The Dow Jones average is, at best, an indicator of the psychological stability of the investor class. It has almost as much connection to the actual monetary value of the various companies or the economy as anything on CNBC.
Correlation, not causation. Economics, despite what all my friends with degrees in it may say, is psychology writ large.
Don’t algorithms drive the “market” today?
Back in the day(almost 3 decades ago!) when I’d listen to a Fund Manager on CNBC and he’d suggest a stock to BUY, I translated that to mean——-I have that stock in my portfolio and want to dump it at a much better price.
Conversely when the Fund Manager suggested a stock to SELL, I actually “heard”——-I want to buy that particular stock, but would appreciate a lower entry point.
5 minutes in the stock market can be an eternity.
Margin Debt is so high now, I’d like to have the data on how many margin calls happened when the Dow was down almost 1,000.
By the way, any info on the United Put Options placed on September 10, 2001????
Right, but as you note, it was because somebody wanted something… hence psychology.
6 replies on “Dow Drops”
The Dow Jones average is, at best, an indicator of the psychological stability of the investor class. It has almost as much connection to the actual monetary value of the various companies or the economy as anything on CNBC.
Correlation, not causation. Economics, despite what all my friends with degrees in it may say, is psychology writ large.
Don’t algorithms drive the “market” today?
Back in the day(almost 3 decades ago!) when I’d listen to a Fund Manager on CNBC and he’d suggest a stock to BUY, I translated that to mean——-I have that stock in my portfolio and want to dump it at a much better price.
Conversely when the Fund Manager suggested a stock to SELL, I actually “heard”——-I want to buy that particular stock, but would appreciate a lower entry point.
5 minutes in the stock market can be an eternity.
Margin Debt is so high now, I’d like to have the data on how many margin calls happened when the Dow was down almost 1,000.
By the way, any info on the United Put Options placed on September 10, 2001????
Right, but as you note, it was because somebody wanted something… hence psychology.
FINRA Margin Debt through June 2021
What a difference a day makes!
The Dow is up 600 points as stocks snap back from Monday’s decline (cnbc.com)
As the Closing Bell rings, the Dow is off its intraday lows reportedly brought about by fears of spread of the Delta Variant and Global Tensions.