buying....

wotsthat

Crashy_Time wrote: »

Will be quite funny to watch when this sort of panic translates to house prices. Bloomberg commenting today that social media spreads panic much quicker than the days when the average punter just heard about market crashes on the tea time news. Interesting that the thread on HPC discussing this has about 300 people viewing it, this really is a backwater over here.

Wow! If the 20 people from this forum and the 300 viewers (:)) from HPC got together we could dominate the the world discussion about house prices. Move over Twitter.