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Markets Crashing After-Hours...Does anyone know why?

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February 05, 2009 – Comments (12)

It's only been 45 min. since the markets have closed and yet the numbers are VERY ugly at this point.

Dow -124.00 -1.55% 7,870.00

NASDAQ -44.25 -3.58% 1,190.25

S&P -18.50 -2.20%

I haven't been able to find any reason for this (other than the obvious - that the fundamentals of our economy are in the toilet right now).







12 Comments – Post Your Own

#1) On February 05, 2009 at 5:31 PM, Varchild2008 (83.69) wrote:

Yea.. I know why....

....

....

What I don't know is why in the *&^% did the market trade up today?  Get a load of the Unemployment Numbers, the Retail Sales, the Factory Orders Meltdown lately?

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#2) On February 05, 2009 at 5:36 PM, Seano67 (65.03) wrote:

I'd expect a little bit of profit taking after an up day like today, but beyond that, I have no idea.

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#3) On February 05, 2009 at 5:39 PM, bridgeboy0 (30.66) wrote:

I don't see the market down very much at all after hours.  Not sure where you're getting your data.

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#4) On February 05, 2009 at 5:43 PM, cubanstockpicker (20.63) wrote:

varchild, the most frustating thing about these bear market rallys is that they go up on the dumbest of reasons. The homebuilders for example have gone up on average 20%, the only reason being the improvement of existing home sales. SO what does that have to with the price of tea in china? Nothing, the trend is actually agains the builders for the long haul. With over 18 months of inventory in the bigger states, az, ca, fl, nev, and with an equally long amount of time to go through the rest of the existing and new foreclosures clogging up the courts, the government will buy these assets and resell at bottom dollar prices.

Definitely not good for retail home sales where they want to charge and extra 10% for granite counters. wood cabinets and marble floors. Well why buy the new one, when the equally fitted home sold in 04 is going for 50% less than the new one?

So how does this bode for homebuilders? nothing at all, there isnt one bull reason for these stocks to trade up, but they do.

So its a bear market rally.

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#5) On February 05, 2009 at 5:52 PM, Seano67 (65.03) wrote:

So how does this bode for homebuilders? nothing at all, there isnt one bull reason for these stocks to trade up, but they do.

 

True. You can kind of throw logic right out the window here. In my opinion people are buying now based more on hope, emotion and sentiment rather than any widespread good news economically. 

 

I know the banks were up big today because people are all hyped-up over President Obama's bank rescue plan to be released next Monday I believe. That's just hope right there, the hope that this plan is actually going to work and help these banks out. I'm hopeful too, but we'll just have to wait and see. 

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#6) On February 05, 2009 at 5:59 PM, abitare (31.66) wrote:

1. Tommorrow is Friday

2. It was up today.

In a bear market, that would be normal, sell any rally.

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#7) On February 05, 2009 at 6:11 PM, retailsails (94.15) wrote:

I think you were looking at stale pre-market data from this morning...market is flat in after-hours.  There will certainly be price activity after the unemployment data tomorrow, but the market's in a wait and see mode until the full govt plan comes out...

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#8) On February 05, 2009 at 6:36 PM, JGus (28.66) wrote:

The data was from cnnmoney.com. I looked at it at 3:43 PM CST.

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#9) On February 05, 2009 at 6:50 PM, Seano67 (65.03) wrote:

After-hours trading goes on several hours, and will sometimes continue into the night. I'm watching my after-hours portfolio right now, and the banks are still going up. BAC has been steadily climbing up and now sits up .30 in after-hours trading alone. Energy: BP's been doing very well after-hours, while XOM and CVX are sucking wind. Anyway, I'm sure it's variable like that all over the board.

But you have to give it awhile. Check at like 8:00 or 9:00 PM at night, and that'll give you the full picture rather than just a snapshot of it. 

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#10) On February 05, 2009 at 6:58 PM, DemonDoug (78.88) wrote:

homebuilders have been rallying for no reason since 2006.  Real estate peaked in 2005, but HBs continued to rise in 2006.  A lot of my points came on red-thumbing HB's in early 2007 and then again in late 2007 when they rallied on Fed rate cuts.

all publicly traded HB's combined = 0 value IMO.

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#11) On February 05, 2009 at 8:55 PM, anchak (99.84) wrote:

Never pick up futures from CNN and just after market close.

You need for most Aisan bourses to open (at least Sydney and Hong Kong) - sometimes it may be dated info - or somebody with a huge hedge or a BET.

Here's the latest from Bloomberg:

I was reading the comments - its very interesting how people want to paint the picture they want to see

 FUTURES
 VALUECHANGE% CHANGE

Dow7,998.004.00   0.05

S&P 500840.10  -0.40 -0.05

NASDAQ 1001,235.75  1.25 0.10

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#12) On February 06, 2009 at 12:08 AM, gman444 (28.77) wrote:

Seems to me there is a lot of hope that the stimulus package will work positively, and particularly the Chinese stimulus which will apparently actually go for infrastructure.  Chinese have been stockpiling commodities at (relatively) low prices in preparation, BDI is picking up pretty dramatically.  

To me, all of this is false hope; it is enough to look at the shape financials are in (eg:  BAC, C), regardless of any pop up right now to seriously doubt the likelihood of any meaningful rally.  While there are some positive signs, I remain bearish, a nd think we have at least another major down leg to go before we bottom. 

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