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IBDvalueinvestin (98.74)

Stocks Crashing Hard



July 28, 2009 – Comments (7)

RTP down -9.68

DB down -8.76

PCAR down -3.32

ERX down -3.39

POT down -2.82

MOS down -2.78

X down -2.03

JST down -2.02

IPI down -1.29

APWR down -0.78

NTES down -0.70

VIT down -0.67




7 Comments – Post Your Own

#1) On July 28, 2009 at 11:52 AM, LongTermBull (87.40) wrote:

I wouldn't call this a crash.  Down days are to be expected, the market can't go up forever (though it would be nice!).

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#2) On July 28, 2009 at 11:52 AM, IBDvalueinvestin (98.74) wrote:

Watch the last hour of trading, if institutions step up to the plate to buy then that is a clue that Wed. economic numbers will be positive and that a rebound should occur on Wed. 

Last month durable orders shocked analysts to the upside.

I wonder if the cash for clunkers had any impact this time.

Plus last time the biege book came out it caused a market rally.

Jul 29 08:30 Durable Orders Jun
-0.7% -0.6% 1.8%
Jul 29 08:30 Durables, Ex Transportation Jun
0.0% 0.0% 1.1%
Jul 29 10:30 Crude Inventories 07/24
NA NA -1.80M
Jul 29 14:00 Fed's Beige Book


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#3) On July 28, 2009 at 12:24 PM, IBDvalueinvestin (98.74) wrote:

Record Sideline Cash could deploy into equities as sideline cash see improving economic numbers. Its happened in the past and there is no reason it wont happen again.

Still Plenty of Cash on Sidelines - UBS

by: FP Trading Desk June 22, 2009 

Now that markets on both sides of the border are bordering on official correction status after a week's worth of selling, investors are getting anxious for the next leg up to begin. With loads of cash still sitting on the sidelines, a little positive economic news could go a long way. "One reason markets tend to rise sharply off their lows is that there often is plenty of cash on the sidelines waiting for signals of sustained market stability," Joseph-Anthony Sawe, UBS strategist. Over the past three months, stock funds received positive inflows, coinciding with the March 9th bottom in equities. Despite the strong net inflows, there is still plenty of cash on the sidelines. Mr. Sawe noted that in 2008, investors withdrew money from equity mutual funds at a record pace, seeking safety in safer near-cash assets. In March, U.S. money market assets hit a peak of 65% of the S&P 500 market capatilization. Since then, that percentage has dropped to 47%, but that is still well above the 20% average over the last 20 years and the previous peak of 30% in the cycle following the tech wreck earlier this decade. The strategist said: Although US household deleveraging may limit the scope of a reallocation back into equities, increasing signs of economic stability could lure investors back into stocks, given the large amount of cash on the sidelines.

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#4) On July 28, 2009 at 1:05 PM, AnAmateur (< 20) wrote:

how can you tell the volume in the last hours?

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#5) On July 28, 2009 at 1:14 PM, IBDvalueinvestin (98.74) wrote:

You dont have a streamer tracking the volume in DJIA ?

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#6) On July 28, 2009 at 1:33 PM, AnAmateur (< 20) wrote:

no - what do you recommend?

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#7) On July 28, 2009 at 1:58 PM, FOCKEWOLF (< 20) wrote:

As much as I want to wave the Correction flag it`s way to early.Let`s give this a little more time. Watching the market go down is terrible when your in it and watching it go up when your out is almost as bad. So, not quite crashing, just might be the start of a normal correction?

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