Stock market going down on Monday.

(Nick Gromicko, CMI) #1

Like a lead zeppelin.

(Marcel R. Cyr, CMI) #2

Let’ hope it looses a little lead before Monday, the Dow already has lost 2,140 points as of Oct. 3rd. I have lost enough for awhile. My financial advisor says it is all emotional selling out of fear and to hold on, it will go back up.
I sincerely hope he is right. :wink:

(Roy D. Cooke, Sr) #3

History of the Monday Effect

Frank Cross first reported the anomaly of the Monday effect through a 1973 article entitled “The Behavior of Stock Prices on Fridays and Mondays,” published in the Financial Analysts Journal. In the article, he demonstrated that the average return on Fridays exceeded the average return on Mondays, and that there is a difference in the patterns of pricing changes throughout the day. The traditional outcome of the Monday effect is an anomaly indicates a dip on Mondays following a rise on the previous trading day, usually Friday. It usually results in a recurrent low or negative average return from Friday to Monday in the stock market.
Some theories say the Monday effect has a lot to do with the tendency of companies to release bad news on a Friday, after markets close, which then depresses stock prices on Monday. Others think the Monday effect might be attributed to short selling, which would affect stocks with high short interest positions. Alternatively, the effect could simply be a result of traders’ fading optimism between Friday and Monday.
The weekend effect has been a mainstay anomaly of stock trading for years. According to a study by the Federal Reserve, prior to 1987 there was a statistically significant negative return over the weekends. However, the study did mention that this negative return had disappeared in the period after 1987 until 1998. Since 1998, volatility over the weekends has increased again, and the phenomenon of the Monday effect remains a much debated topic

(Marcel R. Cyr, CMI) #4

My tracking records in the past ten weeks, Friday to Monday’s has gone down 6 times and up 4 times for the DJIA. :slight_smile:

(Christopher Currins, CMI) #5

So stock market is tumbling, interest rates keep going up, home sales are down, cars sales are down, I thought we had a booming economy. What’s up?

(Marcel R. Cyr, CMI) #6

Why is the stock market down so much?

Sure, by several measures the U.S. economy is strong. Unemployment is at decades-old lows and businesses and consumers have shown confidence. Economic output is growing.
Executives lately have been talking about the challenges they face with rising production and materials costs and relatively new tariffs. Some of these executives say their profit margins risk getting squeezed by these factors.
Wall Street’s so-called fear gauge, the CBOE Volatility Index, is at 25, the highest it’s been since the market swoon earlier this year.

(Dave Fetty, CMI) #7

Market is worried that D’s might gain some control. :wink:

(Christopher Currins, CMI) #8

Wrong answer. Read what Marcel posted. That’s more accurate. New tariffs are causing major problems. Including Trump’s tariffs on Canadian lumber having a major impact on new home construction and remodeling.

(Dave Fetty, CMI) #9

What makes you think this?

(Nick Gromicko, CMI) #10

Interest rates going up. No more cheap money.

(Michael Larson, WI Lic. # 1672-106) #11

Wall Street Crash of 1929 - Wikipedia

(Marcel R. Cyr, CMI) #12

DOW
US Markets Open
24,976.86

+288.55
+1.17%

NASDAQ
US Markets Open
7,246.65

+79.43
+1.11%

S&P 500 Index
US Markets Open
2,697.95

+39.26
+1.48%

Hopefully it stays up.

(Joe Funderburk, CMI) #13

Nick, if you’re so good at predicting the markets why aren’t you a billionaire? :wink:

(Roy D. Cooke, Sr) #14

He just might be a One

(Michael S. Gleeson, 16000070526) #15

Like a lead zeppelin… I bought some Tesla stock at the last large dip… I have gained 25% in the past 2 weeks… Time to sell and pull out some sweet profit. Today alone it is up 4%

(Emmanuel J. Scanlan, TREC# 7593) #16

Interesting that their profit margins are at risk of being squeezed after an almost 50% cut in the corporate tax rates. Again we see total BS coming from corporations and the Loonies decrying all the good the Trump Administration has done. :roll:

(Christopher Currins, CMI) #17

That didn’t last long.

Market Summary > Dow Jones Industrial Average
INDEXDJX: .DJI

24,379.40 −308.91 (1.25%)

Oct 29, 3:17 PM EDT

(Marcel R. Cyr, CMI) #18

That’s what I was afraid of. It does it every time. Starts good then dives.

DOW

24,225.78
-462.53
-1.87%
DOW decrease 24,225.78 -462.53 -1.87% 10/29/2018 3:45 PM EDT
US Markets Closed

NASDAQ

7,050.29
-1.63%

S&P 500 Index

2,609.18
-1.86%

(Marcel R. Cyr, CMI) #19

I’ll have to ride it out now, digging in the original money.
That sucks. :frowning:

(Michael S. Gleeson, 16000070526) #20

I pulled back this AM and made a lot of $$. Going to wait a couple of days and monitor things, likely even until after the midterms to throw my play money back into anything.