Dow closes down 1,000 points as coronavirus fears slam Wall Street

[sandensea]

Source: CNBC

Wall Street was rocked in a volatile trading session on Monday that ended with the Dow Jones Industrial Average closing down 1,031 points — the worst day in two years for the blue-chip index, as fears increased over the global economic shock of coronavirus.

The market selloff came amid a significant uptick in reported cases of the disease in Europe, pushing investors to ditch stocks and buy up safe haven assets such as gold, which hit a seven-year high.



Read more: https://www.cnbc.com/2020/02/24/reuters-america-us-stocks-snapshot-dow-briefly-falls-over-1000-points-as-pandemic-worries-grow.html

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Traders fret over falling prices on Wall Street amid heavy trading today.

A combination of fears over coronavirus' spread into Italy, as well as already overvalued equities, contributed to the steepest loss in stocks since February 2008.

[greenjar_01]

1. "as well as overvalued equities..."

Don't let them tell ya it's just the virus.

[sandensea]

2. Exactly.

This has been Trump's bubble - and it'll be Trump's slump.

[Roy Rolling]

3. Nothing goes up forever

It’ll be interesting to see how Trump blames this on Hillary.

[onenote]

5. He'll blame it on the corona virus

And when the panic eases -- as it likely will - and the market recovers, he'll take credit for the recovery.

Folks seem to have forgotten about 2011, when the market when through a period of extreme volatility -- literally gaining and losing between 400 and 600 points a day for several days in August and continuing along the same path, albeit over a greater spread of time, for much of the year.

Sure 1000 is bigger than 600, but in percentage terms, the 635 point loss the market took on August 8 2011 was a bigger hit than today's 1031 loss.

[sandensea]

6. And China.

"It's Chiiina, folks. Can't trust'em."

[sandensea]

7. And the "Democrat scientists"

"They all voted for Crooked Hillary - you know that, right?"

"Lock her up! Lock her up!"

[Scruffy1]

19. If ever a market was a safe short this one is.

The feds have been pumping the money supply like crazy to hold the market up but just like a ponzi scheme eventually the money runs out. The only way to make a profit is to sell why you can. I think we will see a double digit correction by fall.

[bucolic_frolic]

4. Bounce tomorrow, Turnaround Tuesday

Semis were hit hard, as were ultra ETFs China and Europe.

[sandensea]

8. On the one hand, I hope you're right.

On the other, a Fibonacci-style (i.e. 38%) "correction" would effectively pulverize his one factual talking point: That the market has reached record highs.

"Best stock market ever, folks!" would start sounding stupid with the Dow back down to 18-19,000.

[bucolic_frolic]

10. The interest rate yield curve is fully inverted today, AND

10 year treasuries are at their lowest point EVER recorded - 1.33%.

More QE from the Fed. Guru on YouTube said over the weekend that factories in China are shuttered. So critical parts will be unavailable when current inventory runs out, whatever that is or means. Parts could shutter our own factories.

Didn't Trump promise to bring all the factories back from China? Yes, many, many times, I'm sure of it.

[sandensea]

12. Great point.

GOPee "economists" like to pretend certain rules don't apply to presidents from their party.

[doc03]

9. It has to go down someday I hope before

August.

[sandensea]

11. It's quite likely.

Many have pointed out that in the current bull market (emphasis on bull), from the day Cheeto was elected until the record high set on Friday, the Dow rose 62%.

As you may know, that (approximately) is the Fibonacci number - a favorite benchmark of many traders.

But Signore Fibonacci aside, God knows P/E ratios have reached bubble levels.

It's been Trump's bubble - and it'll be Trump's slump.

[doc03]

15. Trumpsters will argue the market didn't go up

until El Duche became president. I point out the market
rose 280% from its low while Obama was president they say that's bullshit. They claim unemployment never went
down under Obama but in Trump's 3 years 1.5 million less jobs have been created then in Obama's last 3 years. They claim those are fake numbers.

[sandensea]

16. Absolutely - but as you know, they're utterly immune from facts

If someone could somehow bottle that immunity, coronavirus wouldn't be an issue at all.

[doc03]

17. That's for sure

[yaesu]

13. This market has been at the dot com irrational exuberance level for a while now so any excuse for a

selloff its going to take.

[sandensea]

14. Exactomundo.

And the bull market did hit 62% (the Fibonacci number) on Friday.

It was as ripe as Trump's socks after a Mississippi rally.

[maddogesq]

18. BINGO!

Way overvalued. Cheap money and a real lack of fundamentals.

My prediciction:

1-2 Dead Cat Bounces.

Donny says it’s 44’s fault.

A 20 percent correction by summer.