stock futures in free fall

[rdking647]

dow futures down 320 points. dropped 100 points in about 10 minutes

china down over 8% at one point

its going to be an interesting monday

[Historic NY]

1. I'm scared...........

I can't believe this crap is happening again.

[Renew Deal]

30. It's going to happen again

It's the nature of the system

[Javaman]

40. and again and again and again...nt

[Recursion]

35. The Dow falling is not particularly a bad thing

This isn't (yet) something like 2008. This is people moving money from stocks into bonds.

[Warpy]

2. If we're lucky, it'll be a correction turning into an overcorrection

If we're not lucky, a few fat cats at the top are in full panic and will fuck everything up.

The hosing the commodities market has taken across the board in the last few months has looked eerily like 2008. Other stuff doesn't look like 2008.

[still_one]

3. I suspect we are close to capitulation. In fact it may start to stabilize on Monday.

[GummyBearz]

11. Capitulation after a 10% drop from peak?

What on earth are you talking about? A general definition of a bear market is 20% down from peak across a wide range of index's. Were not even there yet... capitulation is what we saw briefly in 08 when the Dow was over 50% down from peak.

[reformist2]

15. There will be a bounce back up tomorrow, no question. There will be more drops to come, though.

[jonno99]

24. My guess too - we'll see how we do...nt

[GummyBearz]

39. That bounce went 1000 points in the wrong way

I did buy a couple stocks early this morning... i think they will be short term in the red, but its my retirement fund. 30 years from now they should do well

[still_one]

17. What am I talking about is panic selling, and that is what was happening Friday. I suspect it will

start off that way on Monday, and then the shorts will start to cover, and the big boys will come in and start to stabilize it.

Wether this is the start of a bear market I don't know, but panic selling is what was occurring, and that is capitulation

[GummyBearz]

18. Shorts covering could happen

But I think a lot of the sell off the last 2 trading days has been due to large trading desks selling off their over priced US stocks to cover their losses in China. If China is down 8% tonight like the OP says, I don't think you will see any stabilization monday.

Capitulation is when the majority of people (including 401k owners) pull out of the market. That is not happening at this point... but I agree with you, if there were a lot of crystal ball readers who went short on Wednesday last week there could be a short covering rally tomorrow.

[rdking647]

20. with all the talk about the chinese collapse its only back to where it began the year

[GummyBearz]

22. And those who bought between last year and now (ie the peak) are hurting

Along with those who bought options or on the margin. Call options will be on sale tomorrow

[still_one]

21. From what I understand a lot of Chinese who are in the market are margined up to their neck. I also

suspect that has also contributed to some of the sell off because they are forced to meet their margin requirements:

http://www.bloomberg.com/news/articles/2015-06-15/china-s-next-bear-market-seen-in-358-billion-of-margin-loans

I do agree with your observation, that it wasn't "main street" involved in the selling on Friday

[Quackers]

4. Kick

[a kennedy]

5. D*mn.

[Recursion]

6. Everybody thinks the Fed is going to raise rates in September

So fixed income looks comparatively more attractive than equities right now.

[Quackers]

8. I still think they'll hold off for a bit.

As soon as they announce that, hang on for the ride.

[Recursion]

16. Me too; a lot of brokers will have egg on their face on September 18th (nt)

[GummyBearz]

19. The fed backed themselves into a corner

They inflated bubble after bubble to reduce the effect of the previous bubble bursting. Now with a bubble in both stocks, bonds, and maybe(?) real estate at the same time, along with an already zero interest rate policy and ineffective QE, they are effectively out of bullets to shoot. Hell they ran out of those years ago and have been using a sling shot but are now out of rocks. The easiest thing is a negative interest rate policy. Step by step we are following Japan's example into their "lost decade" (I think its more like 2+ decades now).

Thanks federal reserve, thanks for all your help

[Agschmid]

27. Me too.

[joshcryer]

33. I doubt they'll raise rates.

They always say they will but never do.

[Recursion]

34. Well they sure as hell won't after today (nt)

[joshcryer]

36. Heh

True that.

[Liberal_in_LA]

7. thanks.. hope the market doesn't go crazy tomorrow

[rdking647]

9. low was down 405

i put low ball orders in to buy down 500,750 and 1000

[Newsjock]

14. Down 419 now

About to head below 16,000.

[greytdemocrat]

32. Down over 600...

[BillZBubb]

10. The market has enjoyed a pretty steady rise the past few years.

We are overdue for a correction given the historical pattern. The Chinese market is in worse shape. It is due for a big correction and that has probably started this summer.

Fundamentally, though, nothing much has changed. Chinese economic growth is coming back to earth. 10% GDP growth per year is not sustainable. Their market has to adjust to that reality. It may look scary, but given the huge run up of the past several years, it isn't.

No reason to panic.

[seveneyes]

12. Time to load the shotgun

[reformist2]

13. It is kind of amusing how buyers chicken out when the market drops this fast.

And then at the same time, you suddenly have people selling that weren't even thinking about it 5 days ago.

So weird.

[rdking647]

23. japan now down 5%

[Agschmid]

26. Yup.

[rdking647]

28. dow now down 500

[6chars]

29. I plan to sell at the bottom like in 2009

[Fearless]

31. Umm... You should buy at the bottom...

Buy low, sell high. Of course, if only it were that simple.

[GliderGuider]

38. -852 @ 9:30 EDT... nt