"Jesse Livermore," who pseudonymously blogs at Philosophical Economics, predicted on the eve of the Alibaba IPO that the market would put in its yearly high in the first hour of trading on that day. He nailed that trade to the hour, and since then the S&P 500 is down more than 6%. (Jesse Livermore is a famed stock market trader who made and lost millions of dollars shorting the stock market in the early 20th century — the modern day Twitter user operates under this cover.)
Now, Livermore is warning that we might be at the cusp of something worse.
"I don't mean to be alarming, but this is 1987-esque," he tweeted.
Monday was the third straight day of losses for the major stock indexes, and the second time in three days that the Dow fell more than 200 points while the S&P 500 just had its worst three-day plunge since November 2011.
[Here's the full tweet:
I don't mean to be alarming, but this is 1987-esque. But, doesn't mean it will end that way. Could have already ended, for all we know.]