DOW down 236 points ... will KLCI dive today?
Wall Street falls for sixth day
(Reuters) - Stocks suffered a sixth straight day of losses on Wednesday as frustration over the euro zone's debt crisis, coupled with weak Chinese factory data, further dented investor sentiment.
A weak German bond sale sparked fears the debt crisis was even beginning to threaten Berlin, with the leaders of France and Germany still at odds over a longer-term structural solution.
The poor demand for German government bonds showed that investors viewed investing in the euro zone as being too risky.
Debt problems plaguing Europe and the United States have pressured markets, knocking the S&P 500 down more than 7 percent over the last six sessions. World stocks hit their lowest in six weeks on Wednesday.
"A poor auction of German bonds added to recent worries that the risks from the debt mess are spreading to the core of the euro zone," said WhatsTrading.com options strategist Frederick Ruffy.
All 10 S&P 500 sectors were negative, with financials among the biggest decliners over concerns about exposure to European debt. JPMorgan Chase & Co (JPM.N) dropped 3.5 percent to $28.38 and Citigroup Inc (C.N) lost 3.9 percent to $23.51.
Economically sensitive stocks such as energy and commodity-related issues also slid. The PHLX oil service sector index .OSX dropped 3.7 percent and the S&P materials sector .GSPM fell 2.8 percent. Schlumberger Ltd (SLB.N) lost 3.6 percent to $66.50 and DuPont and Co (DD.N) shed 2.9 percent to $44.08.
The Dow Jones industrial average finance/markets/index?symbol=us%21dji">.DJI sank 236.17 points, or 2.05 percent, to 11,257.55 at the close. The Standard & Poor's 500 Index .SPX dropped 26.25 points, or 2.21 percent, to 1,161.79. The Nasdaq Composite Index .IXIC lost 61.20 points, or 2.43 percent, to 2,460.08.
The S&P 500's six-day decline is the longest such streak since a seven-day slide that ended August 2.
Reflecting heightened fears in the market, the CBOE Volatility Index, or VIX .VIX, Wall Street's so-called fear gauge, jumped 6.3 percent.
Volume was light ahead of the U.S. Thanksgiving holiday, when markets are closed. About 6.9 billion shares changed hands on the New York Stock Exchange, NYSE Amex and Nasdaq, below the current daily average of 8 billion shares.
"There is no buying demand, but this does not mean that there is a really strong offer, either. It just means that we might be working off the 'oversold-ness' with this choppy action, 1160-1180 on the S&P," said Joseph Cusick, senior market analyst at OptionsXpress Holdings Inc in Chicago.
One of the few bright spots was Deere & Co (DE.N), which climbed 3.9 percent to $74.72 after quarterly earnings beat expectations and sales shot up 20 percent.
Adding to market worries, data showed Chinese manufacturing shrank the most in 32 months in November, intensifying concerns about a global economic slowdown. U.S. crude oil fell 1.8 percent on fears of reduced demand from China, the world's No. 2 economy
U.S. data painted a mixed picture and showed little reason for optimism. New jobless claims rose last week and consumer spending barely increased in October, while another report showed new orders for durable goods, which include long-lasting manufactured items such as refrigerators, rose.
(Reporting by Angela Moon; Editing by Jan Paschal)
It is still not time to shop yet ... but we shall be waiting for that 'deep' red sea diving. Getting ready to grab some of good stocks as they will be in discounted prices.
7.45 am : Yes, I am getting more excited as markets aorund are diving. Many of times, I have bought too early(and sold too early). I will want to stretch my patience a little longer ...
RSI for KLCI still at 41, quite resilient ... hence, I will prefer it to go below 25 level, which means KLCI need to go below 1390 levels? We shall check ...
Happy fishing ....
To release stress of markets, go to laughable sites!! LOL
TEH : I do need to learn the diffferences between facebook and others. I need to start to create others too. LOL
9.10 am : KLCI ONLY down 4 points??
KNM : At 1.00 vs 1.01, checking her to be penny stock(need to divide the price by 4 la). Who are the sellers?? Whoever selling will be incurring huge losses as it is a NEW LOW,right?
2.35 am : KLCI up 4 points plus ... wow ... I am wearing RED leh. Haha
AirAsia : What a turn ... 3.47 in the morning and to 3.67 now?
MudaJaya : Registered good profits but not moving much due to bad market sentiments? Well, worth collecting at Rm3.20 level ... the last time I looked at her was when I sold at RM3.40. See if she could rebound back to RM3.40 level again.
2nd Meeting : Tmr's night meeting will be more interesting as some taken positions in some stocks mention in our facebook. I do not keep track on anyone's trade. Please do your own calculations and plans, ya. Good luck.
Cohort-4 : Will be learning module-3 MACD and Stochastic this SAT.
e-learning : So far 12 paid-up. Good. Will promote again this Sunday and hope to reach 20 by next week.
Anyone else willing to learn technical-analysis of charts(BASIC ONLY) thru e-learning? I will guide. e-mail me, ya.
9.35 pm : KLCI closed 14 points higher, opposed to my 'hope' that it closes 14 points lower!! It is a magic ... smell of election is nearing ... Malaysia BOLEH, KLSE boleh!!
BJToto : Few of my tratles grabbed her yesterday at 4.08-4.10 levels. Today, it is doing better than my AMMB(I opted for AMMB ... haha).
AMMB : Early sign of reversal seen ... will check if there is a follow-through tmr.