let it crashes bah...
no eyes see liao...

The market is already anticipate a 0.75% rate cut for the coming Fed meeting. Current Fed fund rate is 3.0%, how much they can cut with 0.75%?

Now at 3%, already see USD plunging non-stop, with even more rate cut down the road, we might see 1.70 Euro/USD! or AUD/USD at 1.00. which will only make commidities price like oil shooting even higher.

As for European and Australian even though oil is at USD 105, it is actually not as high as we taught. Back years ago Euro is on parity with USD at 1.00. Now it is 1.50. So effectively oil at 105 is like at 60-70 for them due to appreciation of the currency. That's why whenever you see USD goes down, oil price tends to go up because oil as well as other commodities are traded in USD.

I knew locally, gov and newspaper always make some headline like RM is rising to new high since 1997 crisis but it is comparing with a plunging USD (who does appreciate against USD anyway), but comparing with other currencies, RM hardly appreciate much, instead depreciated against most major currencies like AUD, Euro, Yen, NZD.

DJI dropped below 12K points for the 2nd time this year, and this time, going to drop more and more.... rate cut can help a bit but it's quickly digested by the market as more and more bad news coming in.... my warrant, gonna try to cash out asap dy, expiry date 23 april, no time for me to wait.... faster cabut n hold cash...

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Added on March 7, 2008, 10:42 pmtonight's DJI gonna be:
up down up down
and continue.... up n down.. even more exciting than roller coaster in Genting...

This post has been edited by CalvinCLK: Mar 7 2008, 10:43 PM

Hmm..no wonder Abdullah said current oil price is burdening coz RM didn't appreciate much as compared to AU, EUR currency.
A twisted news from government to blind those ppl that totally believing our economy is good if compare to US.

Anyway, tonight i bet DJ will close RED as today is FRIDAY(specifically said BLACK FRIDAY)..
Combining with bad results from GE, we will have big shopping spree..time to shoot the bullets.

Btw cherroy, where is all of your stars gone? is it high up sky accompanying moon? hehe..

By shoot to the bullets, do you mean buy?

IMHO... the KLSE still has quite some way to fall.

Analyst says DJ may decline till 11000level.

OIL up and stay strong at 105level. CPO drop till a more reasonable level now. A reasonable level cpo is around 3500.

Keep $ for next round of up trend.

analyst also says KLCI going to break 1500 wor this year...hehehehhe...before this...they says strong support at 1350...then 1280..then 1200....etc etc etc etc.....

just becareful n dun rush la....after GE is over...then monitor urself the market condition...dun trust wat those analyst says....

btw...i VOTED! very fast...didn't wait long.....

Costing of Projected/incomplete projects secure or insecured do not count in the books yet until it completes and makes profit for companies. Borrowings and costing is unpredicted due to the ups and down of the bank interests and global economy and political stabilty of the country.

Doesnt mean having project or getting project is good (show only that it have job secured and stability and not making profit yet). its good until is start making $$ in years to come. who knows what will happened then.



This post has been edited by ankw: Mar 8 2008, 02:05 PM

I'm surprised no one added this.

DJIA closed at -146 during Fridays trading. Close below 12k points. The last time it was below 12000 points was in the last quarter of 2006!! Then on, the bull went on to 12k and beyond never looking back. And now it re-visits the old 11k - 12k area again.

This post has been edited by skiddtrader: Mar 8 2008, 02:25 PM

DOW JONES INDUSTRIAL AVERAGE IN
(DJI: ^DJI)
Index Value: 11,893.69
Trade Time: Mar 7
Change: Down 146.70 (1.22%)
Prev Close: 12,040.39
Open: 12,039.09
Day's Range: 11,819.69 - 12,094.21
52wk Range: 11,508.70 - 14,280.00

Economic Outlook Darkens
Posted Mar 07, 2008 11:01am EST by Aaron Task in Investing, Recession
Related: DJP, ^SPX, ^IXIC, ^DJI

Crude's soaring, the dollar is tumbling, the economy has hit a wall, and the stock market is in retreat as the subprime crisis goes global. The best investors can hope for is that this is as bad as it gets.

This morning's grim jobs report and the latest round of hedge-fund blowups suggest there's more shoes to drop. Fears of 1970's style stagflation can't be dismissed and global policymakers aren't in sync on how to combat the credit crunch.

But all hope is not lost. For one, there's actually some benefits of a weak dollar, unless you're a big holder of Treasuries: In the short term is makes US multinationals more competitive in international markets. Over the long term a weaker dollar benefits the stock market by increasing the relative value of corporate earnings. In addition, a weak dollar is good for 'real assets' like commodities and real estate.

More importantly, perhaps, a weak dollar helps debtors -- like the US government and homeowners -- because it devalues their long-term liabilities. Think about it, if your monthly mortgage is fixed at $2000 per month and the value of the dollar falls, over time that $2000 payment is worth less -- assuming, of course, salaries rise with inflation and you can keep your job...

Wall St Week Ahead: Stocks may fall anew on recession fears

NEW YORK, March 7 (Reuters) - U.S. stocks could face a further pounding next week as evidence mounts that the economy has entered a recession and problems in the financial sector accelerate.

Next week's economic agenda is relatively light, until Friday, when the Consumer Price Index will command attention, especially with oil's jump this week to a record over $106 a barrel and the surge in other commodity prices.

But anxiety about inflation will take a back seat to the recession fears rippling from Wall Street to Main Street after Friday's government report showed employers cut payrolls for a second straight month.

At the same time, the financial sector has been pummelled by news showing further signs of troubles related to the subprime mortgage market.

For one, concern about the survival of Thornburg Mortgage Inc (TMA.N: Quote, Profile, Research) increased on Friday after the mortgage lender said it has $610 million of margin calls outstanding as of March 6, an amount exceeding its available liquidity.

The negative news trend is showing few signs of letting up, and could mean further losses for stocks.

"The sentiment right now is extremely bad," said John Praveen, chief investment strategist at Prudential International Investments Advisers LLC in Newark, New Jersey.

"On the economy side, today's numbers on the labor market probably confirm the U.S. is in a recession," he said, though he added that much uncertainty still exists on the subject.
"On the credit side, we're seeing further stress on mortgage tightening and fallout from that," Praveen said.

S&P 500 WITHIN BEAR'S REACH

Stocks ended lower on Friday and notched their second straight week of losses.

The S&P 500 .SPX is now off about 17 percent from its record closing high set back in October, a drop that puts the benchmark gauge a shade away from crossing a threshold that market technicians consider to be the onset of a bear market.

On Friday, the Dow Jones industrial average .DJI fell 146.70 points, or 1.22 percent, to end at 11,893.69. The Standard & Poor's 500 Index .SPX slid 10.97 points, or 0.84 percent, to 1,293.37. The Nasdaq Composite Index .IXIC dropped 8.01 points, or 0.36 percent, to 2,212.49.

For the week, the Dow lost 3 percent, the S&P 500 shed 2.8 percent and the Nasdaq declined 2.6 percent.

HOPES FOR A FED RESCUE

If there is to be any reprieve for the stock market, it could come from signs the Federal Reserve is contemplating an emergency interest-rate cut, analysts said.

The Federal Reserve is scheduled to meet on March 18.
But this week, stocks sank below levels seen on Jan. 22, when the Fed instituted an emergency rate cut to ease credit market strains and revive the economy.

Just minutes before the release of Friday's jobs report, the Federal Reserve announced measures to address heightened liquidity pressures in term funding markets, a move the Fed's staff said was a reaction to recognition that market deterioration had accelerated recently.

"Stocks and bonds are both begging the Fed to cut at least 50 basis points, and perhaps as early as next week. Investor risk aversion is spreading and the Fed can see this in the price action of all asset classes," said Tom Sowanick, chief investment officer of Clearbrook Financial in Princeton, New Jersey.

WANTED: EARNINGS REALITY CHECK

Next week's earnings schedule is short, but some quarterly results are expected from retailers, including American Eagle Outfitters (AEO.N: Quote, Profile, Research). For a full earnings diary, see [RESF/US]

Many analysts have said earnings estimates are overly optimistic and need to come down, further adding to worries for stock investors, who continue to see stocks as a bargain.

As the result of an eroding earnings outlook, stocks are slightly more pricey now than they were at their previous lows on Jan. 22, with a 12-month forward price-to-earnings ratio at 13.03 now versus 12.93 then.

"It's likely that first-quarter earnings are going to be troubling for a large number of companies," said Sasha Kostadinov, portfolio manager and research analyst at Shaker Investments in Cleveland, Ohio. "The market has some valuation support here, but the near-term fundamentals are a bit sketchy."

SKYROCKETING OIL, SINKING DOLLAR
Another source of concern for investors is oil, which has repeatedly hit record highs.

Another worry is the dollar, which is testing record lows against the euro and multi-year lows against the yen.

On Friday, U.S. oil CLJ8 fell 32 cents to settle at $105.15 a barrel, but only after climbing to $106.54 -- the highest level since the New York Mercantile Exchange launched crude oil futures in 1983.

While higher oil prices have helped stocks by lifting the energy sector, they remain an overall negative because they put an extra burden on consumers and businesses.

Generally weak February sales from major department store chains, including J.C. Penney Co Inc (JCP.N: Quote, Profile, Research), on Thursday added to concerns that consumers are cutting back spending.

ALL EYES ON CPI

On the economic agenda, the international trade deficit for January is due on Tuesday, followed by weekly jobless claims and February retail sales data, as well as February import and export prices, all due on Thursday.

The Consumer Price Index for February, expected on Friday, is forecast up 0.3 percent for the overall figure and up 0.2 percent for core CPI, excluding volatile food and energy prices, according to economists polled by Reuters. For a full economic diary, see [ECI/US]

"CPI is going to be an important number," said Paul Mendelsohn, chief investment strategist at Windham Financial Services in Charlotte, Vermont.
The impact of rising gasoline and food prices on consumers' inclinations to spend money also will be assessed on Friday, with the preliminary reading for March of the Reuters/University of Michigan Surveys of Consumer Sentiment.

In Mendelsohn's opinion, the lighter-than-usual economic agenda could keep the stock market stuck at current levels.

"We're at very critical levels here. This is an area where if we're going to mount a rally, we've got to do it. But I'm not sure we're going to do it."

http://www.reuters.com/article/marketsNews...20080307?rpc=44

This post has been edited by ankw: Mar 8 2008, 02:47 PM

Haha, you don't say, I also don't notice.
Better getting more $$$ rather than stars. Haha

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Added on March 8, 2008, 3:58 pmThe previous low at the region of 11,500-11,600 (intraday) is going to be a crucial test for the market, if it manages to hold, then properly will see some technical rebound, if not, more downside ahead.

Next round of real up trend, may need some times. For those aim for long term, be prepared to hold more than 2-3 years. History always shows us wheneven got economy crisis then its take some years (2-3 years above) to recover, there is seldom got quick fix one.

Look at Asian economy crisis, 2000 tech bubble as example and current problems are because of real estate bubble in US.

This post has been edited by cherroy: Mar 8 2008, 04:03 PM

Hi All,

Do you mean if anyone who holds the blue chip company stocks? should they sell all at this moment or keep holding ? i think the market is going to crash.

This is what I am worrying... The market is really unstable, more probability of downside than up. I lost over 30% in current warrant holding, still considering to cash out or not, may be just wait for next rate cut, hoping for a rebound in coming days.. Or else we all will go to Holland...

wah!!! very gan jiong bout the election result ar!!!!

DJ is below 12K points now.
OIL at high 105/barrel.

If GE results is not so confident to foreign funds then, a bit worrying.

So which sides you are vote for today ?

That's why .. we should exercise our votes diligently with long-sighted perspectives

Yup. but with controlled/calculated shooting (picking right stocks to keep). Not random shooting lor..
Anyway based on bad market sentiment now, i rather stay sidelines first.
Wait for moment of rebound based on TA indicator.

me too, i'm become second time voter today.
Fast fast throw, fast fast get results by tonight.

results out, anyone got any idea how it will effect monday market?

Likely, will be a major wipeout. Government linked government will feel the heats.

Contracts awarded for major development under the Malaysia 9th plan will be likely be affected especially for the northern corridor.

Expecting the KLCI to start entering bearish stage.

they can now oppose against raising petrol price! ehehheheheh
tomolo depends on how foreigners take the results...if they feel the transparency obtained due do Barisan nt having 2/3 will be good for the future....they might still pour money into it while if they take it negatively......KLCI will be in bearish mode and be ready to keep ur money in FD-stock for 2-3 yrs hehehehhe