Daily Investment Interpretations

August 8, 2011

2011-8-8: (Monday Night):  Whew! The Dow had its sixth worst fall in history, and the NASDAQ and S&P 500 fell even farther, percentage-wise: Nightmare on Wall Street, Market Wrap: Stocks Flushed, Confidence Erodes.   The NASDAQ Composite subsided 174.72 points (-6.9% ) to end at  2,357.69. The Dow collapsed 634.76 points (-5.55%) to close at 10,809.65; the S&P 500 drifted down 79.92 points (-6.66%) to settle at 1,119.46. Oil closed down at $77.40; gold catapulted to $1,755: The VIX leaped 50% to 48: VIX jumps the most in a session since 2007.
And tonight: Asia zooming down: Hong Kong down more than 6%, Tokyo off 4.3%. U. S. stock futures are also down again sharply, presaging another day of ruinous decline: Dow's drop and potential of new recession (video), The pros are bracing for another recession. Meanwhile, Senate panel may probe S&P.
    China prices racing up: "Chinese consumer prices accelerate further to 6.5% in July, beating expectations and keeping alive the prospect of more tightening."
    David Weidner's idea of buying short-term puts on the S&P 500 ETF, SPY, looks like a sage idea to me right now.
    Here are some additional ideas: 8 strategies for a market crash.
    And from State Of The Markets: Quick Comment: Things We're Hearing At This Hour, Technical Talk: Is This The Emotional Washout?, Moody's Reiterates Warning of U.S. Downgrade, China Takes U.S. To Task After Downgrade, OECD Says Global Slowdown Likely, President Addresses Debt Downgrade; Markets Fall, Goldman Sachs Finally Cuts Estimates for Year-End S&P, Heads Up: Margin Requirements In Flux, Reasons Not To Fear the Downgrade, and Technical Talk: Is This The Emotional Washout?