What's Going on in The Market Today (8/11)?

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Lemonyellowschwin's picture
Lemonyellowschwin
Status: Platinum Member (Offline)
Joined: Apr 22 2008
Posts: 561
What's Going on in The Market Today (8/11)?

Alright, I'll kick it off.  It's 11:30 a.m. ET.

The Dow is down about -240.  Why are stocks taking such a beating today?

The 10-year yield is now down to 2.70.

Gold started out strong, up to near $1210 but in the last little bit it's fallen sharply, down to about $1192.

Meanwhile, the dollar index is going nutso, up 1.27.  Of course, this makes perfect sense after the Fed announced yesterday that it's going to flood the world with dollars.  Not!

ashvinp's picture
ashvinp
Status: Gold Member (Offline)
Joined: Jan 21 2010
Posts: 412
Re: What's Going on in The Market Today (8/11)?

Despite the "best" efforts of the UST and Fed, the economy is still in a deflationary process as the latest numbers (unemployment, housing, productivity, income, tax revenues, etc.) suggest. The credit markets, especially the US bond market, have been signaling this for some time now and now we see that equities are following - ZH states that bonds imply the S&P is headed towards at least 1025 - http://www.zerohedge.com/article/10-year-under-27-legacy-curve-steepener...

I'm never really sure how gold will react to these situations, but it seems to be moving more in line with equities lately from pressure to liquidate for cash and concerns over sovereign debt and/or inflation seem subdued for now. The dollar is up because of deflation concerns and it seems most people have figured out that the Fed, with all of their QE schemes, are pretty helpless to cause any inflation in the real economy.

JAG's picture
JAG
Status: Diamond Member (Offline)
Joined: Oct 26 2008
Posts: 2492
Re: What's Going on in The Market Today (8/11)?

Hmmm, where did all that "liquidity" go? 

rickets's picture
rickets
Status: Silver Member (Offline)
Joined: Jun 8 2009
Posts: 238
Re: What's Going on in The Market Today (8/11)?

Key point today - - I am reading blogs all over that say the fed is printing more money.  This is inaccurate - at least in terms of what they stated.  They are maintaining, which is a big difference from growing their balance sheet.  This, while they said things are getting worse.

So, no extra liquidity (yet) and worsening outlook.

Re gold...in markets like today its a source of funds - regardless of anything else.

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