Stock scream room

[Cortopassi]

It might be too early to gauge but stocks going down have the least emotional stress on me versus losing money on bonds and gold.

It might be a possibly irrational belief that they will always go up in the long run and don't feel that way at all about bonds and gold.

Same with me.

[Mr Vacuum]

Where are the tweets? Where is Trump? Aren't the democrats, illegals, someone somewhere responsible for this HUGE stock market drop?

Here's your tweet, corto. I can't tell who he's blaming after all.

https://twitter.com/realDonaldTrump/sta ... 8968622086

In the “old days,” when good news was reported, the Stock Market would go up. Today, when good news is reported, the Stock Market goes down. Big mistake, and we have so much good (great) news about the economy!

[ochotona]

SP500 below 200 day moving average. Trendfollowers will start selling...

[Mr Vacuum]

Matt Levine on Feb 6. The market fell further after he wrote this, but if you enjoy his column this was the perfect take following on his previous segments on market volatility. (All his columns last week were enjoyable, on various topics)


https://www.bloomberg.com/view/articles ... ock-market

People are worried that people aren't worried oh wait no.

On November 30 of last year, the S&P 500 Index closed at a new all-time high of 2647.58, up 18.3 percent for the year thus far. Two days earlier, Bloomberg Markets had published "What to Worry About in This Surreal Bull Market." "Equities keep hitting record highs and volatility hovers near historic lows, all while geopolitical tensions abound," the article began, and then it compiled worries from investors and strategists and pundits who worried that the party would eventually have to end. Would leveraged quant-fund unwinds finally bring down the long bull market? "Some sort of cyber event"? Weaknesses in China's financial system? Stresses to stock-exchange closing auctions? Over-reliance on index funds? Contagion from a Bitcoin crash? Concentration in repo markets? Really anything was possible; a long period of calm optimism had given people a lot of free time to imagine horrible counterfactuals.

Yesterday the S&P 500 closed at 2,648.94, a hair above where it ended last November.

So what to make of it? If you slept through December and January and last week and, above all, yesterday, and you woke up today to find the market up 0.05 percent over the last couple of months, I suppose you might conclude that the surreal bull market had quietly sputtered out. You might go back and re-read that list of worries and be like, well, sure, this list of worries is worrying, I can see why the market stopped being so uniformly optimistic, perhaps an even mix of optimism and pessimism is warranted and stock prices should drift up more slowly than they have been for the past few years.

Of course that was not the experience you had if you were awake for the last couple of months.

[ochotona]

Nikkei down more than 2% now. Space junk will be circulating around the globe. See you all tomorrow at 9:30 AM Eastern!

[eufo]

I gotta say, I'm actually embracing this correction. I was worried at the beginning, now I'm at acceptance.

[Kriegsspiel]

Nikkei down two plus?
To Aokigahara
those traders will trudge

[Mr Vacuum]

Nikkei down two plus?
To Aokigahara
those traders will trudge

Nice one. I’m still grinning about the It’s Happening! gif from last week.

[dualstow]

I gotta say, I'm actually embracing this correction. I was worried at the beginning, now I'm at acceptance.

Same here. Well, I wasn't worried, but I wasn't thrilled.

[Kriegsspiel]

I don't really know what to do with this information, but it looked fun enough to share.

[ochotona]

Fun like the Norovirus. If we get a bear market with margin calls and forced redemptions, we get a negative feedback loop powering the market lower.

[eufo]

I love my cash, I love my cash, I love my cash...

Seriously, though... I do.

[Kriegsspiel]

Fun like the Norovirus. If we get a bear market with margin calls and forced redemptions, we get a negative feedback loop powering the market lower.

Ocho gets it.

[Kriegsspiel]

I love my cash, I love my cash, I love my cash...

Seriously, though... I do.

I like cash too. I think if I wasn't down with the PP philosophy, I'd naturally drift towards something like the Larry Portfolio/Nassim Taleb Barbell philosophy.

[boglerdude]

where do brokers get the $ used for margin loans?

[eufo]

where do brokers get the $ used for margin loans?

I'd imagine it's created and lent the same way a bank might do, but I really have no idea.

[ochotona]

where do brokers get the $ used for margin loans?

I'd imagine it's created and lent the same way a bank might do, but I really have no idea.

I don't know either, but everyone has a little cash in their brokerage accounts, maybe they re-lend that out.

[ochotona]

Copper is below 200 day moving average first time since 2016 election. Suggests slowing world economy.

[ochotona]

Lance Roberts is trimming is equity allocation from 60% to 45%. He's a local Houston guy who is getting more widespread credibility.

http://realinvestmentadvice.com/the-mar ... d-03-23-18

[barrett]

Anyone putting in buy orders this afternoon?

[bedraggled]

Dow 30, Dow transports and the S & P 500 are each below Dow theory sell signal. Must wait for the close. This is for a VP, I guess.

[dualstow]

Anyone putting in buy orders this afternoon?

Every week. (US$500 only)

[ochotona]

I don't know. I tried to catch the falling crude oil knife in late 2014. It ended badly.

[buddtholomew]

Bought IJS 10 min before close.
Stock portion of PP is now 55/45 S&P 500/iShares SCV.
I can only do this because other assets in the portfolio are mitigating the losses.

Purchases YTD (PP+VP)

SCV
REIT
TLT
VBTIX (Total bond market)

[ochotona]

It's quiet here... Maybe TOO quiet...