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Stock market decline

Discussion in 'The Dungeon' started by sheepofblue, Dec 23, 2018.

  1. Motofun352

    Motofun352 Well-Known Member

    These 2 to 5 percent swings in a day is what has me baffled. I figure there is some one (or a couple of computers) driving this. Buy Wednesday morning and make 5% in a day, then turn around and sell short today and make another 3 %. I figure the big guys have this rigged to suck all blood out of the low lives who just have 401k's. Personally I'd like to ban computer driven trading based on algorithms that search out words in tweats or the butterfly count in East Krygistan.
     
  2. HPPT

    HPPT !!!

    Well, hopefully your 401(k) manager has a longer-term strategy and isn't trying to keep up with daily volatility.
     
  3. ryoung57

    ryoung57 Off his meds


    This. Hopefully the fund manager is smart enough to buy on the down days.
     
  4. Britt

    Britt Well-Known Member

    Listening to the "Professionals" today is a joke....they are worse than local tv weather guys...it could be sunny or cloudy..50/50 chance of the market going up or selling off, the correction is being reversed in reverse.
     
  5. Venom51

    Venom51 John Deere Equipment Expert - Not really

    Inmates running the asylum....

    Don't look for sense in the market. Company A makes money hand fist and is in the black all year...one sketchy news report about the company and the stock price plummets. Company B operates at a loss all year but the loss isn't as big as they expected...stock price jumps up 20 points. Sanity is not the markets strong point.
     
    crashman likes this.
  6. ryoung57

    ryoung57 Off his meds


    Plus, some of the hedge funds and larger companies have enough buying power to manipulate the market.
     
  7. auminer

    auminer Renaissance Redneck

    Sic 'am, dsapsis.

    :crackup::crackup::crackup:
     
  8. mpusch

    mpusch Well-Known Member

    The point is a bit exaggerated, but it absolutely makes sense. Value is almost entirely based on expectations, not historical performance (other than as one indicator for...future performance!).

    Assuming Company A and B are both going to continue on similar tracks, Company A will still be worth a heck of a lot more.
     
  9. mpusch

    mpusch Well-Known Member

    One of my guilty pleasures is reading the daily headlines about what the news attributes the market performance of the day to. Hilarious.
     
    turtlecreek likes this.
  10. Motofun352

    Motofun352 Well-Known Member

    Heard one good thing yesterday as the DOW jumped over 800 points from its low to its finish high. Ban computers from making trades for one minute from the the time the order is placed to when the trade can take effect. Turns out some of these trades take place so fast that the "normal" market is just left in the dust.
     

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