Stock market on Monday (PREDICTIONS)

[scandal 951]

Another day, another won .....

AUGUST 8, 2011, 11:07 P.M. ET

South Korea Shares Pounded By Morning Selling; Kospi Falls 9.9%

SEOUL (Dow Jones)--South Korean shares were hammered by waves of selling Tuesday morning, driving the main Kospi stock index down as much as 9.9% and prompting the market operator to briefly suspend program trading.

Selling dragged down most of the market, with banks and brokerages particularly hard hit. A surge of sell orders from foreign investors was the main driving force behind the selloff. At 0250 GMT the Kospi was down 8.4%.

The market is in "panic" and "making any kind of comment would be meaningless...people are throwing stocks away for bonds and cash," said a fund manager with a local asset management firm.

Program trading on the Kospi was halted from 0019 GMT to 0024 GMT as Korea Exchange tried to arrest the selling momentum. On the Kosdaq market for small caps, all trade was suspended briefly as the index fell more than 10%, the trigger for a total trading halt.

Officials convened hastily arranged meetings to discuss the turmoil.

The Financial Supervisory Service said it would strengthen its monitoring of the domestic stock market for any rumors or unfair trading and would guide brokerage firms, national pension funds and asset managers to help stabilize the stock market.

Finance Minister Bahk Jae-wan called for global cooperation to restore global market confidence.

"No individual country can adequately respond to this financial market shock on its own," Bahk said. "Given our nature as a small and open economy, we need to strengthen policy collaboration with other countries."

The steep market declines come after the Kospi lost 14% of its value over the last five trading days.

"Investors seem to be overreacting but the sentiment will likely to remain negative for the time being," said Jeon Jeong-woo, a fund manager at Samsung Asset Management. "Monitoring is all the South Korean government can do at the current stage."

Korea's stock market is prone to sharp swings when fresh concerns surface about the health of the global economy. That is because the nation's big exporters that power a large part of Korea's economy are dependent on global growth.

[웃 910]

Mostly, yes. However, there are low-frequency strategies that work and make money every day. I've seen them. They exist. They are real.

I used to love annotating different charts. I made them really pretty...Can't find any of the examples I want to show but here are a couple:

Was trying to find a few charts of the major indices with DEATH and GOLDEN CROSSES on them...I'd put the golden cross in green and death in red....It's when the 200 crosses the 50 MA (or vice versa)...Besides the flash crash which caused a fakeout death cross in 2010 the last death cross on the major indices were back in late 07 or 08 but WAYYYYY ahead of the curve in predicting a crash...Many months before the lehman bankruptcy every single index got a death cross and we are headed for one within the next month...

These are 100x34 MA crosses and of the VIX because it has been so long I can't find any of the other charts...

This 2330 line I drew from March of 2010 and only chart I have of the NASDAQ....Should be interesting cause it will definitely be tested tomorrow (closed at 2357 today with futures down 29 points putting the open right at 2330 tomorrow approx.):

Edited August 9, 2011 by Lord Infamous

[mawilson 2,133]

Another day, another won .....

They should rename their currency "lost"

[웃 910]

ETA: HOLY SH!T

Nice overnight recovery on this news:

[Bad_Daddy 2,209]

http://news.yahoo.com/oil-tumbles-below-80-amid-us-recession-fears-110733352.html;_ylt=AodHUL7x261RGskfUrIkG.p0bBAF;_ylu=X3oDMTM2ODdtNmYyBHBrZwM4NDlhODBiNC04OGVkLTMyNmQtOGExZS0xM2U2MWI4ZDk4NDIEcG9zAzExBHNlYwN0b3Bfc3RvcnkEdmVyAzkwNDc3MGUwLWMyNzgtMTFlMC1iZmJlLWI1OWI1NGU3MDU1Ng--;_ylg=X3oDMTFxNGdmMG5kBGludGwDdXMEbGFuZwNlbi11cwRwc3RhaWQDBHBzdGNhdAN3b3JsZHxldXJvcGUEcHQDc2VjdGlvbnM-;_ylv=3

Oil tumbles below $80 amid US recession fears

By GREG KELLER - AP Business Writer | AP – 2 hrs 52 mins ago

PARIS (AP) — Oil prices tumbled to their lowest in almost a year Tuesday in Europe amid a global sell-off of equities and commodities triggered by investor fears the U.S. will soon fall into recession.

Benchmark oil for September delivery was down $2.12 to $79.19 a barrel in early afternoon time in Europe in electronic trading on the New York Mercantile Exchange. Earlier in the session, the contract fell to $78.09, the lowest since September 2010. Crude fell $5.57, or 6.4 percent, to settle at $81.31 on Monday.

In London, Brent crude was down $2.05 at $101.69 per barrel on the ICE Futures exchange.

A downgrade of U.S. debt one notch from AAA to AA+ by Standard & Poor's announced Friday sparked investor panic this week. Oil traders often look to equities as a barometer of overall investor confidence, and Monday the Dow Jones industrials plunged 634.76 points, or 5.6 percent, the sixth-worst point decline for the Dow in the last 112 years.

Most European stock markets were sharply lower Tuesday, on the back of steep losses in Asia overnight.

By midday Germany's DAX was down 3.3 percent at 5,724 while the CAC-40 in France was 1.1 percent lower at 3,089. The FTSE 100 index of leading British shares was down 1.8 percent at 4,976.

U.S. stocks were also poised for further falls at the open, a day after the Dow Jones industrial average fell a dizzying 634 points. Dow futures were down another 0.9 percent at 10,625 while the broader Standard & Poor's 500 futures fell the same rate to 1,099.

"It's clear we're entering, or are on the precipice of, another global financial crisis," said Richard Soultanian, an analyst with NUS Consulting. Soultanian expects crude to fall to between $55 and $60 before rebounding to the mid-$70s in the fourth quarter.

Investors will be closely watching the latest consumption forecasts from OPEC and the Department of Energy scheduled to be released later Tuesday. Traders will also be looking to the U.S. Federal Reserve to calm markets and possibly announce another round of monetary stimulus.

The Fed has already twice implemented a program of Treasury bond purchases, known as quantitative easing, since the 2008 financial crisis.

"The way prices are falling, especially on stock exchanges, they are likely to keep falling until the Fed unveils some new program," energy consultant Cameron Hanover said in a report. "There are very few options available, but this is threatening to be a complete meltdown."

Some analysts argue strong crude demand from developing countries such as China should help stabilize oil prices. Most companies and consumers have less debt than two years ago, which should help lower the risk of global economic growth slowing sharply, energy analyst and trader Blue Ocean Brokerage said.

"We can all take a chill pill and understand this is not the recession of 2009," Blue Ocean said in a report. "All of this rumbling that demand can falter from here is (nonsense). The major difference today from 2009, the world is a better place financially."

Lower commodities prices will also lower energy and food costs, freeing up consumer purchasing power and slowing inflation. Asia is a net importer of crude, and lower oil prices should give policymakers in the region more leeway to ease recent monetary tightening.

Crude has fallen 30 percent since reaching nearly $115 in May.

Still, most traders seem to be waiting for selling to subside before jumping back in.

"We have no interest in attempting to catch a falling dagger," energy analyst and trader The Schork Group said in a report. "The adage is to buy when there is blood on the streets, but timing the bottom has led to the demise of traders far greater than ourselves."

In other Nymex trading in September contracts, heating oil rose 0.3 cents to $2.80 a gallon while gasoline dropped 1.2 cents at $2.68 a gallon. Natural gas futures slid 3.9 cents at $3.90 per 1,000 cubic feet.

Edited August 9, 2011 by Why_Me

[Obama 2012 1,714]

/http://news.yahoo.co...dGlvbnM-;_ylv=3

Oil tumbles below $80 amid US recession fears

and unfortunately it's back up to almost $82.

[Bad_Daddy 2,209]

and unfortunately it's back up to almost $82.

The higher the better for Alaska. More jobs, and more money in the state coffers. That and oil can drop to $30 a barrel and nobody is going to see gas prices drop at the pumps.

[Obama 2012 1,714]

The higher the better for Alaska. More jobs, and more money in the state coffers. That and oil can drop to $30 a barrel and nobody is going to see gas prices drop at the pumps.

what on earth are you talking about...

Gas prices have always followed a barrel of oil and they have here in the past few days even.

[Bad_Daddy 2,209]

what on earth are you talking about...

Gas prices have always followed a barrel of oil and they have here in the past few days even.

When Bush was on his way out the door and oil hit $30 a barrel, we didn't see sh*t here in Alaska as far as prices dropping at the pump. A nickel here and a nickel there...nothing to write home about, and we were still getting fckd.

[Obama 2012 1,714]

When Bush was on his way out the door and oil hit $30 a barrel, we didn't see sh*t here in Alaska as far as prices dropping at the pump. A nickel here and a nickel there...nothing to write home about, and we were still getting fckd.

perhaps you should talk to your state government then?

$30 a barrel here = around $1.39/gallon... Even back in mid-late '08 when the price of a barrel fell after their all time highs we got back down to that point.

[Mr. Big Dog 10,747]

Considering the reason for the drop in oil prices, I'm hesitant to celebrate that drop.

[Obama 2012 1,714]

Considering the reason for the drop in oil prices, I'm hesitant to celebrate that drop.

Well, it's a mix really.

While stocks were going down yesterday, the dollar was slightly going up. So more people pull money from oil when the value of the dollar is going up. However the dollar is down on the day so far today, so oil is recovering some of its losses from when the market first opened this morning.

The dollar index plays a huge roll on what oil is doing. A lot of times more so than inventory reports and the little piddly ####### that spooks investors or get them rolling.

[Bad_Daddy 2,209]

What Iv'e seen in the past is; low oil prices = recession.

[Obama 2012 1,714]

What Iv'e seen in the past is; low oil prices = recession.

well, it's easy to make the correalation here in recent years especially thanks to our debt and borrowing.

The more they bastardize the dollar, the more oil prices will go up. The more things are done to strengthen the dollar, then oil prices will go down.

We've had a ####### economy the past few years, but thanks to QE1, QE2, etc. oil prices have gone steadily up.

You'll see people who talk about demand, china, japan, etc.. All of that at the end of the day is miniscule compared to what the value of the US Dollar does to the price of oil. It's almost like a trigger mechanism to the market traders.

Gold is the exact same way, however it would take a HUGE boost to the US dollar for gold to drop. The only way that could ever happen today though is if the deficit spending were to be completely erased and there was a 'hope' to pay more than just interest on the debt. Erasing the deficit would be enough to cut the price of gold in half at least, but even cutting it in half still keep it damn high when you look at where it's at.

The price of the dollar is very much weighed on the idea that it's going to be worth something to those who invest in it. The more we spend, the more we have "QE" bullshit, the lower the value goes, the higher the oil prices go, and the higher prices go for everyone. While all these so-called 'experts' all get excited about "QE," what it really is at the end of the day is a TAX on you, on me, and especially on those with a fixed budget. Suddenly when that loaf of bread jumps $1 or that galon of milk $1.25, etc.. it's not good to be in the lower income brackets.

I know i dragged on about a lot more than oil there, but at the end of the day, they are all connected.

Edited August 9, 2011 by DJ Kyo

[luckytxn 2,263]

Not bad. I expected the market to start off somewhat strong as the intervention took place and then a drop again and another intervention at the noon hour to prop up until the market fell some but not much to finish the day with only a slight loss. So far it has risen and stayed somewhat there.