“The highlight of the night was China, which after halting half of its stocks, disallowing major stakeholders (5% holding or more) from selling shares for 6 months, and threatening to arrest short sellers, the Shanghai Composite managed to gain nearly 6% on the day. What might be most impressive is that the index was down…
This is nothing right now…almost a tiptoe through the tulips. Doesn’t resemble flashcrash in any way. Back then, S&P dropped 100 points and came back up. If this is a hacking, then a lot of confidence is lost…but would they tell us if it was a hacking? There was a tweeted warning last night about…
SOURCE: http://www.bloomberg.com/news/articles/2015-07-08/this-is-why-so-many-chinese-companies-are-suspended
For years, you have been told that the economic numbers that were coming out of China were suspect. For years, you have been told to go to youtube to look at China’s ghost cities! https://www.youtube.com/watch?v=wm7rOKT151Y And then came the recent 100% gain in months. 1999 anyone? We don’t pretend to know exactly how this plays…
More deterioration BUT major indices rebounded nicely setting up some upside testing here. The bigger issue is the energy complex with another leg down and the semis worsening. Keep in mind, it is the underlying weakness we have been targeting for you and telling you to avoid. If more weakness shows up, eventually, major indices…
Futures are down a decent amount on the “no” vote out of Greece. We are being bombarded with “what now” questions but think we just update you on everything we have been telling you. Please do not think markets may be heading down out of nowhere. We have been writing to you about the deterioration…
Fake job’s number is out! Life is better. Things are better except at first blush, over 400,000 left the workforce in the past month. The fake rate is now 5.3%. The problem is that since this administration took office, the labor participation rate has crashed…enabling the rate to come down. If you added back all…
SOURCE: http://www.bloomberg.com/news/articles/2015-06-30/hidden-china-stock-debt-revealed-in-online-loans-at-22-interest
WHO IS SAVING WHO? Most everyone is forgetting the most important laws of lending. When you owe small amounts, it is your problem. When you owe gargantuan amounts that will never be paid back, it is the lender’s problem! So who is saving who? The simple fact is that this is a problem for the…
“It’s never bad…until markets say otherwise!” Looks like it may be time to roll out our mantra that we used during 07. You remember the line. We used this line time and time again to describe the debt and leverage in the system in the leading up to the 08 crisis. Back then, we were…
