Stock Market Oct 20-24

[MetalMeister]

Hey!!!!!!!!!!!!!

Check this out!

I just refreshed my yahoo stocks page and look what I got.

Anybody besides me see something in that DJIA down number?

This is real, I did not manipulate this at all.   

Last update: 02:41 pm CDT - Refresh

    *
      toggle Quotes - Edit
      Symbol        Price         Change    
      DJIA
              8,367.00         -666.66    -7.38%   
      ^NYA
              5,513.13         -538.21    -8.89%   
      S&P 500
              879.21         -75.84    -7.94%   
      NASDAQ
              1,588.91         -107.77    -6.35%   
      ^DJT
              3,511.02         -255.32    -6.78%   

[Depleted]

Got Gold?  Lets see    where we are....



Would you be buying now?

Yays and Nays....go for it!
cheers....d

I think the USD did decouple from Gold. Now Gold looks to be logarithmically inversely proportional to the USD...even worse...
Let's see how the derivatives unfold. They have had 2 days "kick at the can" on the market....

[MetalMeister]

Depleted,

Have you seen any articles related to Lehman Brother's derivatives issues today?

Thanks!

[MetalMeister]

Go here and watch the first video:  http://money.cnn.com/

A few of us could get together and buy Ford and GM pretty cheaply...

 

[whatsupdoc]

Bummer month for gold and silver stocks.  $HUI is now 67.7% off its high in March of this
year. The last time we saw $HUI this bad was the 65% drop when it came off the 101.36
high in Oct_1999 to the 35.31 low in Nov_2000.

Here is my monthly chart for $HUI that shows it is near the first band of support (BLUE arrow).
There is some support at 125 before the next support band indicated by the RED arrow. The
technical indicators RSI and SlowStoch are at levels not seen in almost 8 years.

[Bottomfeeder]

Depleted....I think I mispoke in talking about the the dollar and gold being coupled.  There was a period from about August 15 to August 27, where they each moved upward together.  A bit unusual.  Since that time gold and the dollar looking at a one year chart, seem to be moving in opposite directions as we tend to see more frequently.

What I was speaking about earlier in talking about coupling, was really looking at the two charts (dollar and gold) that gold should be about 7% lower relative to the dollar on its own.  A 7% fear/M3 premium I guess.

Now when you add the EURO/USD dollar trade into that chart, you see that gold has correlated with that currency trade all the way.  Except now gold is also showing prices 7% higher than that trade as well.  September 10, was the perfect corelation.

If I even had one ball, I would DZZ this thing down for a 15% gain.  Looks like a no brainer.

Sorry I cant figure out how to copy this chart on to this posting.  But if you want to better understand what I mean.  Run a one year chart, with GLD, UUP, and US/EURO.  Looks crystal clear.

Sorry guys help me out posting the chart.

[punter]

watch the youtube vid, hillarious

http://calculatedrisk.blogspot.com/2008/10/wsj-banks-may-see-record-credit-card.html

[richmanch]

Depleted,
I have no idea, but I'm hoping for the blue line. A little bit of gold stock can hurt a lot on a day like today. HGU started nosing around in the low 5's today. I got burned a bit trading in and out of it. If I'm not mistaken, these leveraged vehicles can go bust if things get ugly (this includes hxu, etc.) Anyone confirm or refute that?

Otherwise, it's ugly. Punter what did you say? Oct 27? Let's kill this bear already.

[pinetree]

I like DZZ too, and am currently long some.  I added more last week on it's break above the 50dma, I've been planning on adding more if it can  break the Sept resistance and advance to new highs... we're almost there.

Speaking of breaking out the new highs.... the VIX closed right around 70 for the third time in the last 2 weeks.  Another down day tomorrow and it should make a new closing high.  Just to stay rational and stop extrapolating the present into infinity I re-read Adam Hamilton's article.  This kind of fear is unsustainable, the bottom (if only an interim bottom) has to be near.  But...

The intraday low of Friday Oct 10 was not too far off from the 2002 bear market low.  So if the low of Oct 10 doesn't hold, we only have a small amount of space before we get to the '02 support level... after that there's nothing but air below us.  Scary.

[MetalMeister]

Love that one!!

Must be some Libertarians behind that one...  Who else has the time to spend writing and recording this stuff?

 

watch the youtube vid, hillarious

http://calculatedrisk.blogspot.com/2008/10/wsj-banks-may-see-record-credit-card.html

[Bottomfeeder]

Good job Pinetree.... I would be feeling pretty good about that position.  I think there is pretty safely another 10% left, maybe 15%, before you get to a breaking point for a posible reversal.

Punter is starting to look smarter with th at Oct 27 call, as a pretty darn close spot, where we could see an upside reversal, before we rinse and repeat, hopefully with higher lows and higher highs.  

That is the hope anyway.  I guess we need to first see what was it like 7800 hold first.

[Bottomfeeder]

Good question YC....BTW...what do Libertarians do for a living anyway?

[MetalMeister]

Heck!  We haven't even seen a real sell off yet...

The intraday low of Friday Oct 10 was not too far off from the 2002 bear market low.  So if the low of Oct 10 doesn't hold, we only have a small amount of space before we get to the '02 support level... after that there's nothing but air below us.  Scary.

[MetalMeister]

I think most Libertarians are pretty well off.  A lot of old money.  I took a hard look at Ron Paul's Congressional District and it is obvious the wealth there.  His district comes no where close to urban Houston.  He can afford to call himself a Republican in disguise!

Good question YC....BTW...what do Libertarians do for a living anyway?

[Bottomfeeder]

YC....LOL.....just curious!  I probably associate my beliefs with Libertarians more than any other party.

However I am not too old, and unfortunately only used to be wealthy!