Dow Surges 400 Points

[KFC911]

In March of '80....I was in Ft. Lauderdale, spring break... wasn't paying much attention back then either

I now have the same exposure as way back when....and life's been good to me so far...

I suspect many of us old farts have reduced their equity positions too...permamently.

[sammyg2]

Wild ride today. Down as much as 800 points at one time, and got back all but 80 by close.
I'll be in the stands eating popcorn until this gets under control.

Day's Range 24,242.22 - 24,951.01

[wdfifteen]

Originally Posted by cabmando

I believe we need to get rid of computer trading. This **** is getting nuts. The market the other day went up based on nothing solid and is now dropping based on nothing solid. Computer sees "trade war" or "tariff" or sees the word "recession" and it triggers a selloff. OH GOD! The yield curve on the two year and five year is inverted! Run for you life!! Some Chinese CFA got tossed in the slammer! Run for you life.

The emotional/fear responses you cite are the opposite of data driven computer trading. The computer doesn’t see ‘trade war” or “recession,” it sees numbers.

[KFC911]

Speaking of numbers...equities are STILL over valued...artificially juiced imo, with no other viable option for a long time. They were the day T was elected, but"emotion" and more juice was in play and up they went. Now reality sits in....when the FED rates get back to "normal" and all this tariff bs wanes...I'll think about getting back in...mebbe???

Meanwhile...a 4% return on "safe", short duration CDs & Corp bonds is where I'll be parked...I sleep well and will check on things a year from now...gonna be chaotic for some.

Good luck everyone...

[KFC911]

I just glanced at the current Treas. yields on Fidelity...holy moly....I'm going ice fishin'

They can't be right...???

[cabmandone]

Originally Posted by wdfifteen

The emotional/fear responses you cite are the opposite of data driven computer trading. The computer doesn’t see ‘trade war” or “recession,” it sees numbers.

I'm not sure that's accurate. As I understand it from reading a bit about it, the algorithm keys on certain things that can potentially cause a decline in the market. If it then sees the market start to slide, it begins to sell.
As I understand it, an algorithm can actually be created to read news headlines, determine the likelihood of of a market fluctuation and within milliseconds of the market fluctuation start selling based on what it sees. The computer is actually reacting to certain keywords in a given cycle that might indicate a drop or increase in the market.

[KFC911]

Serious question....Is China behind this? They sure hold enough to do so....in theory.

[cabmandone]

I suppose it's possible but I'm not sure how it would help them much since our markets and theirs are fluctuating from what I have read.

[Sooner or later]

Why would they want to hurt the economy of their #1 customer?

[cabmandone]

Because we're hurting theirs.

[Sooner or later]

Employment numbers and non farm payroll out at 830 eastern this morning

[KFC911]

Someone look at the current yields....tell me wtf is going on? What am I missing?

[Sooner or later]

Originally Posted by cabmando

Because we're hurting theirs.

If that is the case they should follow the rules.

[wdfifteen]

Originally Posted by cabmando

I'm not sure that's accurate. As I understand it from reading a bit about it, the algorithm keys on certain things that can potentially cause a decline in the market. If it then sees the market start to slide, it begins to sell.
As I understand it, an algorithm can actually be created to read news headlines, determine the likelihood of of a market fluctuation and within milliseconds of the market fluctuation start selling based on what it sees. The computer is actually reacting to certain keywords in a given cycle that might indicate a drop or increase in the market.

I guess this wouldn’t surprise me. We have computers writing news stories, why not have computers reading them?

[Sooner or later]

Originally Posted by KC911

Someone look at the current yields....tell me wtf is going on? What am I missing?

Supposed concerns over a slowing economy and trade comflict. People dumping stocks and moving to less risky government bonds.

[KFC911]

Originally Posted by Sooner or later

Supposed concerns over a slowing economy and trade comflict. People dumping stocks and moving to less risky government bonds.

They were somewhat flat yesterday at the close...now... I have NEVER seen this....crazy ?

[Shaun @ Tru6]

Originally Posted by wdfifteen

I guess this wouldn’t surprise me. We have computers writing news stories, why not have computers reading them?

Computers only do what we, humans, tell them to do. Nothing more. Except for Arnold of course.

A computer algorithm is nothing more than Steve getting a newsflash on his phone, reading it and yelling over to Al, hey Al, looks like Ren Zhengfei just got arrested. This will impact the US-China trade war, we'll have more uncertainty for quite some time, everything is worth less now.

Those damn humans, what will they think of next.

[KFC911]

Nevermind....don't know what was going on, but the Fidelity stuff seems "normal" now...it did NOT compute

[Shaun @ Tru6]

Originally Posted by cabmando

I believe we need to get rid of computer trading. This **** is getting nuts. The market the other day went up based on nothing solid and is now dropping based on nothing solid. Computer sees "trade war" or "tariff" or sees the word "recession" and it triggers a selloff. OH GOD! The yield curve on the two year and five year is inverted! Run for you life!! Some Chinese CFA got tossed in the slammer! Run for you life.

This is funny! Thanks for the morning chuckle.

[KFC911]

Some of y'all seem to know a bit about computers...that is all