Stock market collapse in October

[SuperZ]

Buy on weakness.
Gordon is on holiday, when he returns on Monday he`ll bend over and the sun will shine once again - buy buy buy

I think Gordo and Obama were well stiched up by Bush and his dawg

[SantaClaus]

Looks like I missed all the fun on this board, whilst I was away.

The fact that the stock indices closed the week lower is significant.

Sure, there was some stupid money that bought the market when it fell and thought they were getting a bargain. That's why we saw a retest of the 5000 level.

But the politicians and central banks have run out of tricks. This baby is heading down.

[SantaClaus]

Selection of doom headlines on Bloomberg

• Companies in U.S. Cut More Jobs Than Forecast; Unemployment Rises to 9.8%
• Factory Orders in U.S. Unexpectedly Drop 0.8%, Ex-Transport Increase 0.4%
• Banks With 20% Unpaid Loans at 18-Year High as Doubts Over Recovery Deepen
• CIT Swaps Bonds in Effort to Reduce Debt by $5.7 Billion, Avoid Bankruptcy
• SEC Said to Delay Proxy Rule, Giving Banks Break From Angry Shareholders
• Stiglitz Deflation Threat Pushes Bernanke to Keep Rates at Zero Next Year
• Social Security Benefit Requests Exceed Forecasts as U.S. Recession Bites

...and the US markets bounce back.

It's called a retrace, or maybe the calm before the storm

I still remember the quote last week from CNBC: "Close your eyes and hold your nose, and buy stocks"

[Scary]

It's called a retrace, or maybe the calm before the storm

I still remember the quote last week from CNBC: "Close your eyes and hold your nose, and buy stocks"

"Citi and CIT Are Primed for Upside... I would buy them both."

[Money Money Money]

It's called a retrace, or maybe the calm before the storm

I still remember the quote last week from CNBC: "Close your eyes and hold your nose, and buy stocks"

Sorry I know FA about stocks but...

Shouldn't you be selling stocks if its going to fall? Then buy them back when its hits the bottom? or am i missing something?

Also whats the quickest way to buy/sell these stock and which ones do you suggest?

[SuperZ]

Sorry I know FA about stocks but...

Shouldn't you be selling stocks if its going to fall? Then buy them back when its hits the bottom? or am i missing something?

Also whats the quickest way to buy/sell these stock and which ones do you suggest?

Buying when it hits the bottom is down to pure luck, nobody knows when this is so buying on the way down when you think you`re getting a good value is not a bad idea. If you try to pick the bottom, most of the time you will miss the opportunity altogether and prices will already be too high when you realise you`ve missed the boat which is something many will confess to in hindsight when thinking back to March. I`ve made some good decisions this year but I confess I missed the boat on British Airways - after I told others to buy I waited a bit longer and the price suddenly rebounded beyond the point I was prepared to invest at.

As for recommendations, do you`re own research,don`t take notice of tips you read here although you can gain an insight into other peoples ideas.

Given the current market i would advise spreading the money around a bit - to different sectors.

[BlasterBates]

The key is invest over time. The other thing is if the market has dropped a lot, then it is always a good buy, yes it might drop further, but unless you're looking for short term gains then over the longterm you'll bought at a good price.

The bottom or near bottom of a crash is a steep drop caused by investors being forced to sell because they can't finance their portfolios. This categorised several big crashes. Late last year hedge funds and banks were flogging off stuff simply because clients were withdrawing funds, bacuase they had to, and they couldn' take new loans out which they used to finance their portfolios. With anyone with cash was a marvelous opp. to stiff the headge funds to buy their stuff at fire-sale prices.

Any drops now will be corrections rather than crashes, unless some major new credit problem arises. As the market weakens, tentatively buy some. But not a time to buy huge amounts. Some commodity stocks have already fully recovered and are back to pre-crash prices.

[SantaClaus]

Sorry I know FA about stocks but...

Shouldn't you be selling stocks if its going to fall? Then buy them back when its hits the bottom? or am i missing something?

Yes, the trick is to pick the turning points. Elliot Wave analysis, Price action, Divergence (momentum indicators) and Commitment Of Traders Report (COT) are all pointing to the smart money starting to sell Stock indices, oil, euro's etc and buy $$$ (selling out of risk basically). The dumb money, led by CNBC and the popular media is still buying

Also whats the quickest way to buy/sell these stock and which ones do you suggest?

I wouldnt buy/sell individual stocks, too open to manipulation. I am currently short the FTSE index via a spreadbet on an option. I have also bought Dow Ultrashort ETFs for my baby's Child Trust Fund. This is equivalent to selling the Dow with 2x leverage.

Finally a word of warning, as all the good adverts say; this is not investment advice and you shouldnt place any trades without knowing the risk involved

[Money Money Money]

Concidering I didn't understand a word of what any of you just said... I think i'll give it a miss.

Thanks though..

MMM

[SantaClaus]

Concidering I didn't understand a word of what any of you just said... I think i'll give it a miss.

Thanks though..

MMM

lol. well at least you admit you didnt understand a word of it!