"Equities around the world turned nasty"

greenspun.com : LUSENET : TimeBomb 2000 (Y2000) : One Thread

So sez the yammermouth from the CBOT on CNBC.

S&P futures down 19.30 @ 8:30 AM EST.

-- Ron Schwarz (rs@clubvb.com.delete.this), January 04, 2000


The YAHOO article suggests that the future indicator at down 18 would equal about 150 down early in the day. With ALL of the DAY TRADERS usng the 4:1 "leverage" (margin) this could make it REAL INTERESTING after last night's margin calls.........

-- Chuck, a night driver (rienzoo@en.com), January 04, 2000.


Where did you hear about margin calls? I heard no such reporting and there was no significant downward action in NASDAQ to warrant it.

This morning however, the NASDAQ opened down 111

-- William R. Sullivan (wrs@wham.com), January 04, 2000.

Day traders on all the exchanges have been given a LOT of leway (like 4:1 margin OK'd). with the Dow 30 dropping 139 yesterday, the HAD to be some margin calls made last night. these WILL NOT make the press because they will accelerate the volatility.


-- Chuck, a night driver (rienzoo@en.com), January 04, 2000.

There will certainly be many margin calls. In fact, that is primarily how individual investors will exit the market. But I doubt many went out last night/this am.

-- Me (me@me.me), January 04, 2000.

Remember how jubilant the commentators were when the NASDAQ kept hitting record highs? You should see the looks on their faces now. Oh well, glad I didn't jump in the market yesterday...I'm waiting until the blood bath is over, say in a couple of months.

-- bardou (bardou@baloney.com), January 04, 2000.

Me too Bardou...I am picking my stocks and sitting back and watching. I am sure that the bubble is going to break eventually and when the survivors shake out, I will be in my brokers office. Until then I sit and wait.


-- Taz (Tassi123@aol.com), January 04, 2000.

Also, do not forget what may be happening on the institutional side with derivative positions. Orange County went bust, and Long Term Capital Management Hedgefund did as well (until Greenspan stepped in to broker a deal between banks and LTCM).

Leveraged positions are across the international spectrum. Banks, Pension Funds, Insurance Companies, Brokerages, Mutual Funds, Mortgage Brokers, to name those that immediately come to mind.

My point is that what we are seeing is only a portion of what actually be transpiring. HedgeFunds and Banks could be caught in losing derivative positions and we will not hear about them until they are too big to hide (as in LTCM and Orange County). So...it is interesting times.


-- (He Who) Rolls with Punches (JoeZi@aol.com), January 04, 2000.

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