DOW Down 1,000 - a hint of things to come!

[propertymanager]

At just about 3pm today, the DOW was down nearly 1,000 points, apparently on concern that the Greek disaster will spread (who would have thunk it?)  Greece is broke.  Portugal is broke.  Italy is broke.  Spain is broke.  Europe is in a shambles.  How about us?  California is broke.  Cities and states all across the United States are broke.  The socialists have been spending like there's no tomorrow and are adding new entitlements - EVEN THOUGH WE ARE OVER 150 TRILLION in the hole on the entitlements we had before healthcare.  The only real hiring is by the federal government.  In REAL numbers, we have depression level unemployment.

I think (hope) that it's still too early for the USA to collapse, but today's market action is just a preview of things to come.  There will be a big difference between Greece and the USA.  In Greece, when they riot, only a few people die.  Here in the USA, when the economy collapses, the entitlement class (ala the Hurricane Katrina misfits) will go wild and the thin veneer of civilization will disappear.  Better stock up on food, water, and plenty of ammo - while you still can!  Consider yourself warned!!!

[allagash]

after working on my rehab all morning and early afternoon....I tuned into the charts at just about that precise moment....few minutes before 3. 

talk about falling off a cliff...

-Mike

[NoTiceViCtor]

It's down 347 points today that adds around 1,000 points for the week so far. And what I have noticed is that most Friday's seems to be DOWN   ... Also Ford is around 11.78, does that mean I have a second chance to buy more then only 20 shares?

[rookieNYC]

Market had a computer glitch that was added to by the fact the markets are toppy and profit takers are plentiful..Nevermind the glitch tripped off the black box trading systems that automatically sold/bought into the mess..Yes Greece is a concern but the market is a future indicator...Lets see where we go from here,all the same you have to sell when you can not when you have to...When your account is up %65 -%75 on the year and you dont take %50 of your holdings off the table you are a MORON...I love to sell into rallies..

[allagash]

an mp3 of yesterday's action at the S&P 500 pits:

http://www.zerohedge.com/article/panic-and-loathing-sp-500-pits

also....some pretty good comments from the readers of zerohedge.

-Mike

[Sean_L]

I'm  buying an few interest rate call option contracts. The 30yr & 10yr treasury have dropped 30+ basis points in the last week. I expect it will rise again in the next few weeks maybe next week. Cha Ching...

[jfpen]

Is anyone besides me skeptical about the assertion of a computer glitch as a reason for the selloff yesterday?

JP

[propertymanager]

I think it was more like a cyber-attack combined with the debt crisis in Europe. 

[allagash]

computer glitch

?

 

mass selloff....which kicked black box quants into overdrive as rookie pointed out.

-Mike

[John_in_NC]

Here is what I think happened yesterday,

S604, the senate version of the Audit the Fed bill, was gutted late yesterday by Bernie Sanders at the last minute and then voted on. Now of course the Obama Administration is for the audit, righ after the vote!!!  http://www.msnbc.msn.com/id/37003798/ns/business-stocks_and_economy/

I think the big guns at the FED pulled out the stops, creating a "computer glitch", which quickly reminded some very  important people who is really manipulation this show. Well it worked, and there is no longer a real audit of the FED. Coincidence? I doubt it.

I think i'm gonna go puke now.

[phlemboy]

Well the DOW had quite a run. It's 9% off its 52 wk high of 11,309. It was due for a pullback, just like anything else. I actually think we can get back down to the 9000 level. I don't think we're in for a repeat of 6500. Things are better now and getting better.  I'm sitting in cash and waiting to go shopping.. I've never shorted anything before, but I may dip my toe in and get some practice with a small amount..

[propertymanager]

The DOW HAS had quite a run - and it has all been manipulation.  The government has literally pumped TRILLIONS OF DOLLARS of money that was created out of thin air into the economy (and especially big banks, autos, housing, etc).  That is the ONLY reason that the market has gone back up to the 11,000 level.  The cost of that has been to GREATLY increase both our debt and our unfunded liabilities.  Now that the government is backing off the stimulus, the market may very well head back down (or it may not - depending on the level of government manipulation).  That's exactly the reason that I'm in cash - because normal factors do not apply to the market and I don't have any inside information from the Goldman Sachs cronies in the government or at the FED.

What I do KNOW is that the USA is hopelessly in debt and increasing that debt every day.  What I do know is that we are increasing the size and scope of government and government entitlements every day.  What I do know is the debt and unfunded liabilities mean that the US economy will collapse - the only question is WHEN!  DOW 6,500?  We'll be lucky if it's 650 after the collapse!

[rookieNYC]

wtg Mike...Cash loses %3 per year due to inflation and you are so convinced that the stock market goes to 650 and you aren't short one single stock or long one single put..Why should anyone listen to you?...

Better yet you are convinced that the market only recovered because of manipulation...If you knew this why didnt you take some of the free money?...I made %70+ and I LOVE manipulation..Just think how many cans of Green Giant %70 gains wouldve bought you..Truth is Mike your a decent guy but you dont know sh*t about the equity markets and you never will..

You didnt buy any real estate during the greatest pullback in history...
You didnt buy any stock during the greatest rally in history....
You dont own any gold during the greatest Gold rally in history....
You instead invest in Green Giant and Ruger ammo during this period...
You author a book about becoming rich buying/managing real estate....
You hate the government and the socialist programs yet you live off of section 8 tenants....

Do you think this site is full of f****n morons or what?...

[propertymanager]

Well Rookie, I notice that you didn't give us YOUR prediction or advice?  Instead of the cheap insults, why not tell us all what the market will do tomorrow, this week, or this next 6 months.  Everyone on this forum (except me) can then trade on your prediction.  BTW, I notice that you didn't contradict what I said, you just chose to attack me personally instead.  Typical.

I'll be the first to say that I do not have any connections with the federal government and I don't know which way the socialists will move the market next.  If they don't keep pumping the cash out of the cash machine, the market will surely fall.  On the other hand, they can only keep printing imaginary money for so long before confidence in the currency is lost and that will also cause the economy to collapse.

Better yet you are convinced that the market only recovered because of manipulation...If you knew this why didnt you take some of the free money?

That's a fair question.  The reason that I've been in cash for several months is because I have no way of knowing what the government will do next.  Again, if you do - please share.

As for your other silly attacks:

I bought my real estate between 2004 and 2008 following the business plan that I posted online several times and also as outlined in my book.  I am currently operating that business per my plan and have absolutely no plans to buy additional rentals.  I am not in the flipping business.  I am not in the lending business.  I am quite happy with my rental business and am happily semi-retired.

I did buy some stocks early in the rally and I posted all of my trades on here.   You'll note that I am still one of the very few people who made money on my trades because I actually bought and sold my trades (and sold covered calls).  Many others bought stock and are still holding "paper profits", which could evaporate right before our eyes.  This is the same mistake made by the millions of "investors" who paid retail during the real estate boom (which would never end); watched their paper profits skyrocket; and held their real estate all the way back down until they had a huge loss.

I don't own any gold and I won't buy it at this price - even though I do believe that it will go significantly higher in the future (as the worth of paper money goes down).  I just don't know what to do with something that's worth $1,200 per ounce.

I do believe that food, water, and ammo will become critical in the coming collapse and I think having a reasonable supply is a good move.  If you choose not to be prepared, that's your choice - but paper money is likely to be worth very little in the coming collapse.

I do despise socialism (why don't you) and I do take Section 8.  Unfortunately, Section 8 is the system that exists and I do accept your tax money as payment for the service I provide.  Doesn't seem so hard to understand to me.

 

[rookieNYC]

Mike,
 I find it comical that you choose to dodge the facts of our conversation instead you run away like a jilted 6 year old..You start threads ALL THE TIME insulting a certain voting class of people but you cant take when you are called out..Grow up...

You said you bought ALL of your real estate between 2004 and 2008..The single greatest time for real estate APPRECIATION (which means you paid the most) ...Spare me the BS that you bought during this time and paid 50 cents on the dollar..Only newbies believe this line of crap that spews so often out of your mouth...

My prediction has been the same for a while now incase you have not seen it..I have said we are due for %20 pullback in the markets and then we bounce sideways..But NO I do not feel we fold over and die like you so often predict..The socialists have nothing to do with which way the markets move..I think someone once told you you need to get laid,thats the best advice I have seen yet for you..Maybe you can find Joe the plumber in Ohio and get on your tractor and find some trailer park candidates...Surely they will share the same intelligence level because when it comes to economics you are clueless...

Semi-retired?..Once again you can fool newbies here and I have spoken with people who have seen your *rental empire*..The opinion is the same..You own dumps..They cant possibly be as profitable as you portray..Your tenants as we all know are borderline hobos/bums..We all know you are carrying 24/7/365..Thats what I call a happy retirement..LOL...Catering to your very own penal colony..WTG..And if it makes you feel better that some of my tax dollars pay for your penal colony's existence thats fine with me..You need my money to survive,you have no real rental business..You live off the state just like your tenants..Who is the socialist now?...