12/24, Dow takes a dump...

The Dow fell throughout the morning, but the dive (1500 point drop) that happened around 2:40 p.m. ET actually resembled the violent 2010 flash crash. However, no trading desks contacted by CNBC reported trading issues in Monday's big sell-off.

Sure enough, markets recovered somewhat just as they did that on that May 6 event nearly eight years ago.

But the damage could be substantial to the collective investor psyche.

"This is scary. A lot of people made a ton of dough over the last nine years," said Stephen Weiss, founder and managing partner at Short Hills Capital Partners. "I think we've got some more to go. There's not a catalyst to step in."

The frightening contraction happened to a market that looked bulletproof.

The Dow had soared more than 40 percent since President Donald Trump's election, a period that included an impressive nearly 20 percent rise in the S&P 500 for 2017 and the fastest start ever to a year in 2018.

Is this the Deep state trying to screw Trump and investors caught in the middle?

Programmed trading run amok?

I see silver is at $14.60 or so, no spike in buying silver
I see gold is at $1260 or so - again, no spike. Hence the question of politics vs market forces....

 

That's pretty good...especially considering that 1500 point drop hasn't happened for thirty five minutes...yet.

 

I see that it is currently down 653 per MSM.com (10:21 ADST)

 

Is this not normal at the end of each year?

 

With a Dow so high, sooner or later we would have seen a selloff. It is terribly overpriced. I find it mindboggling that people would think it would remain in that lofty area - sure - it will until something scares them and when combined with end of year selloffs (mutual/hedge funds have to show end of year profit) and considering how high it was... What scared them? We now have a House dominated by Democrats who are not exactly business friendly plus the Fed raising interest rates to cool off the economy/inflation... so for my 2 cents, it is market forces taking the safe bet, taking their profits now.

What I do find interesting is there is something going on at the Fed. Maybe a change of leadership? What's going on there?

Gold...up to $1269 I guess we know where some of those stock profits went...no huge increase but seems to continue a steady increase which is a bit concerning... It's always 'Boom and Bust' so suppose we shouldn't be surprised...

Nah...they probably caused it by selling off and taking profits. LOL! The Fed will ensure that the economy will slow down and with Congress split (Dems/House, Rep/Senate) - well - the happy days are over so better to make money now.

 

No, this is ugly. Most years the DOW ends on a positive note. Currently we are at almost a 12% loss. December has been brutal and there are a few days left in the year.
Dow Jones - 10 Year Daily Chart

I won't be pointing fingers at politicians but..... the market has been inflated for years but I do wonder how low it will go.

 

Good I guess,I only have 1/3 of my investments in a mutual fund,The rest is in cash in a savings acct.

 

Generally.
That's why almost every year I swap out stock funds for bonds some time around September or October.
2017 was the only years i didn't do that in ages. I don't expect to do that again in the next 20 years. In 2016, the stocks to bonds deed had been done weeks earlier plus I expected hillery to win, then when that didn't happen the night of the election, what was that like November 3 or 7th or something, I went all in on stocks.

Remember I have no other savings, I spend it all on hookers, cocane, booze and the rest I waste.

 

a buying opportunity in the dollar cost averaging plan?

 

Funny , same life style !!

 

All bubbles and bursts in the stock market or property values are manipulated to periodically take money from those that panic into selling low after they buy high. This one is no exception though IMO politics is also a driver.

 

Dow up 550 early today. Wonder how many "in the know" bought real low and now....


Edit to add - now Dow up a full 650. ShaZam.! Who made millions? The folks that engineered the drop?

 

I made 50 bucks on the stuff I bought Monday.

 

The federal Reserve started it.

 

I wonder how much the Donald made shorting the market, threatening to sack the head of the Fed (whom he appointed in the first place; Donald only has the best people working for him, judging by the long list of Trump appointees facing Federal jail sentences)?

The Government's just a toyshop for Donald to indulge to his own fancies and fantasies.

 

The 30-stock Dow closed 1,086 points higher, or 4.98 percent. Wednesday’s gain also marked the biggest upside move on a percentage basis since March 23, 2009, when it rose 5.8 percentage points. The S&P 500 also catapulted 4.96 percent

Ya, rigged game, bad game.