2) Down 1 to 199
3) Down 200 to 499
4) Down 500 to 999
5) Down 1000+
Here's my take:
Too bad homedebtors and flippers can't just hit the "sell" button like stock owners, eh? And remember, stocks and bonds are not house prices. Iphones aren't house prices either FYI...
What happened last week in the debt markets, where essentially the engine froze up and exploded, is not fixable. This is the period of "discredit" from Manias, Panics and Crashes that follows all leveraged booms. It will, and it must, run its course. Watch for major LBOs to come apart now.
Since this was the mother of all booms, this period of self-feeding "discredit" will amaze.
However, that said, the impact on stocks on a day by day basis is unknown. Yes, there should be a classic rush to cash and safety, where panicked people sell everything they have to raise cash in a frenzy. But panics take time - look how long the NASDAQ bust took - not just one day.
Meanwhile, the meltdown in the debt markets, coupled with a big drop in stocks last week, means that hedge funds are failing as I type. And there will be forced selling in the market as they unwind. The only way for some funds to survive is to risk everything they've got left Monday to try to defend. We'll see if they have enough ammo.
So, my prediction for Monday is the #1 day in the history of the world for stock trading volume. Wild swings. And a big loss (700 points) at the end. But I honestly don't have confidence in this prediction - stocks can be wild. And that's why I'm happy watching from the sidelines, except for my miners, alt energy, oil and REIC shorts.