Investing General Discussion
- Thread starter Furious
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Guest, it's time once again for the massively important and exciting FoH Asshat Tournament!
Go here and give us your nominations!Who's been the biggest Asshat in the last year? Give us your worst ones!
Blazin
Creative Title
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because we are in the margin selling portion of the crash. So today everything dropped even the“safe havens” because people sell anything they have to raise cash.
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LachiusTZ
Rogue Deathwalker Box
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Just seems odd. I thought this situation is what those things are meant for, and the demand would increase because it's got physical value.
Big Phoenix
Pronouns: zie/zhem/zer
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China is back to work;
www.reuters.com
Resumption of work at Foxconn factories in China beats expectations, says founder
Terry Gou, founder of Apple's major manufacturing partner Foxconn, said on Thursday the resumption of production at its factories in China had "exceeded expectations" after a prolonged halt due to a coronavirus outbreak that had disrupted supply chains.
www.reuters.com
Blazin
Creative Title
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S&P Futures hit limit up this morning (5%). Large gap up is not usually helpful, as people at the open are too skittish to buy 5% up from the close so it usually ends up spending the day fading the move. If we somehow see strong buying at the open it would be telling.
If the market can close the week back above the 200 wk moving average (currently 2638.87 on the S&P) would be a good signal for an attempt at establishing a bottom again. Each of the previous support levels we have tried this and failed. At some level it will hold, this support line has been important since 2009 so I'm sure it is going to give a strong go at it.
If the market can close the week back above the 200 wk moving average (currently 2638.87 on the S&P) would be a good signal for an attempt at establishing a bottom again. Each of the previous support levels we have tried this and failed. At some level it will hold, this support line has been important since 2009 so I'm sure it is going to give a strong go at it.
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Ravishing
Uninspiring Title
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DIS was at $89 last night after hours, now it's $100 premarket. Fuck.
I had an order in for $90 but not for EXT hours.
With closure of Disney World + who knows how long this virus shit will last, I'm still of the mind this is temporary and it'll go back down. Probably < $90 even.
Woulda been nice making a quick 10% though.
I had an order in for $90 but not for EXT hours.
With closure of Disney World + who knows how long this virus shit will last, I'm still of the mind this is temporary and it'll go back down. Probably < $90 even.
Woulda been nice making a quick 10% though.
Sanrith Descartes
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They don't "want" to sell those positions. Trading out on margin you are using borrowed money to invest collateralized by your portfolio. In times of steep market drops the value of your portfolio drops and you have to make it up with cash. Or you need to sell positions that are underwater on borrowed funds. In the worst case scenario your positions get liquidated against your will to cover your margins. Its about as ugly as the girls left at the bar at closing time.
Blazin
Creative Title
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And dont think so much about this as Joe Etrader this is institutions which are levered to numbers that would boggle us.
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Sanrith Descartes
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I found this article a pretty good background on the behind the scenes of the Fed's repo action (the 500b a day injections).
www.marketwatch.com
These are the dysfunctions in the US bond market that will lead the Fed to buy at least 500 billion of Treasurys - MarketWatch
Amid frenzied trading in the past week, the $18 trillion Treasurys market is showing cracks that is raising eyebrows among traders, hedge fund managers and investors.
Sanrith Descartes
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We all look for different things to invest in (vs trade) long term. Things I look for and you might want to is a company's debt load, its credit rating, cash and equivalents and cash flows.
Over the next 3 months I figure most companies are going to take a hit to revenue. Do they have the cash to cover their bills. Can they service their debt. Is their credit good enough to roll that debt over. The companies that fail to come out on the other side are going to be those debt laden, negative cash flow zombies who have been staggering along.
Remember, there is a reason some companies are down 20% and some are down 60%. While it could be industry related (planes and boats), it could also be some companies are just bad. Compare their debt load to their EBITDA.
Of course you may look at other things, I'm just sharing things I think are doubly important in the current environment when everything company is on sale.
Over the next 3 months I figure most companies are going to take a hit to revenue. Do they have the cash to cover their bills. Can they service their debt. Is their credit good enough to roll that debt over. The companies that fail to come out on the other side are going to be those debt laden, negative cash flow zombies who have been staggering along.
Remember, there is a reason some companies are down 20% and some are down 60%. While it could be industry related (planes and boats), it could also be some companies are just bad. Compare their debt load to their EBITDA.
Of course you may look at other things, I'm just sharing things I think are doubly important in the current environment when everything company is on sale.
Attog
Blackwing Lair Raider
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Sanrith Descartes
I see Berkshire Hathaway as an example of a company that comes out of this stronger than it went in.