US Dow Futures Down Over 600 Points.

Discussion in 'Stocks & Derivatives' started by ozcopper, Feb 24, 2020.

  1. Oddjob

    Oddjob Well-Known Member Silver Stacker

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  2. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    Thank fk.
    I backed up the truck today hoping the world would realise this beer virus is nothing but a media sensation .... like climate change was last month, before it pissed down rain.
    Fingers crossed. :)
     
  3. sgbuyer

    sgbuyer Well-Known Member Silver Stacker

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    How many percent of funds is that?
     
  4. madaw1

    madaw1 Well-Known Member

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    Share market -big Manipulation and trading news...
     
  5. slavaja

    slavaja Well-Known Member Silver Stacker

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    I hope your right but I just don't see how stock market will continue to rise when Trump declared corona virus a national emergency.

    https://www.google.com/amp/s/mobile.reuters.com/article/amp/idUSKBN2102G3

    To me looks like we're gonna close in the red
     
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  6. wrcmad

    wrcmad Well-Known Member Silver Stacker

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    I always keep a good percentage of powder dry. ;)
     
  7. openeyes

    openeyes Well-Known Member Silver Stacker

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    Dead cat bounce
     
  8. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    It's the markets deleveraging and margins being called
    Options and Puts are being settled
    On selling days.... few are buying, so shares drops hard
    On buying days... few are selling, so shares rise up hard

    The biggest gains in markets has been the dips of a bear market before the recession.

    Besides as US start forced lockdowns in New York, Chicago, LA, Boston, San Francisco, Dallas and Miami panic will begin
     
  9. BuggedOut

    BuggedOut Well-Known Member Silver Stacker

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    It's all over. They closed Disneyland.....
     
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  10. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Boeing and Hilton fully draw out their credit facility
    Investment firm Carlyle and Blackstone telling all the companies they own to fully draw down their credit facility

    In layman's term, it is like a person taking out 100% of available Equity out of their mortgage line of credit and maxing out all their personal credit cards
     
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  11. 66rounds

    66rounds Well-Known Member Silver Stacker

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    Why would they draw down in a time like this? To cover costs?
     
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  12. sterling-nz

    sterling-nz Well-Known Member

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    I'd be interested in understanding that as well if someone can explain please.
     
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  13. alor

    alor Well-Known Member Silver Stacker

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    if you owe 50k to the bank, its your problem
    if you owe a bank 500B, the bank has a big problem, you have no problem
     
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  14. alor

    alor Well-Known Member Silver Stacker

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  15. alor

    alor Well-Known Member Silver Stacker

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  16. madaw1

    madaw1 Well-Known Member

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    Hopping and praying-NO!...
     
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  17. ozcopper

    ozcopper Administrator Staff Member

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    ALL ORDINARIES (^AORD)
    ASX - ASX Delayed price. Currency in AUD

    5,209.40-381.30 (-6.82%)

    U.S. Stock Futures
    [​IMG] S&P -128.50 / -4.77%
    Level 2,567.50
    Fair Value 2,695.61
    Difference -128.11
    Data as of 7:17pm ET

    [​IMG] Nasdaq -359.75 / -4.54%
    Level 7,556.00
    Fair Value 7,972.49
    Difference -416.49
    Data as of 7:15pm ET

    [​IMG] Dow -1,041.00 / -4.53%
    Level 21,947.00
     
  18. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    Not all banks will have funds to pay out fully... And conditions might change ie cancel the facility as it goes to their limit or they get get some more cheap feds money and fulfil their obligations.

    ie banks might have 100 billion ready in funds.... but have 200 billion in agreements (getting fees)

    But as the draw downs near 80 billion the banks likely will trigger a condition in fine print that stop all others, so the bank can re-evaluate.

    Much like credit cards, doubt a single major issuer like Amex have funds in hand for all their cards to max out at the same time.

    You might say money is cheaper now..... doesn't help if the banks cancels the facility, or the banks might rerate the borrowers credit worthiness and ask for higher interest or cancels the facility outright.
     
    Last edited: Mar 15, 2020
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  19. 66rounds

    66rounds Well-Known Member Silver Stacker

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    So they draw down in the fear of not being able to rely on the facility down the track?
     
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  20. Ipv6Ready

    Ipv6Ready Well-Known Member Silver Stacker

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    I would presume so... especially since the stimulus or rate cut won't increase revenue.

    In current economic environment the fed cuts and stimulus is akin to giving starving people rations to keep them alive (since there is zero demand).
    In the GFC the fed cuts and stimulus was more like giving people cheap money to buy equipment to raise a crop so they eat and sell.
     
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