Discussion in 'Shares' started by Alan, 28th Feb, 2007.
A fairly decent fall in markets overnight.....
CNNMoney.com Market Report - Feb. 27, 2007
......."The Chinese market getting banged for 9 percent last night is only going to have a negative impact for markets across the world,'' said Michael Driscoll, a trader at Bear Stearns & Co. in New York. ``People in the U.S. have been anxiously awaiting a pullback. That may become self-fulfilling at some point.''
oooh ... I just got $50K from a property loan refinance yesterday ... it's now sitting in my margin account - was about to invest it this morning.
Now I think I'll wait and see what happens on the local markets. This should be interesting !!
With the dow dropping the 400 odd points that it did, does this present a good buying opportunity for the (Navra) US fund?
Surely this would be considered fairly volatile .
For those that have invested into this fund with borrowed monies (I'm one of them), it needs some sort of injection to kick it along.
Also did a refinance last week and invested $100K with CFS (into a couple of property funds).
Hope this event doesn't have too much of a negative impact.
I'm a long term investor anyway and expect dips and rises along the way, but would be better to get a few rises before any significant dips
In the short term it probably will. In the long term - very little.
ASX200 down 2% so far.
... oops ... 2.5% now.
Bounced at 3.4%
The Dow Jones Industrial Average suffered its worst point loss in years Tuesday, after mounting concerns about risk set off by an overnight selloff in Chinese stocks produced a rout in U.S. shares that escalated through the afternoon.
A plunge of around 200 points in just 15 minutes of mid afternoon trading left the Dow Jones Industrial Average down 546 points at its Tuesday low, the worst decline for the average in more than five years. The drop wiped out all of the index's gains on the year. The Standard & Poor's 500 Index also plunged into negative territory on the year. Both recently were down about 3% on the day after being down 4% at their lows.
Strategists who had called the morning's deep selloff orderly acknowledged that investors had become alarmed as negative sentiment snowballed.
"I think this is panic selling by people who haven't seen a move this big in years," said Jeff Shaw, head trader at the Timber Hill LLC market-making unit of Interactive Brokers Group Inc. "We haven't seen a move like this in a long time."
One indication of traders' new mood: After months languishing at or below 12 points, the CBOE Market Volatility Index, which measures volatility in stock index option prices on the S&P 500 and is a sign of investors' fear of a market drop, spiked 57% to 17.45 points. The index is heading for its highest close since the spring 2006 correction, though it's still off the record intraday high of 23.49 points seen on June 14.
Officials at the New York Stock Exchange, owned by NYSE Group Inc. (NYX), were looking into the cause of the steep drop. Volumes were extremely high, with NYSE composite volume approaching 4 billion shares and easily topping the previous record of 3.58 billion shares. Volume on the Nasdaq Stock Market (NDAQ) was 2.75 billion with 15 minutes left to trade, within striking distance of the record of 3.09 billion shares.
The drop came after the period when a circuit breakers could have been triggered and was below the level needed to trip them anyway. Trading on the New York Stock Exchange can be halted by a 10% drop - roughly 1,250 points on the DJIA - before 2:30 p.m., but trading continues if the markets drop later.
Some stock dealers said investors didn't seem to be worried enough.
"People aren't panicking," one trader said. "Maybe this is a bad thing."
It's a pity we can't see real-time unit prices for managed funds ... it would be interesting to see how they behave during trading like this.
It would be even more interesting to see data of the actual trades made by each fund (of course that would give away all their "secrets") !!
This may be it for now...
If not, the next bus stop for XJO is at 5695/5700.
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