Dow Jones Falls Over 500 Points! Massive Stock Market Sell Off Continues

SMF Warned Investors and Traders of the Pending Correction on 5/3/2011.


Concerns about global economies continued to wreak havoc on commodities today. In turn, the CRB Commodity Index dropped 2.8% to a near seven-month low.

Oil suffered one of the steepest drops. Specifically, crude oil prices settled at 86.63 per barrel for a 5.8% loss. That marked its greatest single-day drop since May 5 -when it fell more than 8% - on the back of concerns about global economic health. Futures prices had recorded intraday lows of $86.04, which marks the commodity's worst level since February 18.

Natural gas prices closed lower by 3.4% at $3.95 per MMBtu. Futures prices had actually traded higher in early pit trade, but bearish inventory data spurred a reversal that took the commodity as low as $3.92 per MMBtu, which made for its worst level since mid-March.

However, safe havens like gold and silver benefited from weakness in the broader commodity complex and a plunging stock market. In morning trade, December gold, which eventually settled lower by 0.5% to $1658.20 per ounce, rallied to a new all-time high at $1684.90 per ounce. September silver, which lost 5.6% to close at $39.42, traded back above $42 to a three-month high of $42.30 per ounce. The late morning plunge suffered by the pair of precious metals took gold as low as $1642.20 per ounce and silver down to $38.47 per ounce. Many traders attributed the sell-off to liquidation that followed margin calls in other asset classes. DJ30 -404.19 NASDAQ -109.16 SP500 -47.09 NASDAQ Adv/Vol/Dec 243/2.43 bln/2383 NYSE Adv/Vol/Dec 175/1.17 bln/2928.


The Dow Jones industrial average was down 436.21 points, or 3.67 percent, at 11,460.23. The Standard & Poor's 500 Index was down 51.32 points, or 4.07 percent, at 1,209.02. The Nasdaq Composite Index was down 118.51 points, or 4.40 percent, at 2,574.56.

New 52 week highs include: ARR, AUY, CBOU, EM, EXLS, KFT, MKTX, NATR, ORIT, PEET, RGLD, TLVT

New 52 week lows include: AEG, AEIS, AFL, AGO, AKS, ALNY, AMCC, AMCN, AMKR, AONE, ARC, ARO, ART, AUO, AUXL, AVNW, AVP, AVY, BAC, BBOX, BBY, BCRX, BCS, BMTI, BRK.B, BSBR, BXG, BZ, BZH, C, CBEY, CBLI, CEDC, CENT, CENTA, CETV, CHKE, CLGX, CMA, CMED, CNA, CPLP, CPY, CRU, CS, CSC, CSIQ, CTB, CUK, CVGI, CVTI, CWH, CX, CXW, CYTX, DCTH, DHT, DLB, DNDN, DRYS, DSX, DVR, EBR, EBR.B, EJ, ELX, ENTR, ENZN, EPAX, EV, EXH, EXM, FBR, FFCH, FGP, FOE, FRO, FSLR, FST, FUR, GASS, GCI, GERN, GGB, GHL, GLP, GLW, GMXR, GNK, GNVC, GNW, GOL, GTIV, GVA, H, HA, HCBK, HGG, HGSI, HNP, HPQ, HRS, HSOL, HTH, IBI, ICA, IN, INSM, INSU, ISIG, ITUB, JADE, JEF, JNS, JOE, KBH, KBW, KEP, KIRK, KONG, KSWS, KUTV, LAMR, LEAP, LF, LOGI, LPL, LPS, LUV, LYG, MAR, MAS, MBLX, MDC, MDP, MLNK, MNKD, MOTR, MSO, MT, MTG, MTOR, MXL, MYRX, NAT, NCIT, NCMI, NKTR, NM, NMM, NMR, NOA, NOK, NRGY, NTRS, NWL, NX, NYB, OCLR, OFC, OI, OMER, ORA, ORI, ORN, OSG, OSK, OSTK, PBNY, PBR, PBR.A, PCAR, PFCB, PHG, PHH, PHM, PLX, PMCS, PNSN, POZN, PRE, PT, PTNR, PVA, QGEN, QSFT, QUAD, RAIL, RBCN, RBS, RDN, RIMM, RMBS, RMD, RT, RYL, SCOK, SCOR, SEH, SFG, SFL, SHAW, SHO, SID, SKM, SMA, SMSI, SNDA, SNE, SOL, SPF, SPP, SPRT, STP, STRI, SUSQ, SVA, SVNT, THG, THO, TI, TIE, TKC, TNK, TNP, TPC, TRI, TRIT, TRMD, TSL, TSPT, TSRA, TX, UBS, UIS, UMC, USG, USM, USU, VE, VQ, WABC, WFR, WIT, X, YGE, YHOO, ZZ

Tags dow "dow jones" crash "market crash" "stock market" stocks trading stock market markets commentary "dow down 500 points" "technical analysis" "trading education" news politics debt fed "federal reserve" QE3 "us dollar" obama birthday present wall street' economy economic analysis financial chart charts stock market, options trading, stock trading, online trading, technical analysis, day trading, swing trading, trend trading, trend analysis, stock market commentary, stock market videos, economic analysis, stock futures commentary, investment analysis, political commentary, stock formula trading, after hours trading, gold, silver, futures, forex, "MARKET CRASH" "STOCK MARKET CRASH" "DOW JONES INDUSTRIAL AVERAGE" "Debt Ceiling" "stock market sell off" "day trading stocks" "online trading" "swing trade" "swing trading" "day trading" "day trade" "online stock trading" "us economy" DJIA "unemployment rate" "dow jones index" "dow jones technical analysis" "online stock market trading" "stock market trading" "trader education" "ron paul" CNBC "jim cramer" "marc faber" "gerald celente" "max keiser" "alex jones" "day trading education" "commodity stocks" "gold prices" "silver prices" "yen carry trade" "stock market education" "market commentary" "stocks sell off"

[BloggingNotes]

Precious metals went down today, too. I wonder if that had to do with covering short sells?

[MilhamaH]

I don't know how anyone is trading this on the intraday basis... The swings and noise can whip any strategy to nothing. There is way more on the downside.

[shaorin]

@StockMarketFunding well of course I care about the economy I just would like to know the details on how this will effect it

[shaorin]

sooo what does this mean? is this really bad?

[French_Connection]

I think I have already heard it all...
Robert Lichota

[jajessee]

So what do us sucks do .I bought a bunch of the 3X inverse funds you recommended. UP allot The problem Is I never really know when to sell.You ought to do a news letter for us suckers that cannot watch the screen most of the day. Got to give you credit watched you for about a year and you nailed

[mystic]

@StockMarketFunding I see this to, the crazy thing is we all have the means to make our own products here and the land to do it with. As jobs go all we really need to do is invest more in the usa land so we can build factory's to sell only to us.. We as a people need to re-industrialize our buisness here, I do see you know what you are talking about, its people like us who need to make them only deal with our selves for now.This is the only way out of it that I see.

[izzysykopth]

@StockMarketFunding Ive never even dabbled in any type of investing and I saw this coming. What about the estimated $700 trillion in toxic derivatives? Will it be game over when they crash the bond market?

[mystic]

@Geostrategic1 This should happen soon, I just left the market for food with my family and well, I was really suprised to see alot of people stocking up, Alot of shelves where empty As I told my wife this will happen soon, she did not belive me, I hate that, lol.When people start to see there banks loosing stocks there will be a hugh run for the banks.Im so glade we closed our account and only use our house for our bank, I will be sad to see so many people loose so much in bonds and stocks.

@StockMarketFunding Yes Sir! You fully understand. CNBC and for that matter the vast majority of those reporting financial news domestically & worldwide seem to be under an unwritten rule to never even discuss pre-positioning puts. It's more likely the buys upstairs, read media CEOs, who have their bloody brokers trading both side$ of multi-markets & keep the obvious disinformation going that bearish markets are always beyond horrific for everyone Only bullish trades. It's incredible.

[TheSMFTRADER]

How does the old video go...BUY THE DIP lol, prices go up, markets go down, congress goes on vacation

[mystic]

@StockMarketFunding China tells U.S. "good old days" of borrowing are over, this right here is the breaker, I belive this is all we needed.If this is to be true then we are closer then we all thought.Its like a country folding into its self with no help, it is sad that even china will not deal with us any longer. But, I will say that with out there help for leanding I see a crash in the market with in weeks even mabey days.I pray not, we all need to pray.

[SMFTrader]

@ChartingPlatform I can't wait to see their faces on fast money tonight

[secretbonus]

Down over 50 dow points for every 10 years Obama was alive... happy birthday!!!! LOL

[izzysykopth]

@mystic81006 We dont own the land IMF does. You do not own your house note the deed says 'occupant' or 'tenant'. If you OWNED it you would not have to pay rent (taxes). ALL land within the Federal US is already pledged to the International Fund for Redevelopment and Reconstruction. Your birth certificate is a contract from birth til death to pay interest on a debt you did not incur. All National Parks ALL National Forests same thing. We have been sold out!!!

[SMFTrader]

Too bad all these bulls weren't listening to you earlier Mario...now they want to go to cash!

[mystic]

What I mean by this is we have a land full of ritches, land doing nothing, alot of people see this a candy, there are alot of countrys trying to make us a poor country so they can take us over all together.I know it sounds stupid to say and I dont mean to scare people but we americans have not done much with this land of ours, almost nothing, and china sees it, so so alot of other countrys, they are happy about all of this.Go to there channels and fourms and you will see how happy they are.

[mystic]

@izzysykopth I know all this and its crap, But even that we dont trully have owner ship no one does, when you die you cant take it with you, my point is it would be nice to trully own something, and in our truth to our father in heavIn we will.But here on earth things are about to get real bad. We where sold out after the cival war my good friend.before the cival war we freely owned our lands, after this war we had to pay taxes on our lands.But this holds true for most the world now to.

[porousorificePilot]

@scisslehannd22 Dont forget a few dogs! There worth 10 time what it takes to feed them.
By the way can i join you? LOL.

peace

[scisslehannd]

hello 312th viewer...ive been waiting to meet you