Dow drops 1,175, biggest-ever point drop

crimsonaudio said:

Considering how the DOW ended last week, there's no telling what we're looking at. These corrections are normal, and we haven't had one in a bit, but you always wonder if this is 'the one'...

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I read on MSN where the futures for tomorrow are predicting at least another 1K drop.

http://www.msn.com/en-us/money/mark...-point-fall-at-the-open/ar-BBIKlba?li=BBnb7Kz

If anyone cares to compare, the djia is still so much higher now than it was a year ago that it is amazing. Compare it to 5 years ago and it's astonishing. I think this is nothing more than a correction because the market responded too positively to certain stuff. Once the correction is over we can move forward and continue growing. Hopefully the correction does not last long. Regardless of who is president I want the American economy to succeed and I do not give a rats behind about the Trump economy versus the Obama economy.

I got out of the market in 2008 after loosing 30% of my retirement funds. I never went back because I was only going to work 5 more years before retiring and fearful I couldn't stand anymore losses. Sometimes your peace of mind outweighs the rollercoaster ride!

Displaced Bama Fan said:

I read on MSN where the futures for tomorrow are predicting at least another 1K drop.

http://www.msn.com/en-us/money/mark...-point-fall-at-the-open/ar-BBIKlba?li=BBnb7Kz

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awesome.

Well, the Dow is back up a little today so maybe the "machines" that were creating this fall have been blocked some how.

Look up "short volatility crash" and that will explain what happened yesterday. As an active trader, it was widely known that being short volatility (VIX) was the most over crowded trade in wall street. Everybody was short volatility which means the slightest correction turns into a 1,500 point intraday drop because everyone who was short had to cover their position. That subsequently led to certain volatility (VIX) products like SVXY and XIV being completely liquidated or terminated. Literally billions wiped out from hedge funds and retail investors. Google SVXY and read what happened if that sort of thing interests you. It's really dangerous when people who have no background or know how these instruments work recommend them to your average joe investor. SVXY was considered the safest trade by a lot of people (look at the 1 year chart before yesterday) but they had no idea what would happened when the rug got pulled. SVXY went from $19 to $140 in a year and now is worthless. Dropped from $110 to $10 in a day..

CrimsonForce said:

Look up "short volatility crash" and that will explain what happened yesterday. As an active trader, it was widely known that being short volatility (VIX) was the most over crowded trade in wall street. Everybody was short volatility which means the slightest correction turns into a 1,500 point intraday drop because everyone who was short had to cover their position. That subsequently led to certain volatility (VIX) products like SVXY and XIV being completely liquidated or terminated. Literally billions wiped out from hedge funds and retail investors. Google SVXY and read what happened if that sort of thing interests you. It's really dangerous when people who have no background or know how these instruments work recommend them to your average joe investor. SVXY was considered the safest trade by a lot of people (look at the 1 year chart before yesterday) but they had no idea what would happened when the rug got pulled. SVXY went from $19 to $140 in a year and now is worthless. Dropped from $110 to $10 in a day..

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i think this is a lot of the problem. lots of folks like to chase what they see as easy money, and those lots of folks turn things upside down very quickly. we see it in our business all of the time.

uafanataum said:

If anyone cares to compare, the djia is still so much higher now than it was a year ago that it is amazing. Compare it to 5 years ago and it's astonishing. I think this is nothing more than a correction because the market responded too positively to certain stuff. Once the correction is over we can move forward and continue growing. Hopefully the correction does not last long. Regardless of who is president I want the American economy to succeed and I do not give a rats behind about the Trump economy versus the Obama economy.

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That's true, and I don't think anybody argues that point.

But the Head Jack S decided to use the stock market to boast about what a great job he's doing. Consequently, it's fair to rip him when it falls.


Now......let's all be honest, okay? The fact is that Presidents have very limited amount of what they can do to the economy, okay? That's not to say they can't make things marginally better or worse, but they can't turn situations around overnight. I've lived through booms and busts as have most of you. And yeah, we vote for Prez in large part on the basis of an issue he can't do much about.

Reaganomics supposedly caused the 80s boom and in a way it did but not in the way a lot of conservatives want to think. There was a defense buildup. Places that built stuff for the defense department got money, got jobs, boom. Cable TV and the communications industry expanded, too. The home computer was built. Blah blah blah.

The boom people now give Clinton credit for BEGAN in March 1991, also known as "seven months before Clinton even announced he was running." He benefited from the end of the Cold War and the expansion of the world wide web and was lucky enough to leave office before the inevitable contraction occurred.

I can blame Bush for a lot of things, but the problems that caused the housing bubble to burst preceded him even becoming governor of Texas.

They get credit for it, but they have little to do with it most of the time.


Cheeto decided to play the, "I'm so awesome" card in an era where every single word is captured on video......and then it blew up on him as was inevitable. He deserves every bit of ridicule he gets on this.

Trump warned the stock market it was making a huge mistake.

Maybe the Dow is kneeling?

We need to root out the liberal Deep Stock conspiracy.

Why does the Dow hate America?


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