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Market’s mini crash 2011

The economic anxiety drove the DOW  down 512 point. This was a mini crash of 2011. People are comparing this to 2008 and let me tell you its nothing like 2008. I have been through 2008 and it was something else. The Dow used to swing 800 to 900 point in single event and there were no measures in place to prevent that volatility. The Obama administration has stabilized the stock trading and enforced lots of new rules and stopped abusive practices since 2008. Need to give them credit here and that is why you see small moves in the stocks and the system in general. Here is a video…

The economy is not like 2008. the factors that were effecting the economy in 2008 are not the same factors in 2011. Times have changed. A lot has changed. We have come a long way since than. We had 2 years of a bull market and lots of money was made. Corporations are producing out of the world earnings. There is 2.00 Trillion dollars cold cash sitting on S&P500 balanced sheets , hoarded by corporation who refuse to invest and hire people. Today PCLN gave stellar earnings and blew the doors off yet the stock was hammered down 40 points ! After market stock was back up to 530 levels and will go higher. So if we are doomed why these earnings coming out so strong? Go figure. As long as these earnings are strong, market will not go down. Because stocks are valued by earnings, earning multiples drive every fund managers hand.

This built up of two weeks of anxiety over Debt ceiling debate was never resolved even though the deal was done and US never defaulted, and nothing happened, but the ugly process produced such a disgusting taste in the mouth it has to go somewhere. So the investors turned to Economic data, and there were three bad reports that were looking beat up, and so out of the frying pan into the fire! Its how irrational this whole stock market is. Sometimes it never makes sense to anyone including me. How far will these people take it down? I have no idea I am  just a chart guy ask Bob Passani he knows everything.

{ 4 comments… read them below or add one }

HealthyVegan August 4, 2011 at 10:40 pm

The problem is everything in economy is turning red and no matter what you do, it isn’t going right and the more time goes the less chances it will get right. There are no jobs simple as that

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Sanford August 5, 2011 at 2:26 pm

You are so right stocks have fallen like a brick

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compound sliding miter saws August 6, 2011 at 9:29 am

Absolutely worth to bookmark this article. Lots of important information we can get in this web page. Superb!

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Hassan August 8, 2011 at 12:43 pm

This is so bad happening to Stock Market in US. Some Serious Efforts needed to make it up….

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