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Why the drop?
- Thread starter cakulev
- Start date
Big Fades Can Take a Toll
6/7/05 2:18 PM ET
The frantic buying this morning has given way to some profit-taking this afternoon. It is primarily caused by the simple fact that the market is extended. There is no bad news and nothing negative. We just have a somewhat overheated market that is badly in need of a rest.
Big intraday U-turns like we are seeing now are often indicators that the market is topping out, but we'll have to see how we close before we can draw any major conclusions. Big fades take an emotional toll on buyers, so they can't be blithely ignored.
We still have solid positive breadth, which is a major plus, but profit-taking has definitely kicked in.
Real money commentary
6/7/05 2:18 PM ET
The frantic buying this morning has given way to some profit-taking this afternoon. It is primarily caused by the simple fact that the market is extended. There is no bad news and nothing negative. We just have a somewhat overheated market that is badly in need of a rest.
Big intraday U-turns like we are seeing now are often indicators that the market is topping out, but we'll have to see how we close before we can draw any major conclusions. Big fades take an emotional toll on buyers, so they can't be blithely ignored.
We still have solid positive breadth, which is a major plus, but profit-taking has definitely kicked in.
Real money commentary
FredBloggs
Guest
profit taking!! lol thats hilarious.
the profit taking occurred in the trading range after the rally.
journalists dont know their arse from their elbow - or theyd be traders!!!
the profit taking occurred in the trading range after the rally.
journalists dont know their arse from their elbow - or theyd be traders!!!
14:16 Floor Talk: Hearing weakness in equity markets attributed to Fed's Guynn saying he's uncomfortable with speculation in housing.
14:26 Guynn's Comments
Approximately an hour ago, Atlanta Fed President Guynn said that: "In some markets -- I won't name individual cities in the Southeast -- the activity in residential real estate looks pretty speculative to me and the makes me very uncomfortable. I don't think this is sustainable. There is a very good chance that some lenders, some buyers and some builders will get burned from what I see in some of those submarkets." As mentioned at 14:16, this seems to be contributing to the afternoon sell-off in the equity markets.
14:26 Guynn's Comments
Approximately an hour ago, Atlanta Fed President Guynn said that: "In some markets -- I won't name individual cities in the Southeast -- the activity in residential real estate looks pretty speculative to me and the makes me very uncomfortable. I don't think this is sustainable. There is a very good chance that some lenders, some buyers and some builders will get burned from what I see in some of those submarkets." As mentioned at 14:16, this seems to be contributing to the afternoon sell-off in the equity markets.
So weakness in Florida real estate was reason the techs were weak all day then droped like a rock?Quote from Longhorns:
14:16 Floor Talk: Hearing weakness in equity markets attributed to Fed's Guynn saying he's uncomfortable with speculation in housing.
14:26 Guynn's Comments
Approximately an hour ago, Atlanta Fed President Guynn said that: "In some markets -- I won't name individual cities in the Southeast -- the activity in residential real estate looks pretty speculative to me and the makes me very uncomfortable. I don't think this is sustainable. There is a very good chance that some lenders, some buyers and some builders will get burned from what I see in some of those submarkets." As mentioned at 14:16, this seems to be contributing to the afternoon sell-off in the equity markets.
FredBloggs
Guest
who gives a shit what the reason is.
just go with the flow
just go with the flow