Carnage! Blood Bath! Run for the Hills!

[davidslane]

The US markets are closed --- maybe that's good as we would most likely be seeing a Black Monday 1987 like carsh today!!!


World markets are tanking!

Brazil            -5%
India             -7%
Australia       -3%
Germany       -6%
France          -5%
Japan            -4%
Hong Kong    -5.5%
UK                 -3.5%


And don't even mention resource stocks.
Capitulation doesn't even come close.

We're seeing panic selling, not capitulation.
People are dumping shares (probably due to margin calls).


We're seeing 10% to 20% drops on the likes of:
- Uranium One (-13%)
- Mega (-16%)
- Pinetree (-12%)
- Paladin (-11%)
- Laramide (-17%)
- Forsys (-16%)
- UEX (-19%)
- CXX (-14%)


It's a blood bath.


If the US Fed doesn't come through with at least a 50 basis point cut, but more likely a 75 to 100 point emergency meeting cut before the US markets open on Tuesday, well then, we'll see October 21, 1987 all over again.

At least my small resource stocks aren't margin eligible so the changes for a margin call tomorrow will be lessened.


And with a big drop like we're seeing, we'll see a "V" like bounce back.
But it will take 1 to 2 years to recover these resouce stock losses.


But I'll hold, I'm not selling into this.
And if I do get a margin call, well, I sell just 1 or 2 of the weakest of my 80 some positions so I don't have to sell the best.


Good luck to all!

[megadeth]

The TSX is down 521 as I write this, and many of the U stocks on the TSX that I follow (and own) are now above their lows.

Davidslane is right about margin calls... tomorrow will be even worse, when people will sell their weaker holdings, some of those U stocks wil drop even further.

This presents a great buying opportunity, though we might not get the very lowest part of the V, we will get the rebound - and then sell!

Boy, I thought MGA at 2.42 was a great deal the other day.  That dropped to $1.78 in earlier today.  Ouch.