Sunday, May 09, 2010

Knock-Down Of The Last Week

The Mother Nature was so great to knock me down with a fever, so I had hard time to make a post, however I had the chance to experience all the brutish realities of markets, but you were cautioned in advance ...

The Crash of 14:45 on Thursday is worth listing the Dow credentials here (H/T FT Alphaville):
DJIA, down 347.80 points, or 3.20% to 10520.32
Biggest point drop since February 10, 2009.
Biggest percentage drop since April 20, 2009.
Down three straight days and four of the last five.
Down 631.51 points, or 5.66% the past three sessions.
Biggest three-day point drop since the three-day ended November 20, 2008.
Biggest three-day percent drop since the three-day ended March 3, 2009.
The last time the DJIA had a three day drop was the three-days ended January 22.
Lowest close since March 4.
Hit an intraday high of 10879.76 today, up 11.64 points, or 0.11%
Hit an intraday low of 9869.62 today, down 998.50 points, or 9.19%
Biggest intraday drop in its history.
Had an intraday high-low swing of 1010.14 points
Paul Kedrosky at Infectious Greed listed two nice videos of Live Crash Media from Crash of 05/06/10 14:45, get hands on. Trader's Narrative is trying to bring a more rational technical insight into crash, but please also pay attention to Primary Trend!

All in all, nothing has changed in the mood of US business media, as economic indicators are surprising on the upside. All what happens in markets is caused by and should be a problem of others. At least so far Americans try to position themselves like they are decoupling from the rest of the world. Some people see it quite an interesting development, but some are trying to say that sustainable US consumer is back!

Well, US consumer is no better than Greek or Spaniard, runs current account and huge budget deficit. If it was sub-prime finance that was justifying unsustainable consumption in 2007 or 2008, now it is Uncle Sam itself ...

Sean Corrigan of Diapason Commodities was excellent to single it out in the following picture. Click to enlarge, courtesy of Diapason Commodities.

So, enjoy the arrogance and denial ... till recognition comes, and faster than I expected?

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