Worth a view.
Worth a view.
Stocks plunge; Dow has record drop, then recovers
NEW YORK (AP) — The stock market had one of its most turbulent days in history as the Dow Jones industrials fell to a loss of almost 1,000 points in less than half an hour on fears that Greece’s debt problems could halt the global economic recovery.
The market’s plunge came less than 90 minutes before the end of trading. The Dow’s drop was its largest loss ever during the course of a trading day, but it recovered to a loss of 347 at the close. All the major indexes lost more than 3 percent.
There were reports that the sudden drop was caused by a trader who mistyped an order to sell a large block of stock. The drop in that stock’s price was enough to trigger “sell” orders across the market.
Today, I started a position in Transocean ($RIG), the operators of the oil rig that recently blew up in the Gulf Coast and currently pissing off environmentalists. I’ve been stalking its movement ever since the sell off last week. It’s my belief that sellers over-reacted, and that the company’s stocks now represent a good value.
….well, at least good enough for a trade..
Around 11:30am (Eastern time), the stock started to move up. I watched it for a good while to confirm upward price action. Eventually, I started a position at around 12:20pm (Eastern time) – blue arrow.
Last year, I did pretty well trading the stock of Transocean ($RIG); they were the operators of the oil rig that blew up recently in the Gulf. The actual oil well is leased by British Petroleum ($BP), who are legally liable for the cleanup. In my opinion, both stocks are greatly oversold. In the past couple of days, investors have dumped these companies’ stocks fearing the total cost of liability.
With that said, I’m looking to restart another position in $RIG…. not right away, but soon.. … Continue Reading
Chris Ware, American artist, was commissioned to do the cover for the Fortune 500 issue. Sadly, it was rejected.
The Securities and Exchange Commission charged Goldman Sachs with fraud, and the stock tumbled almost 13% ($24). $12 billion in market value wiped away with that one headline. Incredible!
Interesting to me (probably way more so than to anyone else) is how beautifully Fibonacci Retracement Lines touched certain candlesticks (the christmas-colored verticle lines). You can see, by using the intraday high and low as a base, this stock was trading between 38.2% and 23.6% mid-day. Yep, I know…. more interesting to me.
So, if you haven’t read the news, basically, Golden Slacks created, marketed, and sold knowingly-crappy investments to other parties. What is worse is that at the same time, they bet against those same investmets. They made moolah when the investments became worthless. That’s it in a nutshell. If you want details, you can read this NY Times article.