Black Tuesday? Dow falls nearly 500 points

[Elurin]

Largest drop ever in the Dow Jones was 2001, when it fell 684 points. Black Monday, in 1989, marked the 2nd largest fall as a percentage of the market (1929 was the largest)

Since the market is so inflated now (was pushing 13000 before today), this won't be quite as big an impact. It is still a very large drop for a single day of trading, however.

The next week should be interesting to see if the market decides to correct itself (back to around 11,000-11,500, would be my guess) or if this is just a blip caused by China.

As of this posting, it's down 410 points with around 45 minutes of trading left. Oh, and I know Black Tuesday was already taken for the day after Black Monday in 1989, but it seems more pertinent to not name the whole week with a catchy name.

[Cowbell]

I gotta start saving some money so I can get on board once this next market correction ends.

[Soriak]

The market corrects itself every day
On another note: you can also make money if stocks go down, if you're speculating on that.

[prescient63]

Shorting stocks unless you have a extremely good information is always worse than going long. Short = unlimited losses, not likely but possible. If you want to go that route you are probably better off in a straddle as your hedged both ways.

Edit: if you own the stock its not a bad way to make dough in a sideways market/sector/stock

Anyhow world markets are fucked and I suspect the dow is going to stay down and probably fall more if China tonight was an indication. New Zealand also opened down as well as every other asia/pacific country. Singapore shut down trading early, not sure if it was due to trade volume or losses but either is likely.

edit: when i posted this i already knew the dow was due to a technical glitch which sent all the automated trading scrambling, but i bet it stays down at least for a while. A 45 month run has to end some time.

[Bralkan]

Photo Slideshow | Reuters.com

2007, year of the shitstorm? It has all the makings - Crisis in Iran, Stocks falling, Russia acting up, etc...

That's all the negative, though. Iraq did finally figure out what to do with the oil... on page two in the article it cites some markets bouncing back. So I dunno. Either way, I love fear mongering.

[Bralkan]

Computer crash = markets fall? Kstp.com

[prescient63]

Originally Posted by Bralkan

Computer crash = markets fall? Kstp.com

I didn't read the article, but yeah if the DOW falls do to a technical glitch automated trading systems are going to start firing off orders. As the sell volume increases the bid price is going to fall, and the stock price is going to fall. This will trigger yet more stop loss trading. Many hedge funds and institutional traders are run by highly quantitative models. When this sort of activity happens it fucks the models.