"SPLASH CRASH" Global Economy Alarm Bells Ring Wall Street Falls 4% Recession Fears Hammer Stocks
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http://www.StockMarketFunding.com "SPLASH CRASH" Global Economy Alarm Bells Ring Wall Street Falls 4% Recession Fears Hammer Stocks & Commodities. Wall Street Falls Sharply for 4th Day! Gold, silver tumble in broad market sell-off. Most commodities remained under pressure today, pressured by the strength in the dollar and concerns about the status of global economies World stocks and commodities tumbled on Thursday as weak data from China crystallized investor fears of a global recession one day after a grim economic outlook from the U.S. Federal Reserve. Stocks tumbled more than 4 percent and commodities took a beating. The U.S. dollar climbed to a seven-month high against major currencies (^DXY - News) as investors fled risky assets. Weak data from Germany and China helped push investors to the safety of U.S. government bonds, where benchmark yields again touched lows not seen in 60 years. Data showing contraction in China's manufacturing sector for a third straight month helped drive down oil prices by more than 4 percent in London and sent the price of copper to a one-year low. Gold, a traditional safe haven, slumped more than 3 percent as the dollar strengthened. Thursday's market meltdown came after weeks of worries that Europe's debt crisis could freeze the global financial system, and a day after the Federal Reserve disappointed markets with its latest effort to boost the economy by lowering long-term borrowing costs. The Fed also spooked investors with a particularly stark assessment of the U.S. economic outlook. "Global growth worries today are even more prominent than the sovereign crisis, and that's not because sovereign crisis risk has diminished, it's because global growth worries have clearly increased," said Patrick Moonen, equity strategist at ING Investment Management. World stocks as measured by MSCI (^MIWD00000PUS - News) hit a 13-month low and were last down 4.7 percent, bringing the year-to-date loss to 16.3 percent. The decline also came amid concerns that the U.S. government is headed for another budget fight. The House of Representatives unexpectedly defeated a bill that would fund the federal government past September 30. "Here we are, likely facing yet another recession, lacking in confidence, with limited jobs opportunity, hanging our star on a president and Congress that can't agree on what day it is, while offering very little hope of anything meaningful in terms of a jobs solution or a fix for the housing market," said Kevin Giddis, managing director of fixed income at Morgan Keegan in Memphis, Tennessee. The Fed's statement that the U.S. economy faces "significant downside risks" and worry that the U.S. central bank's $400 billion program would be insufficient to jump-start growth brought fears of another global recession to the forefront. Investors, already worried about a possible Greek debt default and the euro zone's intractable debt crisis, see governments unable to respond to the problems. U.S. stocks lost more than 3 percent, extending losses for a fourth straight session, and European shares slumped to a 26-month closing low. The Dow Jones industrial average (DJI:^DJI - News) was down 430.41 points, or 3.87 percent, at 10,694.43. The Standard & Poor's 500 Index (^SPX - News) was down 41.81 points, or 3.58 percent, at 1,124.95. The Nasdaq Composite Index (Nasdaq:^IXIC - News) was down 84.81 points, or 3.34 percent, at 2,453.38. In Europe, the FTSEurofirst 300 (^FTEU3 - News) closed down 4.7 percent. Overnight in Asia, Japan's Nikkei (Osaka:^N225 - News) ended down 2.07 percent. Investors piled into safe-haven assets, sparking a rally in the U.S. currency and government bonds. Data showing that business activity in Germany grew at its weakest pace in more than two years in September and new orders fell for a third month added to the gloom on the global economy. The dollar hit a seven-month high against a basket of major currencies (^DXY - News), and last rose 1.4 percent to 78.453. The euro fell to an eight-month low of $1.3384, its lowest since January, and last fell 0.7 percent to $1.3468. Gains in the dollar sparked a broad retreat in the commodities sector. Spot gold was last around $1,741. U.S. crude futures were down $4.98 at $80.96 a barrel, while Brent futures were $4.40 lower at $105.98 a barrel. Benchmark 10-year notes rose a point, their yields falling to 1.78 percent from 1.87 percent late on Wednesday. The 30-year bond climbed 2-26/32, its yield falling to 2.87 percent - the lowest since January 2009 - from 2.99 percent late on Wednesday. "A big-time asset allocation trade is going on which seeks the safety of U.S. dollar fixed-income Treasury product," said Chris Rupkey, managing director and chief financial economist at Bank of Tokyo-Mitsubishi UFJ in New York. Ten-year German yields hit a record low.
Comments
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Thanks Diane.
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Market .. more like a BIZARRE .. BAZAAR. The stock market might as well be a roulette table in Vegas . at least in Vegas they give you free drinks for being stupid.
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@MrShane737 what...you don't like shady green area free government money sector jobs that enable the private sector to rape the government for free money only to go bankrupt?
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@smfstreet you love buying the dip to sell the rip!
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man... if obama is not removed soon with the rest of the cockroach cronies, then not only will the dollar go down, but national sovereignty will extinguish along with it...
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@StockMarketFunding Excellent points. In terms of the major domestic and international stock indexes I knew sooner or later another crash was inevitable, due to the massive uncontrollable debt on both sides of the Atlantic. For that reasoning long term cheapo puts where the best option and wait. What appears to be a crash-in-stages begins again toward the end of Sept is uncanny. In this general bearish wash out which currency to you view as benefiting? The Canadian Dollar, Swiss Franc?
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@StockMarketFunding Excellent points. In terms of the major domestic and international stock indexes I knew sooner or later another crash was inevitable, due to the massive uncontrollable debt on both sides of the Atlantic. For that reasoning long term cheapo puts where the best option and wait. What appears to be a crash-in-stages begins again toward the end of Sept is uncanny. In this general bearish wash out which currency to you view as benefiting? The Canadian Dollar, Swiss Franc?
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@Geostrategic1 that's what all these weekly options expiration were designed for, to give them the flexibility to sell a ton of options but a bunch for pennies then have them super inflate them on the sell offs to the retail options trader who doesn't have a clue that they're buying an options for $15 that someone bought the day before for $.15....only to see them go worthless more time then not.
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@RAMKING61 you certainly had an great short cover rally on the Nasdaq 100 closing at 2,184.59 off 33.11 points off the low. Nasdaq composite had an equally impressive bump to close at 2,455.67 off 35.44 points off the low. Bounces on the Dow Transportation Index, S&P 500, Dow Jones Industrial Average all weak. Friday is the WEEKLY options expiration, I don't put anything past the bull to try to get some money out of some deflated calls. We'll see what the futures do, hoping for a gap down :-)
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Put options on major domestic and international stock indexes did very well indeed. It would appear the crash-in-stages is underway. Profit-taking-Friday will have more significance in light of the bearish sell off of not only stocks but commodities as well.
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What's your theory/philosophy of the last 15 minutes or so of trading before the closing bell? Truth or gamesmanship? Does the late rise in IWM (or any other particular ETF) indicate anything specific for tomorrow's open?
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@TheStreeser1 nice work man, congrats, you can't go broke taking a profit and we certainly took them as well. Good luck on that AGQ had a nice $3 move off the low
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Fantastic day, took profits in 1/3 of my spxu and placed them in UGL NUGT and AGQ.. Maybe that was stupid , i had to do it however, listening to the voice.
10m 56sLenght
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