Markets in Meltdown

Society Business and Career
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Re: Markets in Meltdown

I think all US indexes will see bottom sometime later this year and start recovering next year.

~**~ Tussi Baray ----- Ho ~~~~ ~**~
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Re: Markets in Meltdown

so what are the "fundamentals" that market-gurus look at when investing in stock for

  1. Day-trade?
  2. Short term?
  3. Long term?
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The market gurus look at the fundamentals of the economy, the sector they are investing in and the company they are investing in.
The guys looking at day trade and short term trading are traders not investors.

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Re: Markets in Meltdown

Does that mean traders look at trend and speculate based on that (as they don't necessarily look at fundamentals)?

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Re: Markets in Meltdown

Dow dropped 283 points. Biggest one day drop for a month on the back of weak earnings and housing data.

Time Pass - March 2012
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You keep a close eye on US markets, do you invest in US markets as well?

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Re: Markets in Meltdown

If you are interested in stock markets and invest in any market than you have to keep an eye on the US market or you will suffer badly. Dow leads, others follow. Yes I do invest on US markets but mostly play the volatile futures market

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Re: Markets in Meltdown

Ehtasab Sir,
There are far too many reasons on why the market goes up or down. The basics are the indicators abt how the economy is doing which covers $ value, Oil futures, Employment reports, quaterly reports from the Giant firms etc etc. Next thing the traders see is the sectors where the market are performing well, for example Oil, Retail, banking etc....After this the traders analyse on the value of a particular company....and I am quoting my finanace professors words during by MBA days....Value of a company depends on the Profit/loss report and disregard the asset of the company...So if a firm has billions of $ in asset and has red on its yearly report means that the company is crappy. Now the big players speculate on the above indicators. 80% of the so called small traders follow suit. Warren buffet, himself researhes the value of the company before investing in it. I consider myself a momentum trader.....which is regardless of the market/economy sector, I trader with the momentum and make money. I short and buy stocks whenever my indicators tell me to. I strictly do not follow the market indicators which everybody does...and there are many S/W's on the internet which project the calls based on the market indicators. In short there are many advanced macros working on the internet which many financial analyst base their revenues from.....Its like if OIL does this and dollar does that and Gold goes UP and inflation remains constant then buy COMPANY A and SELL COMAPNY B. This triggers a huge market swing evrybody follows......Now the indicators which I found is somehow in sync with one of the algoritms above with one of the big players and give me the calls to buy, sell or short a stock. Uptill now, I am still tweaking the program which I wrote and works atleast 85% of the time. I am already beating the S&P index by 45% YTD returns.....

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Cool, if you don't mind, which s/w's have you used, and which is more trustworthy (not "con" s/w)? I haven't tried any, so I'm not sure which ones are really trying to give good triggers, which ones are worth trying etc.

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I don't use any of the S/W sold in the market and would not suggest anyone to use them too. They might make you money in the short run but when many ppl start following the same S/W...its effectiveness diminishes....and moreover the S/W creator tweaks his code a little bit to predict the market and makes the most money. If his codes triggers that ppl shd sell at 48.5, he will sell load of stock at 48.4 and get out of the stock at the peak. For me, I have been following the market for the last 4 years and I have come up with my own indicators and have been testing them for a while with fake money. It was only 18 months ago I invested real money and it is working for me, so far so good.

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Did you use a specific site for that or did you do it on your own (Excel etc.)? Yahoo Finance used to have a Fantasy game where you get virtual $100k for a month and then invest in stocks etc. They stopped it after sometime, I can't find anything like that anywhere now.

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Re: Markets in Meltdown

oh well here we go again, dow closed below 8000 today at 7949. Will it bounce or will it sink. Interesting times ahead.

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I lost alot of money on GE today, my estimate was it will not go down 13 but it does. I don't know whats happening, all of my estimates/predictions are wrong in last 4 months.

This is un-explainable !

Tumhary naam
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Re: Markets in Meltdown

Why on earth are you still in stocks!!!

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So what do you recommend?

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Re: Markets in Meltdown

^ you are not alone, I have lost most of what I had made in 2008....still a bit on the positive side, this market is messed up for traders like me. Last year 80% of my predictions were right.....now hardly 20% seems up to the mark.....These are crazy markets.....I have started trading in chunks already. I'd say....bad market for short term traders/investors....awesome market for long term investors when you find most of the solid stocks discounted. I think we are heading for 6000........reason--Solid companies like MS and CAT have been laying off ppl and ppl in millions are losing jobs, started with blue collars and now even white collar workers.

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Euros are the best bet... if you are bent upon investing!

You never know which company is going to go bankrupt next these days!