Black Monday - Apparently

Graham_Devon

chewmylegoff wrote: »

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

I've been quite clear that I don't understand all this and am watching on as a bystander. I'm asking questions because I'm interested.

I don't need your condescending attitude. It doesn't answer anything.

I'm interested to know how the DOW can open with it's largest drop on record and then suddenly shoot up and regain all the losses from nothing. No positive news. Nothing to sway the China stuff.. It's confused not only me, but everyone that says anything about it. So surely there must be something going on.

The DOW increasing 1,000 points in a day is staggering. To regain 1,000 points in this envionrment when every other index out there has dropped 3-10% is simply bizzare. it's been referenced that this is more reminicent of an AIM stock.

MARTYM8`

Graham_Devon wrote: »

I've been quite clear that I don't understand all this and am watching on as a bystander. I'm asking questions because I'm interested.

I don't need your condescending attitude. It doesn't answer anything.

I'm interested to know how the DOW can open with it's largest drop on record and then suddenly shoot up and regain all the losses from nothing. No positive news. Nothing to sway the China stuff.. It's confused not only me, but everyone that says anything about it. So surely there must be something going on.

The DOW increasing 1,000 points in a day is staggering. To regain 1,000 points in this envionrment when every other index out there has dropped 3-10% is simply bizzare. it's been referenced that this is more reminicent of an AIM stock.

I presume the plunge protection teams - via the central banks dived in to prop it all up.

With the stock market these days its as much about cheap central bank money flooding in via QE and sentiment - than actual fundamentals. Its no longer a real market - its effectively an arm of governments and central banks. A lot like the housing market in our major world cities.

Graham_Devon

MARTYM8` wrote: »

I presume the plunge protection teams - via the central banks dived in to prop it all up.

With the stock market these days its as much about cheap central bank money flooding in via QE and sentiment - than actual fundamentals. Its no longer a real market - its effectively an arm of governments and central banks. A lot like the housing market in our major world cities.

Is that what PPT's are? Plunge Protection Teams? Someone wrote it on a comment and thought it was tounge in cheek!!

wotsthat

Gordon Brown's former special adviser seems to have lost the plot.

https://mobile.twitter.com/dpmcbride

Advice on the looming crash, No.1: get hard cash in a safe place now; don't assume banks & cashpoints will be open, or bank cards will work.

Crash advice No.2: do you have enough bottled water, tinned goods & other essentials at home to live a month indoors? If not, get shopping.

Crash advice No.3: agree a rally point with your loved ones in case transport and communication gets cut off; somewhere you can all head to.

chewmylegoff

Graham_Devon wrote: »

I've been quite clear that I don't understand all this and am watching on as a bystander. I'm asking questions because I'm interested.

I don't need your condescending attitude. It doesn't answer anything.

I'm interested to know how the DOW can open with it's largest drop on record and then suddenly shoot up and regain all the losses from nothing. No positive news. Nothing to sway the China stuff.. It's confused not only me, but everyone that says anything about it. So surely there must be something going on.

The DOW increasing 1,000 points in a day is staggering. To regain 1,000 points in this envionrment when every other index out there has dropped 3-10% is simply bizzare. it's been referenced that this is more reminicent of an AIM stock.

It opens down because lots of people think that the price is going to fall and want to sell so it drives the market down. Then, when the market falls, lots of people think that the market has been oversold and will go up, driving the price back up again. Because the market is all over the place lots of people want nothing to do with it, so liquidity falls and the price movements intensify. There isn't a lot more too it apart from panic, fear and greed.

Thrugelmir

Graham_Devon wrote: »

I'm interested to know how the DOW can open with it's largest drop on record and then suddenly shoot up and regain all the losses from nothing.

For the same reason that house prices fluctuate. Takes two parties to conduct a trade. If no one is selling. There's no stock to buy.

chewmylegoff

Graham_Devon wrote: »

Is that what PPT's are? Plunge Protection Teams? Someone wrote it on a comment and thought it was tounge in cheek!!

Probably, but that doesn't mean they exist. Central banks are quite open about intervening in the markets. There isn't much point secretly trying to stabilise markets by buying every single asset under the sun. It's a lot cheaper to tell everyone you're doing it and buy a few bonds.

MARTYM8`

I think the plunge protection teams must have gone home.:D

The Dow is now back down nearly 700 points - one of its most volatile days ever. And still an hour left.

http://www.cnbc.com/

Thrugelmir

MARTYM8` wrote: »

I think the plunge protection teams must have gone home.:D

The Dow is now back down nearly 700 points - one of its most volatile days ever. And still an hour left.

http://www.cnbc.com/

Less affected than European markets. Europe's exports to China are the concern. Sales of Bentleys and Rolls were down 12% in the first 6 months of the year. Devalued Yuan isn't going to help.

mystic_trev

IG FTSE Futures say opening -90 tomorrow