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Alright market experts ...

Seinfeld

Seinfeld

All-American
Nov 30, 2006
11,336
7,311
113
The Dow, S&P, and Nasdaq are in the middle of a 36-hr bloodbath in spite of positive news surrounding Aug unemployment, vaccine distribution, and Covid cases continuing a 5-wk decline even while schools and more sports start back.

Why is the market in mini-panic attack mode right now? Just a predictable correction or is there more to it?
 
Jeffreauxdawg

Jeffreauxdawg

All-American
Dec 15, 2017
8,871
7,935
113
Because the stock market is a mechanism designed to transfer money from the impatient to the patient.
 
TheStateUofMS

TheStateUofMS

All-Conference
Dec 26, 2009
10,317
2,347
113
Classic profit taking from exuberance. AAPL being up 40% the month of August was absurd.

This is profit taking. Pretty orderly too. I think you'll see profits taken in high growth and possibly moved into cyclical stocks like certain financials, industrials and materials, which would be consistent with a market broadening out as the world and US economy get their footing back.

Atlanta Federal Reserve has Q3 GDP at 29% after today's employment numbers.

As I always say, stop trying to time the market in terms of moving in and moving out thinking you can do it successfully over time. Trim positions when they get to hot and rebalance. It works. Stick to your long term asset allocation strategies and if you're doing that and not fully invested 100% of the time, you're able to take advantage of corrections like this.

I will say this, I think with all the algos these days and many of these funds are running the same algos for the most part, corrections may come about very quickly and the market may reprice itself faster than in the past. We just had the shortest bear market in US history.

Technically speaking Feb 19th was the start of a bear market, and March 23rd was the start of a new bull market.

Hope this helps.
 
F

fishwater99

Freshman
Jun 4, 2007
14,073
54
48
The Market usually goes down in September. People are taking their gains right now by selling.

"September is historically the worst month of the year for stocks on average since 1950. There are many theories why. One goes that money managers back from vacation in the summer exit all the positions they were planning to sell. But whatever the reason, equities are usually on sale in September."

https://www.ccn.com/history-september-stock-market-crash/
 
V

VegasDawg13

Freshman
Jun 11, 2007
2,191
80
48
Just a reminder for anyone feeling panicky...

Despite the "36-hr bloodbath," the S&P is still higher than it was 2 weeks ago.
 
M

Msubulldogfan1

Freshman
Sep 12, 2013
8,833
79
48
Go Budaw said:
Don’t think I’ve ever heard it worded any better than that.
Click to expand...
Buffet said that.

I believe he also coined the phrase (not exact) “be fearful when others are greedy, be greedy when others are fearful”

He’s the best ever playing the stock market.
 
Drebin

Drebin

Heisman
Aug 22, 2012
21,786
25,569
113
Warren Buffet also said, "Always date a girl with small hands. It will make your penis look bigger than it is."

At least I think it was him. I could be mistaken.
 
S

Shamoan

Redshirt
Jun 27, 2013
12,466
0
0
but unemployment is now at 8.4%...good sign considering normal (2019) is about 3.6%. now, if some of those blue states open up some more....look out.
 
S

Shamoan

Redshirt
Jun 27, 2013
12,466
0
0
 
Jeffreauxdawg

Jeffreauxdawg

All-American
Dec 15, 2017
8,871
7,935
113
Unemployment is nowhere near 8.4%. Remember when Trump was running how he talked about the real unemployment numbers being 15-20%? Well he was referring to the phoney numbers the BLS uses.... And it is still using the U-3 number which is bad enough... But now with Covid19 we created all of the new versions of unemployment that are not being counted.

View attachment 17601

These people on PUA are still getting the $600 extra per week and won't go back to work until they absolutely have to.

Look at the 2 highlighted lines below... The PUA is going up why? That's where the free money is. The bottom line shows the total people on unemployment... 29 million. That is 18 times more than a year ago.... It's not about opening back up anymore. It's about cutting off the handouts. I was at Kroger just now waiting for 10 minutes to get a cart... Ended up carrying 2 handbaskets. They cannot hire people because they are getting paid to stay home.

View attachment 17600
 
TaleofTwoDogs

TaleofTwoDogs

All-Conference
Jun 1, 2004
4,126
1,857
113
TheStateUofMS said:
Classic profit taking from exuberance. AAPL being up 40% the month of August was absurd.

This is profit taking. Pretty orderly too. I think you'll see profits taken in high growth and possibly moved into cyclical stocks like certain financials, industrials and materials, which would be consistent with a market broadening out as the world and US economy get their footing back.

Atlanta Federal Reserve has Q3 GDP at 29% after today's employment numbers.

As I always say, stop trying to time the market in terms of moving in and moving out thinking you can do it successfully over time. Trim positions when they get to hot and rebalance. It works. Stick to your long term asset allocation strategies and if you're doing that and not fully invested 100% of the time, you're able to take advantage of corrections like this.

I will say this, I think with all the algos these days and many of these funds are running the same algos for the most part, corrections may come about very quickly and the market may reprice itself faster than in the past. We just had the shortest bear market in US history.

Technically speaking Feb 19th was the start of a bear market, and March 23rd was the start of a new bull market.

Hope this helps.
Click to expand...

What I want to know is which broker house or institutional investor started the algo blood bath. I'll keep an eye on them in the future.
 
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