Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
Central Banks May Ramp Up Gold Buying - 18th Apr 21
How to Get Rid of Driveway Weeds With Just WATER! 6 Months later NO Weeds, Ultimate Killer! - 18th Apr 21
State of the European Markets - DAX, FTSE, CAC, AEX, SMI, IBEX 35, S&P/MIB, Euro Stoxx 50, RTS - 18th Apr 21
Einvestment Fund: What You Need To Know About Investments - 18th Apr 21
Google Alphabet (GOOG) AI Deep Mind Stock Trend Analysis - 17th Apr 21
Stocks and Bonds Inflationary Slingshot - 17th Apr 21
Best Smartphone Selfie Stick Tripod Review by ATUMTEK Works with Samsung Galaxy and Iphone - 17th Apr 21
How to Give Budgie's First Bath | Easy Budgie Bathing and Water Training with Lettuce - 17th Apr 21
Record-breaking Decrease in New Passenger Vehicle Sale in Europe - 17th Apr 21
US Stocks Climb A “Wall Of Worry” To New Highs - 16th Apr 21
Gold’s Singular Role - 16th Apr 21
See what Anatomy of a Bursting Market Bubble looks like - 16th Apr 21
Many Stock Market Sectors Are Primed For Another Breakout Rally – Are You? - 16th Apr 21
What Skyrocketing US Home Prices Say About Inflation - 16th Apr 21
Still a Bullish Fever in Stocks? - 16th Apr 21
Trying to Buy Coinbase Stock on IPO Day - Institutional Investors Freeze out Retail Investors - 15th Apr 21
Stocks or Gold – Which Is in the Catbird Seat? - 15th Apr 21
Time For A Stock Market Melt-Up - 15th Apr 21
Stocks Bull Market Progression Now Shows Base Metal Strength - 15th Apr 21
AI Tech Stocks Buy Ratings, Levels and Valuations - 14th Apr 21
Easy 10% to 15% Overclock for 5600x, 5900x, 5950x Using AMD Ryzen Master Precision Boost Overdrive - 14th Apr 21
The Current Cannabis Sector Rally Is Pointing To Another Breakout - 14th Apr 21
U.S. Dollar Junk Bond Market The Easiest Money in History - 14th Apr 21
The SPY Is Nearing Resistance @ $410… What Is Next? - 14th Apr 21
The Curious Stock Market Staircase Rally - 14th Apr 21
Stocks are Heating Up - 14th Apr 21
Two Methods in Calculating For R&D Tax Credits - 14th Apr 21
Stock Market Minor Correction Due - 13th Apr 21
How to Feed Budgies Cucumbers - Best Vegetables Feeding for the First Time, Parakeet Care UK - 13th Apr 21
Biggest Inflation Threat in 40 Years Looms over Markets - 13th Apr 21
How to Get Rich with the Pareto Distribution - Tesco Example - 13th Apr 21
Litecoin and Bitcoin-Which Is Better? - 13th Apr 21
The Major Advantages Of Getting Your PhD Online - 12th Apr 21
Covid-19 Pandemic Current State for UK, US, Europe, Brazil Vaccinations vs Lockdown's Third Wave - 12th Apr 21
Why These Stock Market Indicators Should Grab Your Full Attention - 12th Apr 21
Rising Debt Means a Weaker US Dollar - 12th Apr 21
Another Gold Stocks Upleg - 12th Apr 21
AMD The ZEN Tech Stock - 12th Apr 21
Overclockers UK Build Quality - Why Glue Fan to CPU Heat sink Instead of Using Supplied Clips? - 12th Apr 21 -
What are the Key Capabilities You Should Look for in Fleet Management Software? - 12th Apr 21
What Is Bitcoin Gold? - 12th Apr 21
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21
The History of Bitcoin Hard Forks - 10th Apr 21
Gold Mining Stocks: A House Built on Shaky Ground - 9th Apr 21
Stock Market On the Verge of a Pullback - 9th Apr 21
What Is Bitcoin Unlimited? - 9th Apr 21
Most Money Managers Gamble With Your Money - 9th Apr 21
Top 5 Evolving Trends For Mobile Casinos - 9th Apr 21
Top 5 AI Tech Stocks Investing 2021 Analysis - 8th Apr 21
Dow Stock Market Trend Forecast 2021 - Crash or Continuing Bull Run? - 8th Apr 21
Don’t Be Fooled by the Stock Market Rally - 8th Apr 21
Gold and Latin: Twin Pillars of Western Rejuvenation - 8th Apr 21
Stronger US Dollar Reacts To Global Market Concerns – Which ETFs Will Benefit? Part II - 8th Apr 21
You're invited: Spot the Next BIG Move in Oil, Gas, Energy ETFs - 8th Apr 21
Ladies and Gentlemen, Mr US Dollar is Back - 8th Apr 21
Stock Market New S&P 500 Highs or Metals Rising? - 8th Apr 21
Microsoft AI Azure Cloud Computing Driving Tech Giant Profits - 7th Apr 21
Amazon Tech Stock PRIMEDAY SALE- 7th Apr 21
The US has Metals Problem - Lithium, Graphite, Copper, Nickel Supplies - 7th Apr 21
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit - 7th Apr 21
S&P 500 Fireworks and Gold Going Stronger - 7th Apr 21
Stock Market Perceived Vs. Actual Risks: The Key To Success - 7th Apr 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Stock Market Crash Around The World In 11 Minutes!

Stock-Markets / Financial Crash May 07, 2010 - 02:58 AM GMT

By: David_Grandey


Best Financial Markets Analysis ArticleWhy are we saying 11 minutes? See the waterfall from about 2290 on this index? It took 11 minutes to go from there all the way around the world and back again in 11 minutes.

Given today’s action in the markets we thought we’d take a few moments to give you our version of an update given the extraordinary events of the day.

As we’re sure a lot of you already know by now that a big piece of today’s sell off was an erroneous trade.

Ok we get that however, the market was already down quite a lot before this around the world in 11 minutes took place.

Over the last few days we’ve been talking about the overbought nature of the markets.

We’ve talked about the negative divergence out there.
We’ve talked about how extended the leaders were.
We’ve talked about trendline breaks to the downside.
We’ve talked about support levels that were broken.
We’ve talked about coming down to the 50 day average.

All of this we’ve talked about in advance of today’s action.

We’ve stressed not to chase stocks and now you know why.

We’ve talked about never biting off more than you can chew with regards to position size trade management. And now you know why.

So you see regardless of what has been happening out there we are more interested in managing risk than we are in touting hot stocks and 100-500% returns like a lot of other websites and newsletters.

On numerous occasions we’ve talked about having some short exposure as a hedge via Inverse ETFs and YES, we know a lot of you out there do from the emails we’ve received over the past month or so. Nice Job folks! You know who you are.

So what does this all hold for tomorrow? We do have one concern and that is what this does to the psyche of the average investor for tomorrow’s open. It’s the chicken little, “the sky is falling” scenario.

Our other concerns going forward over the next 48 hours is that of the overseas markets action tonight. May not be pretty.

“This is the Information Age” and things happen real fast, so expect another wild day Friday.

A retest of the lows of just before the “Around the World in 11 minutes would not surprise us nor would the S&P 500 gapping up 10-15 points either. If the S&P 500 were to gap up like that? Would we be buyers? Absolutely not as it will probably get sold into.

We’ve said the last few days we wanted to see some stabilization and that is still the case. What we want to do though is use the volatility to our advantage. Should we have a spill over from the overseas markets in the morning due to a gap down trap door?
Well? We’d consider buying in the face of some of that fear. One doesn’t have to go full tilt but we’ll nibble and pick some off here and there into that tomorrow. As far as we are concerned the uglier the open tomorrow the better.

What about my current portfolio ? What about my 401K ?

Well what’s done is done. Actually in a weird sort of way it’s good that this is taking place really fast as it gets it out of the way. We just lost a lot of points and we are going into a weekend not to mention we have the overseas markets to contend with. Our indexes have really lost a lot here already so odds favor baring some unforeseen European event we are a heck of a lot closer to being due for a bounce than we were two days ago. While not pretty it is what it is and you might as well just let it go through its gyrations. It’s where we were back in October, 2008 and patience was certainly a virtue then.

You can look at the market a few ways right here.

1. You can get emotional and hit the sell button AFTER we’ve already dropped, and dropped a lot, so that doesn’t make a lot of sense.

2. You can choose to gut it out and deal with the emotional volatility till we get a bounce then you can consider gettting out of some. Sometimes the attitude of “Whatever” is a just what the doctor ordered.

3. You can use it to do some selected buying as after all our motto is “We Do Not Chase Stocks, We let Them come to us” That means buying in the face of fear, the hard part is how much fear? Down 200? Down 300? Heck had you been able to get an order in on AAPL when it was 216.00 within 5 seconds it went to 226.00 We kid you not.

Of course all this does not take into effect of unforeseen news driven events but you have no control over those anyway. That’s where risk management in terms of the size of your positions comes into play.

When in doubt stay out

That cliche isn’t always a bad thing you know. Should the markets implode? Well if you have short positions peeling a little away on strength may not be a bad thing. As for shorting? Understand you are in a high risk environment. We mean after all we’ve been falling sharply for going on 4 days now.

All in all the good news is we’re probably 90% done with the recent what’s became a severe downswing. The bad news is? The last 10% can be the worst emotionally. But we’ve been through it before.

By David Grandey

To learn more, sign up for our free newsletter and receive our free report -- "How To Outperform 90% Of Wall Street With Just $500 A Week."

David Grandey is the founder of All About Trends, an email newsletter service revealing stocks in ideal set-ups offering potential significant short-term gains. A successful canslim-based stock market investor for the past 10 years, he has worked for Meriwest Credit Union Silicon Valley Bank, helping to establish brand awareness and credibility through feature editorial coverage in leading national and local news media.

© 2010 Copyright  David Grandey- All Rights Reserved Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

© 2005-2019 - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.

Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules