Wall Street's revenge?

[LuckyTheDog]

I am not one for conspiracy theories. But is it just a coincidence that the stock market is in correction mode just as Washington is about to pass Wall Street reforms?

I think it's worth asking. Is Wall Street lashing out at America?

[marmar]

1. More likely, the fantasy economic recovery has been exposed.

nt

[LuckyTheDog]

2. No, the recover y is real. The numbers are there. (nt)

[Bluenorthwest]

7. Well those numbers must be somewhere

They sure are not in your post.

[LuckyTheDog]

9. Do you read the news?

GDP is climbing:
http://money.cnn.com/2010/05/19/news/economy/Federal_Reserve_meeting_minutes/

And the economy is creating net jobs again:
http://money.cnn.com/2010/05/07/news/economy/jobs_april/

[Statistical]

3. No just a perfect storm.

EU issue, rising dollar, dropping global demand, risk of Europe going back into recession, China in danger of inflation, Chinese central banks slowing economy, unemployment claims getting worse, financial reform hurting profitability of banks, flash crash, widening economic damage from Gulf spill, German banks banning short selling (what else do they know?)....

Kinda a lot hitting the market in the span of 2 weeks. Most people (myself included) are taking a wait and see attitude.
Month ago I was 20% cash, 20% bonds, 60% stocks/options/futures (risk assets).
Today I am 40% cash, 30% bonds, 30% risk assets.

Declining market hurts but holding cash in declining market makes it less painful (can always buy back in at much lower prices).
Due to headline risk I don't see short term traders wanting to hold stocks over the weekend so I think we can go lower today.

[BeFree]

5. Me too

Wait and see. I'm sure the criminals who have ripped off the pensions, etc. will have charges brought against them any day now.

[KharmaTrain]

4. Watch It Bounce Back...

It's not like this bill was a surprise...the banksters knew its coming and from all reports, it's a lot milder than it could be. They can still play their derivitive games, charge whatever interest rates they want and gamble with despositos and investors money with little real transparency...much of what was passed was a slap on the wrist and the legislative equivelent of a "stearnly worded letter". Be assure there are the "smartest kids in the room" already picking through the loopholes.

A 300 point drop is bad but far from a collapse. Much of the volitility is due to the ongoing European economic mess and will quickly turn around as more people who had rode the Euro a couple years ago are bailing on it and going back to the dollar. The drop in Europe one day is a gain on the American side the next.

Watch for a Friday rally as the bottom feeders come in and the market finishes off the week pretty much where it began. Right now the market is moving sideways and has been for the better part of a year.

[Statistical]

6. What?

Watch for a Friday rally as the bottom feeders come in and the market finishes off the week pretty much where it began.

The market began week with S&P500 at 1140 it is 1060 now. It would required a 7% rally to get back to where week started.

Right now the market is moving sideways and has been for the better part of a year.
What sideways market? It has been pretty much a downward move since the peak @ 1219. We have fallen 13%. Generally a move of +/-10% isn't considered a sideways market.

[Dogmudgeon]

8. Wall Street is a headless monster

It lacks the ability to conspire, or to even "lash out".

Which is EXACTLY why we must keep it under effective regulation.

--d!

[moondust]

10. Makes you wonder.

Europe also having market and Euro problems as Angela Merkel enacts regulations. Hard to tell how much is fear and uncertainty and how much is "punishment."

:shrug: