Dow drops 241 points in 90 minutes

[ricket]

Correction imminent? Has the sell-off began?

Pretty quick turnaround starting around 10AM EST.

http://www.google.com/finance?q=INDEXDJX:.DJI

[Kadriana]

Re: Dow drops 241 points in 90 minutes

You know there will be the mysterious bounce the last 30 min. of trading and it will barely close down.

[flintlock]

Re: Dow drops 241 points in 90 minutes

Been a while since that's happened hasn't it?

[jk]

Re: Dow drops 241 points in 90 minutes

what's interesting to me is that, with the dow down 190.90 at this moment, oil is down only 0.98 [1.4%], and gold is down only 1.60 [0.17%]

[jpatter666]

Re: Dow drops 241 points in 90 minutes

what's interesting to me is that, with the dow down 190.90 at this moment, oil is down only 0.98 [1.4%], and gold is down only 1.60 [0.17%]

And TLT up only 0.02%. No rush into trash...er...treasuries.

[ricket]

Re: Dow drops 241 points in 90 minutes

what's interesting to me is that, with the dow down 190.90 at this moment, oil is down only 0.98 [1.4%], and gold is down only 1.60 [0.17%]

obviously it's deflation... oh wait...

;)

[rabot10]

Re: Dow drops 241 points in 90 minutes

Gold and silver are now UP - something is very wrong. I don't like this much change it makes me nervous.

[jpatter666]

Re: Dow drops 241 points in 90 minutes

Gold and silver are now UP - something is very wrong. I don't like this much change it makes me nervous.

Yep. We were smelling something in the air as well which let us to buy more PMs and start fleeing our 401K mutual funds.

I *really* dislike being this cash heavy though.....

[vinoveri]

Re: Dow drops 241 points in 90 minutes

You know there will be the mysterious bounce the last 30 min. of trading and it will barely close down.

"smart money" buying the dips you know. those money managers have to put that end of the month 401k money to work somehow:rolleyes:

[charliebrown]

Re: Dow drops 241 points in 90 minutes

nice lock! got one just like it

[charliebrown]

Re: Dow drops 241 points in 90 minutes

something is weird here. I haven't seen this pattern for months. PM's up, stocks down, oil down, treasuries not screaming up. SHY is down a bit.
There is some positive mo on SHY, i think i'm going to move a bit of cash into it.

[Jim Nickerson]

Re: Dow drops 241 points in 90 minutes

Yep. We were smelling something in the air as well which let us to buy more PMs and start fleeing our 401K mutual funds.

I *really* dislike being this cash heavy though.....

What's not to like about US$ cash?

http://jessescrossroadscafe.blogspot...lationary.html
01 September 2009

Hedge Funds Betting on a Deflationary Market Collapse

The observations herein regarding the nature of this stock market rally are quite in parallel with our own.

Buying the dollar to play the debt deflation trade may also be a good one in the short run, especially if leveraged foreign punters have to quickly raise cash to cover bad bets made in the US markets.

However we would have to add that this scenario assumes no black swans with regards to the heavy overhang of US dollars being held by overseas central banks.

If we were in such a position, we would be selling the rallies, given the huge amount dollars on the books.

“Despite every effort by government in North America and Europe to avoid deflation,” Horseman wrote, “the current numbers suggest they are losing the battle.”

http://www.bloomberg.com/apps/news?p...d=auGWGWlnohNo

[ThePythonicCow]

Re: Dow drops 241 points in 90 minutes

something is weird here. I haven't seen this pattern for months. PM's up, stocks down, oil down, treasuries not screaming up. SHY is down a bit.
There is some positive mo on SHY, i think i'm going to move a bit of cash into it.

I don't see PM uniformly up. I see silver up, but gold volatile with no major trend. The $VIX so called volatility index jumped up. Some low-ball limit buy orders I placed last week on the FXE Euro ETF have triggered, so Euro down and dollar up.

[ThePythonicCow]

Re: Dow drops 241 points in 90 minutes

something is weird here. I haven't seen this pattern for months.

On the post http://www.zerohedge.com/article/coordinated-derisking, Zerohedge says of today's market that it represents all markets reducing risk.

It appears the market now only acts sensibly on big volume (SPY volume now is 73 million shares above average) selloff days.
The chart below is what one would expect, and what one would never see over the past 6 months.

[jk]

Re: Dow drops 241 points in 90 minutes

gold's stability in today's action seems really telling. oil is now down a bit more than equities, but gold is up a bit. if this is a flight from risk, the dollar is rising against most things, but not gold. a gold ratchet?