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DOW

 

DOW look set to end positive today. Today's ops normal. :)

 

It is no coincidence that the chart climbed laboriously for about a week - this  was in line with the waxing moon, ie. growing frm newmoon to fullmoon.

And yesterday (28 Aug 2007) was the start (1st day) of the Full Moon, hence the large fall.... so it does seem teh moon is a timing device of sorts!!!

Chances are during the waning moon, the market will weaken...  

 

Based on the chart, it looks certainly on a downtrend.

However, in current market situation, I don't pay much attention to these chart anymore.

the index moves according to news and signal now.

If Fed gives a postive signal, the index will shoot right up again, against the trend.

Well, TA do state that its all about emotion.

 

wow it is very clear. Downward spiral

 

Technicians will see the obvious signs in this
"Dow Jones 3-Month Chart"... 

"Heated frogs" struggled for supremacy for about one week...
only to see the gains vanish in one day!... 

 

Fed Put Inflation Skepticism Above Credit Concern

Federal Reserve officials put aside concerns about the rising cost of credit at their Aug. 7 meeting because they weren't convinced a slowdown in inflation would last, minutes of the gathering said. Ten days before the Fed was forced to cut a key interest rate, the Federal Open Market Committee was given lower growth forecasts by staff economists, and noted that "strains in financial markets'' jeopardized the expansion. Further turmoil might require a response, the panel acknowledged, though that sentiment didn't appear in the statement after the meeting. "Policy makers would need to watch the situation carefully,'' the central bank said. "For the present, however, given expectations that the most likely outcome for the economy was continued moderate growth, the upside risks to inflation remained the most significant policy concern.'' The records don't include the Aug. 16 emergency video conference when the FOMC reversed course and lowered the discount rate, saying that risks to economic growth had ``increased appreciably.'' The benchmark lending rate was kept unchanged at 5.25 percent. Policy makers underestimated the contagion from subprime credit markets to less risky borrowers, the minutes showed. "Funding had become more costly and difficult to obtain for riskier corporate borrowers, but there had been little net change in the cost of credit for investment-grade businesses,'' the Fed said.

 

I guess so. Nature will find a way to realign the forces and markets. Why not wait? Waiting is 1 part of the discipline of investment that no one has taught me. It is this discipline to wait for the opportune time to invest that I am honing my skills now. WAIT.
and things will unfold before our eyes. :) Cheers.

A soft landing seems a plausible solution to correct the structural faults in the financial system.

 

Suggestion to solve this???

Let nature takes its course.. Which looks like what MAS is currently doing...

 

No thesis or expertise. Just observation.

Perspective- Mortgages repackage as instruments and placed with pension funds, investors and speculators. Money received by banks are loan out to various institutions and persons to fuel the consumer spending in US. This goes on and on. Multiplying effects have set in.
What happens when pension funds redeem? Banks got to pay. No money to pay, credit crunch. Get back from the loans to other institutions and persons.

This systemic flaw of easy money has created a stress on the financial system around the world.
So what happens over the last couple of weeks? Foreign funds pulled out US$3 billions from Asia last week to alleviate the credit crunch in US.

So what if FED reduces the Interest rate? Inflationary pressures will set in. Prices spiraling upwards. Impact on earnings and slow down economic growth.- goes into recession....???

So what if FED does not reduce interest rate? US Sub Prime will have more defaults. Credit squeeze. Redemption by financial institutions, pension funds and insurance for money. Big problem. Financial meltdown.

Do you have any suggestions how to solve this???? Let's wait and see.

 

 Is it possible to use CDOs as an economic pawn to drag down..... any expert can enlighten? Any Thesis on this topic?

 

actually, it is nothing compared to 1997, 1987, 1991 where the drop is more significant. You will experience more this time round. 20-30% correction. Not yet. just waiting for program trading and all sentiments to align southwards. This will be something never seen before.
 

 

If it's really going down tonight, it will be the 3rd consecutive days in this wk...i guess STI is gonna be even more bloody, History may repeat like what happened on 1st Aug. I cross my fingers on tt.

Rgds,
ttman 

 

Ok, I placing down again. This time no turning back.

 

Will Dow continue to fall tonight? Your take pls?

rgds,
ttman

 

QUOTES:

Market Overview

Market Summary USAAMERICASEUROPEASIACURRENCIES Major Market Indexes Industry Indexes International Indexes Sector Performance Rates DJIA 13,041.85    -280.28    -2.10% Nasdaq 2,500.64    -60.61    -2.37% S&P 500 1,432.36    -34.43    -2.35% Dow Util 477.01    -5.80    -1.20% NYSE 9,289.49    -239.44    -2.51% AMEX 2,177.14    -61.22    -2.74% Russell 2000 767.83    -21.62    -2.74% Semcond 476.08    -11.47    -2.35% Gold future 673.50    -2.70    -0.40% 30-Year Bond 4.86%    -0.00    -0.02% 10-Year Bond 4.53%    -0.07    -1.44%  Market Diaries Issues: NYSE Nasdaq Advancing  434  631 Declining  2,892  2,391 Unchanged  68  111 Total:  3,394  3,133 Issues at: 52-Week High  7  8 52-Week Low  32  46 Volume: Advancing  63,055,000  152,943,000 Declining  1,330,848,000  1,383,694,000 Unchanged  3,880,000  44,999,000 Total:  1,397,783,000  1,581,636,000 8/28/2007 8:00:00 PM Market Screener NYSENASDAQAMEXOTC Most Active by Volume on 8/28/2007 Symbol Last Change Volume IWM 76.55    -1.980 86.28M   THC 3.34    -0.340 73.40M   HD 35.05    +0.025 55.79M   PFE 24.47    -0.290 48.11M   GTW 1.85    +0.030 46.51M   EMC 19.09    -0.560 41.19M   C 46.14    -1.650 39.00M   GE 38.05    -0.950 37.50M   F 7.51    -0.290 32.25M   BAC 49.66    -1.210 30.40M    Add symbols to My Portfolio More...

 

Moreover, there is no sign of interest rate reduction. This time will further collapse the STI and regional !!!

 

U.S. stock indexes tumbled more than 2 percent after Merrill Lynch warned that ailing credit markets will hurt bank profits, while reports showing eroding consumer confidence and falling home prices added to concerns about the economy. The Dow Jones industrial average skidded 280.28 points, or 2.10 percent, to 13,041.85. The Standard & Poor's 500 Index dropped 34.43 points, or 2.35 percent, to 1,432.36. The Nasdaq Composite Index tumbled 60.61 points, or 2.37 percent, to 2,500.64.

 

 

Dow chart just keep plunging downwards