Dow plunges over 1,000 at Monday bell, attempts recovery

Simulated view of a black hole in front of the Large Magellanic Cloud. We don't actually know what this means, but a Black Hole is a great metaphor for what's happened to investment portfolios as stock markets continue to crash around the world. (Image of simulated event via Wikipedia)

WASHINGTON, Aug. 24, 2015 – As we predicted earlier this morning, the Dow Jones Industrials took a tremendous hit at the opening bell, with the DJI down over 1,000 points in the opening bloodbath. Currently, at 10 a.m. EDT, the Dow is fluctuating wildly between roughly -525 and -725 points. Trading in many stocks has been halted as circuit breakers were hit.

Carnage was just as bad or worse on the broader-based S&P 500, which is currently down a massive 64 points and change. The NASDAQ, consisting of many smaller companies, techs and biotechs, has been blasted nearly back to where it was in the October 2014 market collapse, currently off 174 points.

Read also: Wall Street Woes, big time: Black Monday is at hand

Among the most widely traded stocks, Apple (symbol: AAPL) has been having one of the wildest rides, smashed down considerably—even after Friday’s horrendous ride down—to as low as $92 per share in the opening trade. AAPL had traded as high as $134 in late spring, and the ongoing troubles in China are likely to be influencing this trade. Nonetheless, as of just after 10 a.m., the company had recovered over 10 points from its early low and stands at 102.73.

Oil isn’t helping markets this morning, either. West Texas Intermediate (WTI) is down a painful $2.03 bbl. this morning, substantially lower than it fell during its drop earlier in the year and leading to even more questions as to why the price at the pump has not already fallen below $2 per gallon in most of the U.S. Refinery outages are allegedly the culprit, but we suspect that corporate greed is the real invisible hand behind the failure of pump prices to drop.

But anomalies also exist today. Natural gas is up slightly this morning, defying the general, sustained decline in nearly all commodity prices. Gold was briefly off this morning as well, although gold futures are now up $4.30 at 1163.90. At least for the moment, gold seems to be returning to its traditional role as a hedge against disaster, after at least a year’s worth of obvious manipulation downward by hands that have not yet shown themselves.

We’ll be back with updates today as needed.

Trading tips

See our earlier article. We’re all on our own today. Some stocks are halted. But generally, if traders want or need to get out of a market like this, it’s best to wait for at least some stability. Those who stampeded out during this morning’s rush for the exits may regret it, even later in the day.

That said, we’re in bear market territory that likely established itself late last week. So caution and cash are now the way to play. Buying on dips may no longer be rewarding, at least near term.

Good luck!


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Terry Ponick
Biographical Note: Dateline Award-winning music and theater critic for The Connection Newspapers and the Reston-Fairfax Times, Terry was the music critic for the Washington Times print edition (1994-2010) and online Communities (2010-2014). Since 2014, he has been the Business and Entertainment Editor for Communities Digital News (CDN). A former stockbroker and a writer and editor with many interests, he served as editor under contract from the White House Office of Science and Technology Policy (OSTP) and continues to write on science and business topics. He is a graduate of Georgetown University (BA, MA) and the University of South Carolina where he was awarded a Ph.D. in English and American Literature and co-founded one of the earliest Writing Labs in the country. Twitter: @terryp17