UPDATED: Dow closes down nearly 1,200 points after plunging more than 1,500 points in volatile...

[DonViejo]

Last edited Mon Feb 5, 2018, 05:37 PM - Edit history (1)

Source: The Washington Post




Dow closes down nearly 1,200 points after plunging more than 1,500 points in volatile trading

By Thomas Heath February 5 at 4:00 PM

The Dow Jones industrial average plunged a heart-stopping 1,500 points in afternoon trading on Monday before gaining back some ground. It finished down 1,175 points, landing at 24,342, or off 4.6 percent — as volatility returned to the stock market with a vengeance after a year of rare tranquility.

The Dow has swung more than 2,100 points in the last two sessions, a decline pushing more than 8 percent and shattering long-term momentum. The index gave up 500 points in a matter of minutes Monday afternoon as Wall Street wags tried to decode events.

One of the big worries is that the Federal Reserve, under new chairman Jerome Powell who was officially sworn in Monday, will accelerate interest rate hikes and slow the economy. A slowing economy would likely turn the bull market toward bearish.

There was also focus on the 10-year Treasury bond, a closely watched harbinger of investor sentiment. The yield’s rise toward 3 percent is widely believed to be a marker for investors to eschew equities for the appetizing stability of bonds.

Read more: https://www.washingtonpost.com/business/economy/dow-drops-more-than-300-at-opening-extending-fridays-losses/2018/02/05/624f72c6-0a80-11e8-8890-372e2047c935_story.html

[Beakybird]

1. -904

[padah513]

2. I bet he's not tweetin' about this!

[uppityperson]

3. Is there a negative % at which they shut for the day? Thank you

[jmowreader]

29. They're called "trading curbs" or "circuit breakers"

https://en.wikipedia.org/wiki/Trading_curb

It's based on the S&P 500 index...

7 percent or 13 percent drops stop trading for 15 minutes.
20 percent stops trading for the day.

[uppityperson]

30. Thank you, I appreciate your taking time for the info and link.

[TexasTowelie]

4. It's down almost 900 points now.

Scratch that, it is down 1,015 now.

[PatSeg]

15. Wow that brings back memories

watching the stock market fall at the end of Bush's presidency.

[bearsfootball516]

5. 960. We're about to shatter 1,000.

[uppityperson]

6. -1043, 4.09%. Nope, -1126

[TexasTowelie]

12. It's down nearly 1,500 points now.

Get Trump to his Twitter machine to stop the carnage.

[lamp_shade]

7. -1033 just now

[Gothmog]

8. Dow down 1193 a minute ago

[uppityperson]

9. 1290, 5%

[bearsfootball516]

10. Holy shit. 1,500

[uppityperson]

11. 1595, 6.25%

[uppityperson]

13. -1100, up a little but wow

[bucolic_frolic]

14. Surprised

what's not mentioned is the palpability that you can feel in the air of uncertainty. Everything is just hanging by a thread, 55% of the population wondering if we're every going to get that AH out of the White House, or if we're going to nuke somebody, and why the market goes up and up and up .... it's been 200 points 3 days a week for three months.

Now we're learning there are consequences for this indecision. Geopolitical consequences, and we're not competing, we're cooperating with our enemies. We're parked in neutral so we can immobilize patriots with Tweets.

It's all coming home to roost. We will be 10 years getting past this.

[Laura PourMeADrink]

18. IMPEACH

[Orrex]

16. Watch talking heads scramble to exonerate Trump for this...

At least as quickly as they would have blamed Obama.

[Laura PourMeADrink]

17. so much for how great it will be to have a business man as president.

[Orrex]

21. LOL! Great point!

That's how the GOP will spin it, right before they demand further tax cuts for the super-wealthy.

"We can be thankful that Donald Trump was at the helm, or this crisis would have been much worse."

[BigmanPigman]

34. THAT is the silver lining in all of this.

I hope the cult/base overreact and think that the bloom is off the rose now. The Moron ties the success to himself and I doubt that even his fans will buy that it was Obama's fault now. He has taken full credit for it getting way too high. Now he owns it. GOOD!

[harun]

20. They will blame this on Obama and Hillary

They have no shame.

[Orrex]

25. And on Mueller's witch hunt generating uncertainty...

[harun]

41. Ugh, you are probably very correct. I can hear the excuses in an Alec Baldwin

Trump voice in my head already.

[getagrip_already]

24. probably blame it on the dems for daca..

and shutting down the guvv.

[harun]

19. Long over due

[Vinca]

22. Stuff like this happens whenever Republicans win the White House.

Given we now have Trump, this will have to be the biggest, best, most tremendous crashing of the market ever.

[hexola]

23. TRUMP SETS NEW DOW RECORD!

LARGEST INTRA-DAY DROP IN HISTORY

Kramer is losing it!!!

[BumRushDaShow]

44. You were brave to watch him when that was happening!

[djacq]

26. History Repeats

The Orange Clown’s Tax Give Away
Deregulate Wall Street
Mulvaney in charge of CFPB
Placing tarrifs on imports

The Orange Clown still has not shown his Tax Records.

[Dopers_Greed]

27. Is Trump going to take credit for this?

He wouldn't stop crowing about all of the Obama job gains.

[malthaussen]

28. Still a couple hours to the closing bell...

... enjoy the ride.

-- Mal

[uppityperson]

32. 18 min until 4 pm eastern and close.

Hovering -900

[malthaussen]

35. Time zones got me.

I keep forgetting, I'm not in the East anymore.

-- Mal

[groundloop]

31. Well screw me..... Guess I can kiss my plan to retire in two years goodbye

I'd been wondering if I should move my 401K out of the market and into safer investments because of what 45* was likely to do to the economy. Apparently I waited too long.

[bucolic_frolic]

33. So let's see

we still need a blowoff crash like 1987 or 10 days of down like 2008-9

I always remember Marty Zweig prior to the '87 crash, on the Friday before the Tuesday, saying he was very uneasy it felt like a crash to him

What did we lose that day, 27%? That would be about -6,652 point drop ... but I don't think it's imminent. We'll rally several times first. But also consider the tremendous rise for 8 years. We are way overstretched.

The bigger they come the harder they fall.

I still expect to see Dow 7,000 at some point. Because we can't pay for it, the earnings are not there. The wages and income streams are not there to support 18 million new vehicle sales per year, a McMansion, vacations, Amazon and Whole Foods. People will cut back because they don't have it now that Mr. Ryan and Mr. Trump have taken it all away from us.

There are consequences to elections, and to political actions.

Don't blame the messenger. I didn't make the demographics or the Baby Boom.

[mahatmakanejeeves]

37. Marty Zweig

Last edited Mon Feb 5, 2018, 05:38 PM - Edit history (1)

I remember that too. I used to watch Wall $treet Week with Louis Rukeyser.

That was a great show. Louis_Rukeyser was a lot of fun.

And here are those videos:

Marty Zweig died a few years back. Louis Rukeyser too.

Martin Zweig

....
Mutual fund manager

Zweig appeared regularly on PBS television's Wall $treet Week with Louis Rukeyser, and in 1992 he was voted into the program's Hall of Fame. It was on that very program that he stated on 16 October 1987, that he was deeply worried and did not like what he saw in the stock market. The 1987 stock market crash precipitated the next trading day, 19 October 1987. At the time of his death Zweig was the chairman of Zweig-DiMenna Associates, Inc. He is also featured in John Reese's recent book, The Guru Investor: How to Beat the Market Using History's Best Investment Strategies.

[bucolic_frolic]

40. Still an in-depth interview with tremendous insight on market turbulence

Knowing what we know now, and how the markets have been studied by Weinstien, Hussman, and others, we have stars to guide us that were unknown back then.

Thanks for the link!!!

[BumRushDaShow]

45. Ahhh. Used to watch him AND his father

Always felt his dad (whenever he came on as a guest) had more insight, wisdom and sense.

[DBoon]

38. and don't expect developing nations to take up the slack

Especially with Trump threatening trade wars.

"Shithole" countries aren't going to bail us out.

[mahatmakanejeeves]

36. Trading curbs

Trading curb

A trading curb, sometimes referred to as a circuit breaker is a financial regulatory instrument that is in place to prevent stock market crashes from occurring. Since their inception, circuit breakers have been modified to prevent both speculative gains and dramatic losses within a small time frame. As a result of being triggered, circuit breakers either stop trading for a small amount of time or close trading early in order to allow accurate information to flow amongst market makers and for institutional traders to assess their positions and make rational decisions.
....

United States

Description

On the New York Stock Exchange (NYSE), one type of trading curb is referred to as a "circuit breaker". These limits were put in place after Black Monday in 1987 in order to reduce market volatility and massive panic sell-offs, giving traders time to reconsider their transactions. The regulatory filing that makes circuit breakers mandatory on United States stock exchanges is Securities and Exchange Commission Rule 80B. It is there that the specifics of circuit breakers are elaborated and the various price limits are outlined for investors to see.

The most recently updated amendment of rule 80B went into effect on April 8, 2013, and has three tiers of thresholds that have different protocols for halting trading and closing the markets.

At the start of each day, the NYSE sets three circuit breaker levels at levels of 7% (Level 1), 13% (Level 2) and 20% (Level 3). These thresholds are the percentage drops in value that the S&P 500 Index would have to suffer in order for a trading halt to occur. Base price levels for which these thresholds will be applied are calculated daily based on the preceding trading day’s closing value of the S&P 500. Depending on the point drop that happens and the time of day when it happens, different actions occur automatically: Level 1 and Level 2 declines result in a 15-minute trading halt unless they occur after 3:25pm, when no trading halts apply. A Level 3 decline results in trading being suspended for the remainder of the day.

[Cold War Spook]

39. all indicies down

gold up. That does seem to show that people are scared.

[jmowreader]

42. As of 12:44 pm pacific time 2/5/18 BTC is $7200 according to GDAX.com

Kitco is listing gold in the $1330s, and it's holding reasonably stable.

This is Trump's biggest worry right now: The Dow closed at 24,345 today. The Dow closed at 18,259 on November 7, 2016 - which we will call The Last Day With No Trump Effect. A little basic arithmetic says the Dow will be back to Obama's numbers at the closing bell next Tuesday if the Dow drops 1,014 points a day.

At some point we have to start tying Trump to professional short-sellers. Market manipulation is a serious crime, and if Trump is doing it that might be the one thing that convinces the GOP to impeach the bastard.

[Rollo]

43. As soon as Trump comes out and starts urging people to stay calm and invest in America...

I'm converting everything I can to cash...

This is not great for my forthcoming retirement... but at least I have enough cash on hand to pay off the mortgage before I retire.

[hamsterjill]

48. My plan pretty much, too.

I’ve got seven years until full retirement. My plan (and we all stipulate that plans don’t always go as we want) is to sock as much cash away as I can for those seven years in safe places. Can’t afford large losses.

[Skittles]

46. NOW it is Trump's economy

[LastLiberal in PalmSprings]

47. Today in the stock market, illustrated by skiers

It's a metaphor.

[riversedge]

49. yup!!

[BlueDog22]

50. What Come Up Must Come Down

The stock market will always fluctuate. It will swing from being undervalued to being overvalued. When it is undervalued, it will rise. When it becomes overvalued it will fall.

This was a correction that was necessary. We grew for nine straight years, and the market became over valued. Now it is time for the market to correct itself.

Never take credit for the market going up or down, because eventually it will do the other thing.

[Beartracks]

51. It's a conspiracy! Wall Street's trying to make Trump look bad! They're obviously biased!

Where is Wall Street's loyalty??!

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