Does stock market know bad news is coming?

[Ugnmoose]

Dow down 250 points in two days. Insiders ususally get bad news in advance. Could be a coinkydink, but I don't think so.

[mmonk]

1. Some companies are reporting

that they will miss their profit projections for the quarter. Investing is all about company performance (not necessarily politics though something like a catastrophic event will spook the market).

[BlueEyedSon]

2. Yup, and the minute the news is announces we'll have a 1%+ rally

[Deja Q]

3. They want it to crash.

So let it crash.

[mshasta]

4. down and down she goes

http://stockcharts.com/def/servlet/SharpChartv05.ServletDriver?chart=fnm,uudaclyymy&r=9547

[swag]

5. Stock market has seen plenty of public bad news:

Some early corporate profit warnings, a generally bad public mood about Bush, Katrina, Rita, and prices. Today's ISM survey showed the services sector, which accounts for about 80% of the US economy, grew at a far slower rate than anticipated by polled analysts for September. In addition, high energy prices are beginning to erode both business profit margins and consumer spending, and natural gas prices are spooking the hell out of everybody as we roll into winter.

Pile on top of that this week's chorus of Fed officials crowing about inflation, indicating that the Fed will quit raising rates around 4.25% at the earliest, and many investors and traders thought they had plenty of reason to sell stocks.

The information cascades have been profoundly negative since Katrina showed once and for all that the emperor had no clothes. And the US consumer had shown signs of capitulating even before the hurricane.

[kansasblue]

6. When it come to $$$$$, the big wheels know.

[tom_paine]

7. And that's WITH the PPT (Plunge Protection Team) $$$$

artificially propping it up.

Imperial Amerika is like a drunk in denial...when the problems finally catch up to it, the return to reality will be that much harder and more massive.

[spanone]

8. Bush* economy is a house of cards....just like his foreign policy.

[Angry Girl]

9. REPORT: U.S. Government Manipulating the Stock Market

A Canadian report charges that the U.S. government has been surreptitiously intervening in the American stock market, buying shares in conjunction with private parties to prop it up to prevent "destabilizing" declines.

The problem, Toronto-based Sprott Asset Management said in its report, is that this under-the-table manipulation may lead to abuses that could seriously hurt unsuspecting investors and the overall U.S. economy.

"Most people probably assume that the U.S. stock market is free of government interference," Toronto-based Sprott Asset Management authors John Embry and Andrew Hepburn said. "Current mythology holds that share prices rise and fall on the basis of market forces alone. Such sentiments appear to be seriously mistaken."

The Sprott report quotes publications that "strongly suggest that since the October 1987 crash, the U.S. government has periodically intervened.

and it goes on but here's the link:

http://www.zwire.com/site/news.cfm?newsid=15197957&BRD=985&PAG=461&dept_id=161556&rfi=6

And here's the actual report:
WARNING This is a PDF file!
http://www.sprott.com/pdf/pressrelease/TheVisibleHand.pdf

[marmar]

11. Why is it...

that we need to depend on Canadians and Brits to tell us the truth? I want off this island!

[nadinbrzezinski]

12. And sone anerucabs

fascinating read, explains WHY we have had not a crash... never mind all indicators to the contrary... hmmm connect dots with some PNAC papers, wow

[natrat]

10. mkt tends to sell off in the fall

i always think it will go down like 1929,,maybe this time