The market seems to be selling-off on the back of limited bad news imo, apart from the dollar that is.

If you can hold your nerve and apart from any short term requirements to offload poor performing stocks, I have a couple!!, my advice would be sit tight. This does not have the feel of the tech(mining!) bubble at all. Difference being there are a lot of good fundamentals, unlike in 2000 when there were a lot of over rated nothing companies.

.......ummmm

The DOW and the SP 500 will both go down this week - the DOW by  at least  500+ pts - maybe nearer 900.
Fact is, the sub-prime boil has hardly been lanced.  Still pretty much just scratching away at the sore just yet
- and there's a whole load of puss to be shed before things even begin to start looking healthy again.
Don't fool yourself into thinking there's an easy few bob to be made.  We're talking years here guys - not just days.
Bounces??   Ha-Ha.  Dead cat at best.

Think Ian T needs to look at this thread, are you trying to panic people ET and do you have a short on FTSE? i'm not saying it won't drop further but you do not need to put this in red... we are adults...

I think it is very difficult to tell how serious things are. Here's a link to long term capital management that failed spectacularly in 2000.
http://en.wikipedia.org/wiki/Long-Term_Capital_Management.
The key facts to me were that they went beyond their centre of expertise when the arbitrage opportunities dried up and got bailed out to the tune of approx. 4 billlion, quite a small some compared for example withe allianz boots takeover. Today there are 9000 hedge funds all trying to justify 20% fees by making huge profits from shrinking opportunities. Their black box trading can't deal with extreme market volatility and when they get margin calls they have to take the loss and sell primary assets. The chain of debt is difficult to fathom. Cash, short positions and solid low pe stock with minimal exposure to debt obligations seem to be the best course of action imo

AdieH. Your post is the offensive one. I'm entitled to put my views and what does it matter if they are in red, black or sky-blue-pink. It's posts like yours that cause people to panic. Grow up!

p.s. I never short any stock or index.


For anyone who missed the thread AdieH finds so offensive, here it is:


Wise up guys. This situation is a WHOLE lot worse than you seem to be allowing your intelligence to realise.
I've been telling you since May (see thread 'costly lessons to the wise') that huge market problems were clearly on the way.
Any so called "bounce" will be clearly marked "DEAD CAT" and will last seconds rather than hours.
The FTSE 100 still has a long way down to go yet and will test the 5000 mark before finding itself in a position to start climbing again.
This may not be sweet music to muffled ears but there you go.    "Leave the falling knife for other fools to catch"   is my advice.




US loan crisis set to claim fresh victims

Read full article here




Hedge fund panic was behind global stock markets collapse

Read full article here




Don't plunge back in until Warren says it's safe

Read full article here




We have seen a lot of small fish brought to the surface, but we are waiting for the whale.
That will mark the low point. I would like to see one final shake-out.

Read full article here

for all that, F/E seems to have responded positively to latish recovery on Wall Street ..... Dow having indicated -39 earlier is currently +40

It appears to me several stocks are bouncing off increasingly stronger support levels, TMC has now been up and down from 210p level, CRA around 46p and TAN is holding the 150p etc, whether they will continue to hold in the event of 6000 being well and truly breached is another matter...

A very good discussion of the market falls of the last three weeks on this mornings Wake Up To Money on Radio 5.

Well worth a listen on the net if you missed it http://www.bbc.co.uk/radio/aod/mainframe.shtml?http://www.bbc.co.uk/radio/aod/

Mickey Clark, David Jones Etc.

Anyone know if DOW futures are expected to be up or down this afternoon?

dow futures up 70

Thanks.
U.K. stocks should hopefully nudge up a little more then, imo.

Harrycat, you can get US futures;


here


......and here;

turning nasty again , the dow 10 day chart is a classic pattern , lets see if they can hold the line

Thanks, e t. Appreciated.

One big problem with this Sub-Prime situation is that even some of the institutions don't seem to know the extent of their own liability, given that it would seem to undermine every thing about market movements at the moment....I will continue in cash.

so diff to judge markets at all at the moment ..... ran a modest FTSE short o'night, but with market looking more stable this morning, took the profit (better than a poke in the eye with a sharp stick) ...... within the last hour, FTSE has tumbled again, primarily i guess through fear of what latest US figures will throw up ..... if that fear is at least relatively unwarranted, then the turn-around (or at least immediate reaction) will also be sharp

Concur!

Australian hedge fund Basis Capital also said Wednesday that losses at one of its funds may exceed 80 percent because of further credit deterioration.

Basis Capital was believed to have had around US$1 billion under management before the blow-up in credit markets.

With the dollar/yen (among other yen crosses) continuing to fall, I guess the carry trade worries are back on the horizon..... I'm sure there was a level when it becomes painful to hold, so it might cause more forced liquidations.

Strawbs.

I havent read any of the lastest posts, but as ever I remain a bull. Results are still good if not the best ever for a lot of companies. PE's of the top fste350 are good and certainly not expensive. If I had the money (which i havent) i would be buying quality fste 350 stocks (excluding banks, insurance, supermarkets and water). Good luck what ever you choose to do.