After seeing the stock markets around the world freefall the past few days, it seems likely that the Dow Jones will open to massive falls on Tuesday.

With stock markets in other countries falling by around 5%-8%, I figure we're looking at anywhere between 500-1000 points being wiped out on the Dow Jones, though I'd expect the worst losses to be offset by a late rally.

With that in mind, I'd expect the Dow Jones to drop from it's current 12,099 position to around 11,299, but then rally to around 11,480 before the session closes.

However, I would not be entirely surprised if 1000 points or more were wiped out - if that late rally never arrives then I'd expect a bear market with no limits. Could even see 1200 points down in a worst case scenario.

Just my personal thoughts - will be watching the Dow very closely over the next 24 hours.

We could see a circuit breaker triggered... if the dow drops 1350 points by 1 pm, they'll halt trading for at least an hour...

All hell breaking loose in Asia:
BBC NEWS | Business | Markets continue to fall sharply




I am so going to be watching the Dow today.

Its going to be a lot of fun out there...

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It is not smart to play it safe but it is safe to play it smart.

Since I don't play the Stock Market game it's fun to sit back and watch.

In my opinion the brokers are doing nothing more than profit taking and I don't blame them. Come the first quarter 2009 you can bet the U.S. Gubment will once again shuffle the tax code.

One would be foolish to sit on substantial Capital Gains that would be taxed at 15% now and wait for the Gubment to raise it to 40% "to make things fair" for young children and seniors their favorite "victims."

That's a 25% loss via Gubment interference.

It would not surprise me if all markets were down substantially by the end of this year waiting to see which axe hole gets elected then of course change all the tax laws again.

Of course once the "new" tax code is published the brokers and investors will do what they always do and reinvest in segments of the market that are most advantageous to them.

Then the politicians will say, "See, vote for me and I'll set you free" when in fact they had nothing to do with it. Everyone was just waiting for them to get out of the way so we could get back to business.

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Gary Spicuzza, *SAFE
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*Self Appointed Financial Expert

...and don't we all wish that the government would get out of the way and leave the markets alone?

I sure do... but that probably won't happen. You just have to learn to deal with it.

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It is not smart to play it safe but it is safe to play it smart.

I hope it loses more than that; I make all of my money buying when everyone else starts to sell. I put together some hefty portfolios, last year I made a 260% return from nothing more than chaotic emotional selling frenzies off 5 stocks I picked.

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Well, the Fed panic to drop interest rates seems to have avoided a crash. But as the Dow Jones hasn't even recovered to opening levels, it suggests that Fed has totally lost the reigns on the economy, and can do nothing now to invigorate it other than slow the pain down. The sticking plaster again.

Should have had a crash and had done with - now we'll just see it happen over months instead of hours...IMO.

Pretty good prediction there. I watched the Dow like a hawk today after the losses in world markets yesterday.