Stock Market Sell off

Discussion of the recent unfolding of history.

Stock Market Sell off

Postby WW_III_ANGRY » Mon Mar 09, 2020 7:32 pm

Welcome to the biggest stock market sell off! The DJA is Down 2000 points in one day!

What people in the media and or journalists don't understand when they say sell off, is that it isn't a sell off. Lets take a look at this?

There were no stocks sold from the point of the opening market in which prices were drastically lower than the last time they opened. When the stock market opens lower (this works the same as if it opens higher as well), it is not a sell off it is an instant devaluation, or if it opens higher, it is an instant appreciation.

The other thing that causes price collapse is simply not really a "sell off". Who are the people who own these stocks selling to? Buyers. If anything, its a buy up at the lowest price. Put your bid in, and hope it goes low enough for you to buy it. The price of stocks change due to someone actually selling it to a buy at a lower price. What changes the price, is the rate at which they are sold at the lower price as opposed to being bought at a higher price. So while a stock may drop a dollar a share, it may have only took a few transactions to get there. It doesn't mean more shares were sold at the lower price, it simply means it was sold to the lower bid in a more accelerated rate. Actually, more shares may be bought/sold at the lowest price throughout the day. It's never a sell off, its always selling and buying and whenever someone says its a sell off, that's the time to be buying. Remember folks, red = buy, green = sell and don't let this fear mongering fuck you.
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Re: Stock Market Sell off

Postby Zero_Sum » Mon Mar 09, 2020 7:52 pm

You're late to the party pal, where were you twelve years ago? :lol: 8) :P
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“Assuming one can never leave permanent social exile and alienation keep on living only to observe the total collapse of entire societies, nations, or civilizations where afterwards in the inevitable chaos revel in its total destruction taking satisfaction within it as a casual witness. Let it all burn and come crashing down in a festival or spectacle orgy of violence.”-Myself

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Re: Stock Market Sell off

Postby WW_III_ANGRY » Mon Mar 09, 2020 9:03 pm

Zero_Sum wrote:You're late to the party pal, where were you twelve years ago? :lol: 8) :P


Well its a fairly good party today as well, anyway.
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Re: Stock Market Sell off

Postby Meno_ » Mon Mar 23, 2020 5:40 pm

Zero_Sum wrote:You're late to the party pal, where were you twelve years ago? :lol: 8) :P



{Better late then never. Here is a replay of the 1929 market support by JP Morgan & Co. -this time by a more carefully imputed program by the Federal Reserve}:

MARKETS

Fed to pump in more than $1 trillion in dramatic ramping up of market intervention amid coronavirus meltdown





The Fed announced a bold new initiative in an effort to calm market tumult amid the coronavirus meltdown.

In all, the new moves pump in up to $1.5 trillion into the financial system in an effort to combat potential freezes brought on by the coronavirus.

This was the second day in a row and the third time this week the Fed has stepped in. 

Stocks staged a sharp turnaround from earlier losses, though some of those gains were pared.



The Federal Reserve stepped into financial markets Thursday for the second day in a row and the third time this week, this time dramatically ramping up asset purchases amid the turmoil created by the coronavirus.

"These changes are being made to address highly unusual disruptions in Treasury financing markets associated with the coronavirus outbreak," the New York Fed said in an early afternoon announcement amid a washout on Wall Street that was heading toward the worst day since 1987.

Stocks were off their lows following the announcement though some of the gains were pared as the market digested the moves. Some in the market were skeptical that the move was enough, and even whether the the Fed itself had the proper tools to reverse the current market downtrend.

"We continue to emphasize that this Fed will act aggressively and in particular that central banks are focused on safeguarding market functioning at this point, and will continue to provide liquidity in scale," Ebrahim Rahbari, director of global economics at Citi Research. "However, despite the sharp initial risk rally, we think these measures will still not be sufficiently to durably stabilize market sentiment yet in light of credit concerns and escalating health concerns."

One part of the announcement saw the Fed widen the scale for its $60 billion worth of money the Treasury purchases, which to now had been confined to short-term T-bills. 



Under the new regime, the Fed will extend its purchases "across a range of maturities" to include bills, notes, Treasury Inflation-Protected Securities and other instruments. The central bank will begin purchasing coupon-bearing securities, something market participants have been clamoring for since late 2019.

The purchases start Thursday and will continue through April 13.

The second part of the new operations will see the New York Fed desk offer $500 billion in a three-month repo operation and a one-month operation. The offerings will happen on a weekly basis through the remainder of the program.

In addition, the Fed will continue to offer at least $175 billion in overnight repos and $45 billion in two-week operations. Repos are short-term operations in which financial institutions provide high-quality collateral in exchange for cash reserves they use to operate.

The extraordinary moves came amid extreme market turmoil created by uncertainty over the coronavirus pandemic. Government bond yields earlier this week cascaded to record lows amid reports of liquidity issues in the market and fears of a global recession.

However, questions remain whether the Fed can arrest the market's issues on its own. Wall Street has been looking for an aggressive fiscal response and has yet to get it from Washington lawmakers.

"The virus was the catalyst but it's not the cause," said Christopher Whalen, founder of Whalen Global Advisors. "Both bonds and equities were inflated rather dramatically by our friends at the Fed. You're seeing the end game for monetary policy here, which is at a certain point you have to stop. Otherwise you get grotesque asset bubbles like we saw, and the engine just runs out of fuel."

Markets have been looking for action by the Fed, which instituted an inter-meeting interest rate cut last week that did nothing to quell concerns. The Fed on Monday increased the limits for its ongoing repo operations, then Wednesday expanded the limits an announced a $50 billion term offering that attracted heavy interest earlier in the day Thursday.

Along with the announcement, the Fed pledged that "the terms of operations will be adjusted as needed to foster smooth Treasury market functioning and efficient and effective policy implementation." 



>>>>>>>>latest plunge>>>>>>>>>>>>>

Published: 

March 23, 2020 11:58 AM UTC

Dow Jones Plummets as Stocks Bleed Toward Worst Month in 90 Years

If the Dow Jones crashes below the 18,000 mark before the end of March, it will go down as the worst month in history for the U.S. stock market.



 



 



The Dow is down 26% in March, already the second-worst month on record. | Source: REUTERS/Lucas Jackson

The Dow Jones Industrial Average (DJIA) fell on Monday as the stock market extended its month-long plunge.

The Dow’s 26% fall in March so far is now the second-worst month on record, beaten only by a 30% drop during the Great Depression in 1932.

Democrats blocked the Trump administration’s rescue package last night, adding more pain to the stock market.

The Dow Jones is veering towards yet another disastrous milestone as the stock market sell-off continues on Monday. The index has fallen more than 26% in March, putting it on track for the worst month in almost 90 years.

Only one month in history saw bigger losses: September 1931, during the Great Recession, when the Dow fell 30%.

The bad news is, there are still seven trading sessions left in the month.

If the Dow Jones is below this red line at the end of March, it will mark the worst month in history for the U.S. stock market. Source: TradingView / CCN annotation

Dow Slides Below 19,000

Dow Jones Industrial Average (DJIA) futures hit ‘limit down’ circuit breakers within minutes of opening on Sunday night.

Things recovered overnight after the Federal Reserve announced unlimited asset purchases, but the stock market still opened to losses on Monday.

The Dow Jones Industrial Average (DJIA) fell below 19,000 on Monday. | Source: Yahoo Finance

The Dow Jones fell 251.89 points or 1.31% to 18,922.09.

The S&P 500 dropped 1.08%, while the Nasdaq clung to narrow gains of 0.16% as of 9:58 am ET.

Stock Markets Still Nervous

Despite one of the worst months in history, the stock market selloff shows no sign of letting up. In Europe on Monday, stocks retreated to seven-year lows as the STOXX 600 plunged a further 4.6%.

The financial bloodbath is its own pandemic, impacting markets around the world. | Source: AP Photo/Michael Probst

Senior analyst at Oanda Edward Moya thinks there’s more pain to come.

Risk aversion appears here to stay as investors become more fearful that this could be the worst global recession during peacetime… Volatility was supposed to start to calm down as central banks unleashed … liquidity programmes and stimulus, but coronavirus updates in Europe and the U.S. continue to suggest we are nowhere near being out of the woods.

Democrats Block Coronavirus Stimulus Package

The Federal Reserve has already unloaded every monetary policy in its barrel. Now all eyes are on Congress for a fiscal response. But the Trump Administration’s $2 trillion rescue package was blocked by Democrats last night.

Speaker of the House of Representatives Nancy Pelosi said Democrats would write their own bill in response. Many have criticised her decision for playing politics in a national crisis. Mark Levin said it was ‘sickening’.

People are sick and dying and Pelosi is playing games. Apparently the TRILLIONS the Republicans want to spend isn’t enough. Sickening.

The financial markets are unlikely to find any relief until Congress passes the stimulus package.

Dow Jones: Brace For 9 Months Of Pain?

Hopes for a quick recovery in the coronavirus pandemic were also dashed by New York governor Andrew Cuomo last night.

New York Governor Andrew Cuomo has warned residents to brace for a rough 2020. | Source : Spencer Platt/Getty Images/AFP

He told New Yorkers to expect up to nine months of social distancing measures. He added that 80% of the state could become infected before this is over.

This is not a short-term situation. This is not a long weekend. This is not a week. The timeline, nobody can tell you, it depends on how we handle it, but between 40 and 80 percent of the population will wind up getting this virus.

If he’s right, the damage to the economy may be much larger than the Dow Jones is currently pricing in. The financial capital of the world is about to overtake Italy in terms of infections per capita.

Is The Stock Market Ready For -50% GDP?

We’ll begin to know more when the hard data comes in. GDP and unemployment numbers will give us a glimpse into the true impact on the U.S. economy.

The early signs don’t look good. Last night, Fed President James Bullard warned investors to expect a 50% drop in GDP and as much as 30% of the American population unemployed.





Ben is a journalist with a decade of experience covering financial markets. Based in London, UK, his writing has appeared in The Huffington Post.

 

 



 

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Re: Stock Market Sell off

Postby Zero_Sum » Sat Mar 28, 2020 4:28 pm

It amazes me people are just now starting to notice things like this shit is new, it's not, I've been following this shit since since 2007. Get on my fucking level man... 8) :evilfun: :lol:

You guys are really late to the fucking party.
"I'm sorry, but the lifestyle you've ordered that you've grown accustomed to is completely out of stock. Have a nice day! "-$$$

“Assuming one can never leave permanent social exile and alienation keep on living only to observe the total collapse of entire societies, nations, or civilizations where afterwards in the inevitable chaos revel in its total destruction taking satisfaction within it as a casual witness. Let it all burn and come crashing down in a festival or spectacle orgy of violence.”-Myself

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