Looks like the stock market bump has ended

[DavidDvorkin]

Updated: 11:32:05am ET

DJ -2.14%
28,478.25 / -622.25

Nasdaq -4.34%
11,533.13 / -523.31

S&p -2.85%
3,478.62 / -102.22

[samnsara]

1. lots on sale now!

[Johnny2X2X]

2. No idea what's going on

The markets have broken all the rules the last 6 months, been insane how overvalued they are. The DOW should be at 16,000, but it's not. A lot of money pumped in, a lot of investors not sure where to park their money.

No idea if this is it, or if it's months away yet, but when the "big" drop happens it will be unprecedented, something like 10,000 points in two weeks or less.

[Takket]

5. Maybe because of this?

I won’t lie. I don’t understand where that money went lol but I do know what a bubble looks like and this is it. Rethugs blew this bubble up to protect their God drumpf knowing how everyone assumes (wrongly) that the stock market is a measure of the economy’s health.

Link to tweet

?s=21

[2naSalit]

3. Oh, it wiill all be fine.

This is just a signal to mnuchin to give them some more of our money.

[Sherman A1]

4. Profit taking perhaps?????

[ProfessorGAC]

17. That's My Guess

The econometric purist have been saying for 6 weeks that the equity markets are beyond the upper limit of the equilibrium range.
The fed pump created a market stability then got carried away and overshot.
The purist analysts are likely telling fund managers to do some measure of profit taking, rather that waiting on a coming correction.

[Sherman A1]

20. Thanks for you input

Based upon other comments one might be enticed to jump out of a basement window...........

[ProfessorGAC]

21. You Can Jump Out Of Any Window!

There's no problem with jumping out a window.
At any height!
The sudden stop could, however, be an issue!

[Sherman A1]

28. Great Advice!

I will keep that in mind.

[Grasswire2]

6. Protect yourself if your retirement depends on the market. But....

it's going to pop.

Trump will do everything possible to keep it up til November 4.

Trillions of taxpayer dollars will be lost. Those aren't coming back. Think about the effect trickle down.

[Grasswire2]

7. Mnuchin must go to prison. nt

[bluestarone]

15. EXACTLY and they will bail and make money and

Joe will get the BLAME! Just what they did to Obama. He inherited a MESS when he was elected. Joe will have the same problem!

[BlueWavePsych]

8. Stock market bloodbath: Dow and Nasdaq plunge

"Although there is no single driver for the weakness, it seems as if investors all of a sudden realized how overbought stocks are and sold. Someone yelled fire in a crowded theater and everyone left at once," said Ryan Detrick, chief market strategist for LPL Financial, in emailed comments.

But there are also technical reasons for Thursday's decline: As US-China relations sour, investors are moving money out of tech, which could get hit the hardest from a potential increase in tariffs.

https://www.cnn.com/2020/09/03/investing/nasdaq-selloff-stock-market-today/index.html

[Bucky]

19. Ridiculous. You shouldn't comment on things you don't understand

It's a 4% drop in one day, sure. But it's up more than 10% from where it was in March. It's overvalued, probably, because Trump & the Congress threw a shitload of money at the investing class at the start of the pandemic--socialism for the wealthy. That spare cash had no reasonable investments in the force-stopped economy, so they put it into liquidable assets pending the inevitable recovery. If anything, a teensy correction like we're seeing this week is sign that they're expecting a moderate recovery in the next couple of quarters.

[ProfessorGAC]

22. Indeed!

A 3.5% correction to an overvalued market, even taking place in a single day, is not a bloodbath.
It was a modest profit taking by fund managers (advised by their econometricians) to max profit from buys at the low point before a period of correction toward economic equilibrium.
Not a bloodbath. Not carnage. A profit taking hedge in anticipation of zero or negative trendlines.
Good call!

[BlueWavePsych]

23. "We Should Be Concerned" - Fed Spooked By Biggest Market Crash Since March

The Dow down over 1000pts at its nadir



It appears bonds were right after all...



https://www.zerohedge.com/markets/we-should-be-concerned-biggest-market-crash-march-frightens-fed

[BlueWavePsych]

24. Time to Short this market? SPDN? SDOW?

Maybe to early to catch a falling knife? I'll give it three trading days to see if momo holds up.

[beachbumbob]

9. its on bailing wire and bubble gum since the FED has artifically support the market

[Wellstone ruled]

10. Appears we are seeing the effects

of two stocks going split.

And yes,the Stock Market is not the economy. 7 trillion of our taxpayer dollars are propping this bloated pig up. Appears,the Wall Street people were counting on a massive Stimulus that was to happen by the 15th and are just realizing there will not be any free money until maybe October 15th.

[gibraltar72]

11. The problem with theory of the bigger fool.

Eventually you run out of fools.

[Doodley]

12. Dow and Nasdaq had grown 10% just in a month up to yesterday. The market

can easily have a correction and still be trending upwards.

[stopdiggin]

14. Thanks. Perspective.

IMO the market(s) are overvalued -- but there's still the thing about where do I put my money if I pull out of this? Bitcoin? Sorry, nope.

[Locutusofborg]

13. Its one day

A bunch of profit taking. Never try to gauge the market based on one day, one week or even one month.

[Bucky]

16. never judge the stock market by a single day's performance

The Dow and NASDAQ have both bounced back to about where they were before the Covid tumble started in Feb/March. I do think it's overvalued. I think a LOT of that bounce back reflects the impact of Trump's massive payout to billionaires and corporations early in the pandemic. But you have to look at a lot of factors, not just what the market does one day to the next.

[ProfessorGAC]

18. +1

Above I mentioned that equity markets are above the econometric equilibrium.
The analysts know it.
Their doing some early profit taking as if they're anticipating a correction.

[BlueWavePsych]

25. Above average fear (VIX). Hmmm ...

https://www.zerohedge.com/markets/we-should-be-concerned-biggest-market-crash-march-frightens-fed

[ProfessorGAC]

26. Those Folks At CBOE Didn't Like The "Fear" Aspect

I met a couple of the developers, Brenner & Gulai, (both PhDs in economics with focus in the leverage of societal events) when I was a member of the Economics Club of Chicago.
They always liked the original name "Sigma Index" and didn't care for Fear.
They considered it more of a way to tie extrinsic, non economic events into the behavior of traders & analysts.
It's really interesting work.
Given many econometricians have declared the major indices 8-10% overvalued when compared to the upper confidence interval of the equilibrium range, they might be betting on aggressive sell behavior as a correction kicks in.
The COVID plunge was a correction, but the pandemic fears (unknown) made it go way too far. The rapid rebound was caused, along with fed money buying corporate bonds, by bargain hunters who knew it overcorrected.
Those same people have likely now made a short term killing, and are equally aware that things are overpriced.
A classic case of buy low, sell high. To the extreme. We might be seeing 30% gains in 5 months!
If I could guarantee 30% every 5 months, I'd move every IRA dime! 88%+ per year?? Sign me up!
Of course, that's a tightrope walk, I'm not willing to take.
I'll take my 6% and be happy.

[BlueWavePsych]

27. Cheers.

I'll take my 6% and be happy.

[DavidDvorkin]

29. And now it's three days

The three-day weekend didn't help.