***Official*** 2008 Stock Market Thread

[mcmilljb]

Originally posted by: Slew Foot
http://news.yahoo.com/s/politico/15295

Asian stock markets fall after Obama announced victor

Probably some investors using it as an excuse to take some profits. I don't think it really bothered them too much. I knew for quite a while he was going to win, so I'm sure they did too.

 

[goog40]

The Nikkei recovered most of its losses within about 20 minutes after it dropped, that article needs to be updated.

 

[Budmantom]

XM (SIRI) is down to $.28 so I had to buy some.

 

[ponyo]

Originally posted by: Budmantom
XM (SIRI) is down to $.28 so I had to buy some.

I can't believe that worthless company still has a marketcap of $900 million. That's one expensive turd.

 

[ponyo]

Picked up some Yahoo at $14. It's green today in the sea of red after it was announced Google has decided to end the advertising deal. I guess people are hoping for Mr. Softie bid.

 

[IHateMyJob2004]

Originally posted by: Naustica

Originally posted by: Budmantom
XM (SIRI) is down to $.28 so I had to buy some.

I can't believe that worthless company still has a marketcap of $900 million. That's one expensive turd.

Might as well get the stock certificates, atleast that way you can use the paper to heat your house next winter!

Rule number one of investing:
Do not loose money

Budmantom is fail! A company like BNI might be boring, but it will be around in 20 years all the time paying out a dividend.

 

[IHateMyJob2004]

BAC tanked today. Down 10%+ Consider it.

WFC dropped also.

Alot of good stocks are cheap.

It amazes me that people buy stocks that have uncertain futures (MSFT, YHOO, XM, etc).

BNI has a certain future. Boring AND cheap with a barrier to entry that is huge. 22,000 miles of track that costs $2 million to lay down. That is $66 billion. And a market cap that is half of that. It is not something that adds value, but it does demonstrate the barrier to entry. not to mention the land rights. And BNI acts a toll bridge. Want to ship products over rail, BNI collects a toll.

 

[ponyo]

Wells Fargo $10 billion stock offering

Wells Fargo just announced they're going to offer $10 billion in commons. Ouch! This is after they just got $25 billion from the TARP program couple days ago. It just confirms my opinion that financials can't be owned here even at this level.

 

[ponyo]

Originally posted by: IHateMyJob2004
BAC tanked today. Down 10%+ Consider it.

WFC dropped also.

Alot of good stocks are cheap.

It amazes me that people buy stocks that have uncertain futures (MSFT, YHOO, XM, etc).

BNI has a certain future. Boring AND cheap with a barrier to entry that is huge. 22,000 miles of track that costs $2 million to lay down. That is $66 billion. And a market cap that is half of that. It is not something that adds value, but it does demonstrate the barrier to entry. not to mention the land rights. And BNI acts a toll bridge. Want to ship products over rail, BNI collects a toll.

I wouldn't touch BAC and WFC with a ten foot pole. You can keep it all for yourself. You think lot of good stocks are cheap? It's cheap for a reason and will get much cheaper. I hope you have cash to take advantage when the time comes and have enough balls to pull the trigger.

You don't know the person's timeframe and risk profile when they're buying certain stocks. Even though I don't like XM that Budmantom bought, he can make money. That's ultimately what we're all after. I rather own MSFT and YHOO here than any bank or financial institution.

BNI will continue to profit in the coming years from agriculture, coal, natural gas, sand oil, and other commodities transport. I'm very bullish on BNI. That said, I sold my BNI position. Why? Because I'm betting I can buy it cheaper in the future.

You want to be longterm investor? You better hold on because the next 5 years, we're going nowhere. We'll go up and down but ultimately run in place. I'll take my chances and trade in-between while I wait for the true recovery.

 

[JS80]

Watch what happens after LBO debt goes bad, gonna kill CP.

 

[ponyo]

IHateMyJob2004,

Listen to this interview today with Meredith Whitney at Oppenheimer & Co.

http://www.cnbc.com/id/15840232?video=920170651&play=1

You know I'm no fan of any analcyst but I've got to give her credit for calling it right since the beginning of this financial meltdown. She hit the nail in the head with her Wells Fargo call today and think she'll be right about Citi going single. She says lot of smart things in the interview which I agree with.

 

[ponyo]

To this day, I believe the best thing for Microsoft to do is to buy Yahoo says Yang. What a moron. He turns down $33 cash deal and now is begging Microsoft to buy them. lol.

I sold 1/4 of the position in the premarket at $14.80. Plan to scale out rest of the position as it rises on speculation of renewed buyout bid.

 

[abovewood]

MSFT said they would not bid. I held YHOO for a few months and sold when MSFT's bid came out at $29. I barely made even on that. I also hold MSFT, way under water now.

 

[ponyo]

Originally posted by: abovewood
MSFT said they would not bid. I held YHOO for a few months and sold when MSFT's bid came out at $29. I barely made even on that. I also hold MSFT, way under water now.

I sold out of the remaining 3/4 position today for a loss. Trade catalyst (potential MS buyout) is gone so I don't need to stick around this pig. No need to turn a trade gone bad into an investment. I'm moving on and looking for other opportunities.

 

[ponyo]

We're only 12 points from S&P breaking the important 840 support which everyone on Wall St. and around the world is watching and no one here seems concerned or interested. I guess that's the sign of the times as even the VIX is "only in the 60s" compared to almost 90 when we last visited here. Every visit to the level weakens the support. Since everyone is watching the 840 level, it will be interesting to see if the break causes quick swish down and massive reversal or big freefall.

I hope people are hanging in there. This is a tough market for almost everyone but there will be good times again. All we can do is try to hang around until that time comes. My fear is we've lost a generation of stock market participants because of the recent losses. Many people are going to leave and never trust or invest in the market again. Who can blame them when the game is rigged and rules change at will.

 

[Chunkee]

Originally posted by: Naustica
We're only 12 points from S&P breaking the important 840 support which everyone on Wall St. and around the world is watching and no one here seems concerned or interested. I guess that's the sign of the times as even the VIX is "only in the 60s" compared to almost 90 when we last visited here. Every visit to the level weakens the support. Since everyone is watching the 840 level, it will be interesting to see if the break causes quick swish down and massive reversal or big freefall.

I hope people are hanging in there. This is a tough market for almost everyone but there will be good times again. All we can do is try to hang around until that time comes. My fear is we've lost a generation of stock market participants because of the recent losses. Many people are going to leave and never trust or invest in the market again. Who can blame them when the game is rigged and rules change at will.

 

[ponyo]

We got that 840 break on the S&P and you saw the market drop sharply as all the stop orders were placed below there. We're getting the snapper reversal from the break. Lot of traders were looking for that break and swoosh down to go long for a trade.

 

[Special K]

WTF is going on right now? Why is there suddenly a massive rally going on? Naustica, I have no idea what your post above mine means.

 

[HopJokey]

Originally posted by: Special K
WTF is going on right now? Why is there suddenly a massive rally going on? Naustica, I have no idea what your post above mine means.

His post is from a "technical analysis" perspective on the market.

I think a simple way of putting is all the investors realized "damn the market is way cheap right now, way too oversold I need to buy, buy, buy!" when the S&P 500 (index of top 500 companies in the US) dropped to 840.

 

[ponyo]

Originally posted by: Special K
WTF is going on right now? Why is there suddenly a massive rally going on? Naustica, I have no idea what your post above mine means.

There is support and resistance levels for the market. Some are more important than others. I'm not a chartist but I do keep an eye on charts for support and resistance levels. 840 on the S&P was important because that was the low level the market dropped earlier in October before reversing. If you look at the chart and go back to 2002, break in 840 means 770 was the nearest likely support with stronger support in the 600s. Many people placed stops right below 840 so that if that broke, they would sell out hoping to avoid the fall to 770 or lower. The problem is everyone was looking at this level and when it broke, all the stops got triggered and you saw the market swish down quickly as all these market sell orders hit at once. This is why you saw that big quick drop down after the 840 broke. Likewise, lot of traders were anticipating and looking for the break in 840 to go long for a trade. When it broke, traders with balls waited for the all the stop triggered sales to dry up and then went bought to go long. When others saw the buys, then others joined in not wanting to miss the snapper rally. Big powerful moves usually happen after an important level breach. We could've easily had a huge freefall after the breach. But with the market oversold and since this was the first break of this important level, the odds favored snapper rally once it broke. Everything that happened today was technical. Don't let the talking heads tell you otherwise like it was the Walmart report or some other bullcrap.

Last month I wasn't anticipating the 840 level breaching until next year. Now we got that out of the way. My feeling is if we do break 840 again this or next year, we're going to freefall. 840 Snapper was used up. Expecting it twice would be too cute.

 

[imported_Lothar]

Originally posted by: Naustica
We're only 12 points from S&P breaking the important 840 support which everyone on Wall St. and around the world is watching and no one here seems concerned or interested. I guess that's the sign of the times as even the VIX is "only in the 60s" compared to almost 90 when we last visited here. Every visit to the level weakens the support. Since everyone is watching the 840 level, it will be interesting to see if the break causes quick swish down and massive reversal or big freefall.

I hope people are hanging in there. This is a tough market for almost everyone but there will be good times again. All we can do is try to hang around until that time comes. My fear is we've lost a generation of stock market participants because of the recent losses. Many people are going to leave and never trust or invest in the market again. Who can blame them when the game is rigged and rules change at will.

I'm not particularly interested or concerned because I don't follow(or pay any attention to) charts.

I continue to emphasize health care.
GILD, JNJ, TEVA, ESRX, and COV.

I will continue to add onto LUK and other holdings as I see fit when given the opportunity by "Mr. Market".
I'm currently not looking to buy any new security that's not already in our current 17 stocks portfolio.
It also doesn't help that I have my 1st student loan payment due on the 28th of this month and my mother is starting to become risk adverse hearing the DOW dropping -400 points everyday in the news eventhough I've reassured and shown her that we're only down -22% compared to the market's -35%.

 

[Special K]

Originally posted by: Naustica

Originally posted by: Special K
WTF is going on right now? Why is there suddenly a massive rally going on? Naustica, I have no idea what your post above mine means.

There is support and resistance levels for the market. Some are more important than others. I'm not a chartist but I do keep an eye on charts for support and resistance levels. 840 on the S&P was important because that was the low level the market dropped earlier in October before reversing. If you look at the chart and go back to 2002, break in 840 means 770 was the nearest likely support with stronger support in the 600s. Many people placed stops right below 840 so that if that broke, they would sell out hoping to avoid the fall to 770 or lower. The problem is everyone was looking at this level and when it broke, all the stops got triggered and you saw the market swish down quickly as all these market sell orders hit at once. This is why you saw that big quick drop down after the 840 broke. Likewise, lot of traders were anticipating and looking for the break in 840 to go long for a trade. When it broke, traders with balls waited for the all the stop triggered sales to dry up and then went bought to go long. When others saw the buys, then others joined in not wanting to miss the snapper rally. Big powerful moves usually happen after an important level breach. We could've easily had a huge freefall after the breach. But with the market oversold and since this was the first break of this important level, the odds favored snapper rally once it broke. Everything that happened today was technical. Don't let the talking heads tell you otherwise like it was the Walmart report or some other bullcrap.

Last month I wasn't anticipating the 840 level breaching until next year. Now we got that out of the way. My feeling is if we do break 840 again this or next year, we're going to freefall. 840 Snapper was used up. Expecting it twice would be too cute.

Interesting. When I was watching it yesterday, I thought to myself "there hasn't been any news released today that could have accounted for such a large swing".

 

[imported_Lothar]

Originally posted by: Special K

Originally posted by: Naustica

Originally posted by: Special K
WTF is going on right now? Why is there suddenly a massive rally going on? Naustica, I have no idea what your post above mine means.

There is support and resistance levels for the market. Some are more important than others. I'm not a chartist but I do keep an eye on charts for support and resistance levels. 840 on the S&P was important because that was the low level the market dropped earlier in October before reversing. If you look at the chart and go back to 2002, break in 840 means 770 was the nearest likely support with stronger support in the 600s. Many people placed stops right below 840 so that if that broke, they would sell out hoping to avoid the fall to 770 or lower. The problem is everyone was looking at this level and when it broke, all the stops got triggered and you saw the market swish down quickly as all these market sell orders hit at once. This is why you saw that big quick drop down after the 840 broke. Likewise, lot of traders were anticipating and looking for the break in 840 to go long for a trade. When it broke, traders with balls waited for the all the stop triggered sales to dry up and then went bought to go long. When others saw the buys, then others joined in not wanting to miss the snapper rally. Big powerful moves usually happen after an important level breach. We could've easily had a huge freefall after the breach. But with the market oversold and since this was the first break of this important level, the odds favored snapper rally once it broke. Everything that happened today was technical. Don't let the talking heads tell you otherwise like it was the Walmart report or some other bullcrap.

Last month I wasn't anticipating the 840 level breaching until next year. Now we got that out of the way. My feeling is if we do break 840 again this or next year, we're going to freefall. 840 Snapper was used up. Expecting it twice would be too cute.

Interesting. When I was watching it yesterday, I thought to myself "there hasn't been any news released today that could have accounted for such a large swing".

Investors were snapping up what they think were bargains on the market yesterday.
Nothing more, nothing less.

A rising tide lifts all boats.

 

[alphatarget1]

Do y'all think it's wise to start building up some BAC positions with "expendable" money?

 

[imported_Lothar]

Originally posted by: alphatarget1
Do y'all think it's wise to start building up some BAC positions with "expendable" money?

Hell no.
Let the Merrill and Countrywide problems come home to roost first.

BAC has already done a dividend cut. I anticipate another should the economy situation get any worse than it already is.
C has already cut dividend at least 3 times now I think(I forgot?)