Archive for 2015

Chinese Stocks Crash Most In 19 Years, Re-Open Limit Down (Despite PBOC Hail Mary)

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Carnage…

  • *CHINA STOCK PANIC SELLING TO CONTINUE, CENTRAL CHINA ZHANG SAYS

This leave China's CSI-300 broad stock index futures up just 7% year-to-date…

  • *CHINA CSI 500 STOCK-INDEX FUTURES FALL BY MAXIMUM 10% LIMIT
  • *CHINA CSI 500 STOCK-INDEX FUTURES FALL BY LIMIT FOR 2ND DAY

  • *HKEX DROPS AS MUCH AS 7.3%, MOST SINCE SEPT. 2011
  • *SHANGHAI COMPOSITE INDEX EXTENDS DROP TO 7.5%
  • *SHANGHAI COMPOSITE HEADS FOR BIGGEST 3-DAY DROP SINCE 1996

Carnage-er…

  • *CHINA'S CSI 300 INDEX FALLS 3.4% TO 4,190.3 AT BREAK
  • *CHINA'S SHANGHAI COMPOSITE FALLS 3.8% TO 4,035.48 AT BREAK
  • *CHINA'S CSI 500 STOCK INDEX FUTURES EXTEND LOSSES TO 5.7%
  • *CHINEXT INDEX PLUNGES 7.8% FOR 3-DAY 20% SLIDE

After The People's Daily proclaimed… "investors were moved to tears" thanks to the PBOC's actions…

  • *FOUNDATIONS FOR A-SHARES ARE `SOLID': CHINA SECURITIES JOURNAL
  • *CHINA STOCK MARKET TO HAVE 30 YEARS `GOLDEN AGE': SEC. JOURNAL

The bounce is dead. CHINEXT – China's tech-heavy high beta 'Nasdaq' – is down 5-6% today, 19% in 3 days, and 33% from highs in early June…!

In 3 weeks, it has given up half its gain of the year…

*  *  *

All that pent-up demand to be ignited among the farmers and housewives of China thanks to a double rate cut (RRR and benchmark) enabled a mere 2.5% bounce in Chinese stocks at the open which has now completely been erased as Shanghai enters a bear market. As The South China Morning Post's George Chen notes, the most dangerous idea gaining traction in the Chinese stock market is the naïve consensus among ordinary investors that no matter how bad the market gets, the Communist Party will eventually rescue everyone. If not them then, as Chen concludes, "It's time to wake up."

Spot the double-rate cut 'bounce'…

  • *SHANGHAI COMPOSITE SET FOR BEAR MARKET AFTER 20% DROP FROM HIGH

Decidely not what the doctor ordered… and as The South China Morning exclaims, many Chinese investors who have a planned economy mindset, believing government should help them, may well have a surprise coming…

The most dangerous idea gaining traction in the Chinese stock market is the naïve consensus among ordinary investors that no matter how bad the market gets, the Communist Party


continue reading





Chinese Stocks Are Collapsing, Despite PBOC Hail Mary

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Carnage…

  • *CHINA'S CSI 300 INDEX FALLS 3.4% TO 4,190.3 AT BREAK
  • *CHINA'S SHANGHAI COMPOSITE FALLS 3.8% TO 4,035.48 AT BREAK
  • *CHINA'S CSI 500 STOCK INDEX FUTURES EXTEND LOSSES TO 5.7%
  • *CHINEXT INDEX PLUNGES 7.8% FOR 3-DAY 20% SLIDE

After The People's Daily proclaimed… "investors were moved to tears" thanks to the PBOC's actions…

  • *FOUNDATIONS FOR A-SHARES ARE `SOLID': CHINA SECURITIES JOURNAL
  • *CHINA STOCK MARKET TO HAVE 30 YEARS `GOLDEN AGE': SEC. JOURNAL

The bounce is dead. CHINEXT – China's tech-heavy high beta 'Nasdaq' – is down 5-6% today, 19% in 3 days, and 33% from highs in early June…!

In 3 weeks, it has given up half its gain of the year…

*  *  *

All that pent-up demand to be ignited among the farmers and housewives of China thanks to a double rate cut (RRR and benchmark) enabled a mere 2.5% bounce in Chinese stocks at the open which has now completely been erased as Shanghai enters a bear market. As The South China Morning Post's George Chen notes, the most dangerous idea gaining traction in the Chinese stock market is the naïve consensus among ordinary investors that no matter how bad the market gets, the Communist Party will eventually rescue everyone. If not them then, as Chen concludes, "It's time to wake up."

Spot the double-rate cut 'bounce'…

  • *SHANGHAI COMPOSITE SET FOR BEAR MARKET AFTER 20% DROP FROM HIGH

Decidely not what the doctor ordered… and as The South China Morning exclaims, many Chinese investors who have a planned economy mindset, believing government should help them, may well have a surprise coming…

The most dangerous idea gaining traction in the Chinese stock market is the naïve consensus among ordinary investors that no matter how bad the market gets, the Communist Party will eventually rescue everyone.

The central bank surprised everyone with its announcement on Saturday that it will cut its benchmark deposit and lending rates by 25 basis points – the fourth reduction since November.

Meanwhile, it also decided to reduce the reserve requirement ratio at selected banks to further ease liquidity in the banking system.

The unusual "double cut" move came just 24 hours after more than US$760 billion was wiped off the value of mainland stocks


continue reading





The NATO Buildup On Russia’s Border – Groundless Pretext For Cold War Revival

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Patrick Smith via Salon.com,

Have you picked up on the new trope du jour? We are all encouraged to bask in our innocence as we lament the advent of a new Cold War. The thought has been in the wind for more than a year, of course, at least among some of us. But we witness a significant turn, and I hope this same some of us are paying attention.

As of this week, leaders who know nothing about leading, thinkers who do not think and opinion-shaping poseurs such as Tom Friedman are confident enough in their case to sally forth with it: The Cold War returns, the Russians have restarted it and we must do the right thing – the right thing being to bring NATO troops and materiel up to Russia’s borders, pandering to the paranoia of the former Soviet satellites as if they alone have access to some truth not available to the rest of us.

James Stavridis, the former admiral and NATO commander, quoted in Wednesday’s New York Times: “I don’t think we’re in the Cold War again—yet. I can kind of see it from here.”

I can kind of see it, too, Admiral, and cannot be surprised: NATO has missed the Cold War since the Wall came down and the Pentagon’s creature in Europe commenced a quarter-century of wandering in search of useful enemies. At last, the very best of them is back.

The inimitable (thank goodness) Tom Friedman on the same day’s opinion page: “This time it seems like the Cold War without the fun—that is, without James Bond, Smersh, ‘Get Smart’ Agent 86’s shoe phone,” and so on.

Leave it to Tom to recall the single most consequentially corrosive period in American history by way of its infantile frivolities. He is paid, after all, to make sure Americans understand events cartoonishly rather than as historical phenomena with chronology, causality and responsibility attaching to them.

You have here a classic one-two. Stavridis’ successors in the military get on with the business of aggressing abroad and trapping Russia in a frame-up J. Edgar Hoover would admire, while Friedman buries us in marshmallow fluff sandwiches.

A couple of columns back I wondered aloud as to what all the talk of renewed Russian aggression, begun in mid-April, was all about.…
continue reading





Here Comes “Prexit”: Puerto Rico In “Death Spiral”, Debts Are “Not Payable”, Governor Refuses To “Kick The Can”

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

As we noted last night, for a whole lot of time nothing at all can happen under the guise of “containment”… and then everything happens all at once. Because not even two full days after Greece activated the “Grexit” emergency protocol, leading to capital controls, and a frozen banking system and stock market, moments ago the NYT reported that the default wave has jumped the Atlantic and has hit Puerto Rico whose governor Alejandro García Padilla, saying he needs to pull the island out of a “death spiral,” has concluded that the commonwealth cannot pay its roughly $72 billion in debts, an admission that will probably have wide-reaching financial repercussions.

In other words, first Greece, and now Puerto Rico may be in a state of Schrodingerian default. Why the ambiguity? Because while Greece is not technically in default until July 1, Puerto Rico does not even have an option to declare outright default. But that doesn’t mean that the commonwealth will service it.  Quoted by the NYT, García Padilla said “The debt is not payable.” He added that “there is no other option. I would love to have an easier option. This is not politics, this is math.

Funny: math went out the window in 2009 when central bank “faith” took over. The problem is that faith has run out, as has the “political capital” to keep an insolvent global system running, and first Greece now Puerto Rico are finally realizing it.

As the NYT adds, this is “a startling admission from the governor of an island of 3.6 million people, which has piled on more municipal bond debt per capita than any American state.”

More:

A broad restructuring by Puerto Rico sets the stage for an unprecedented test of the United States municipal bond market, which cities and states rely on to pay for their most basic needs, like road construction and public hospitals.

That market has already been shaken by municipal bankruptcies in Detroit; Stockton, Calif.; and elsewhere, which undercut assumptions that local governments in the United States would always pay back their debt.

The immediate implication, as accurately presented by the NYT, is that Puerto Rico’s call for debt relief on such a vast scale could raise borrowing costs for other local governments as investors…
continue reading





Artist’s Impression Of This Week In America

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Quite a week…

Source: Cagle Post





“Contained” Greek Contagion Smashes Japanese Banks Lower

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Despite all the ‘smartest men in the room’ proclaiming that Greece doesn’t matter, and Greek risks are “contained”, Japanese stocks are tumbling led by bank stocks. Topix Banks Index has plunged the most since Feb 2014 (and 2nd most since the Taper Tantrum in 2013).

“Contained”… Japanese banks down 3.5% – the most in 18 months

It appears – just as we have said over and over – in the interconnected world of repo, ZIRP, and rehypothecation – size doesn’t matter, it’s collateral chains that matter… and shit’s breaking.

* * *

We await the BoJ’s decision on how much Japanese bank stocks to load on the back of Japanese taxpayers before we proclaim this a problem.

Charts: Bloomberg





The Bush Family Goes “All In” For Number Three (With The Help Of Its Bankers)

Courtesy of Nomi Prins at TomDispatch.com

Money, they say, makes the world go round. So how’s $10 billion for you? That’s a top-end estimate for the record-breaking spending in this 1% presidential election campaign season. But is “season” even the right word, now that such campaigns are essentially four-year events that seem always to be underway? In a political world stuffed with money, it’s little wonder that the campaign season floats on a sea of donations. In the case of Jeb Bush, he and his advisers have so far had a laser-focus on the electorate they felt mattered most: big donors. They held off the announcement of his candidacy until last week (though he clearly long knew he was running) so that they could blast out of the gates, dollars-wise, leaving the competition in their financial dust, before the exceedingly modest limits to non-super PAC campaign fundraising kicked in.

And give Jeb credit — or rather consider him a credit to his father (the 41st president) and his brother (the 43rd), who had Iraq eternally on their minds. It wasn’t just that Jeb flubbed the Iraq Question when a reporter asked him recently (yes, he would do it all over again; no, he wouldn’t… well, hmmm…), but that Iraq is deeply embedded in the minds of his campaign team, too. His advisers dubbed the pre-announcement campaign they were going to launch to pull in the dollars a “shock-and-awe” operation in the spirit of the invasion of Iraq. Now, having sent in the ground troops, they clearly consider themselves at war. As the New York Times reported recently, the group's top strategist told donors that his super PAC "hopes to 'weaponize' its fund-raising total for the first six months of the year."

The money being talked about$80-$100 million raised in the first quarter of 2015 and $500 million by…
continue reading





H-OPA!

Courtesy of ZeroHedge. View original post here.

Submitted by williambanzai7.

An ode to a Grecian contagion

Austerity victims are ragin’

These debts can’t be paid

It’s a Klepto charade

And soon WWIII we’ll be wagon’

The Limerick King





How Could The “Greek Experts” Be So Wrong?

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

With Greece disintegrating before our very eyes, here are some recent blasts from the recent and not so recent past, showing just how clueless some of the most and least respected, strategists, bureucrats, drama majors, and former Goldman employees have been when it comes to Greece.

First, here is Tom Lee, best known for predicting in August 2008 that stocks will rise “much higher”  by the end of 2008, with the S&P expected to rise to 1450, instead of plunging some 40% lower and wiping out countless people who listened to Lee. From June 23, 2015:

The Greek debt drama is a “sideshow” for U.S. investors, who should be encouraged by signs of a stronger American economy, longtime stock market bull Thomas Lee said Tuesday.

“Greece isn’t the systemic risk that it was three years ago,” he told CNBC’s”

“Focus on U.S. fundamentals, which have been really good.”

Then here is Dennis Gartman, telling what little viewers CNBC has left, that he wants to be a “buyer of European stocks.”

Going further back in time, how can one possibly forget Jean-Claude “When it is serious you have to lie” Juncker’s premature victory lap from October 2014, best summarized in the tweet below:

Oops.

There was, of course, this humorous interlude:

But the single, most glorious example of clueless punditry comes from none other than Mario Draghi himself who back on April 4, 2013 lied to everyone’s face with the following:

Scott Solano, DPA: Mr Draghi, I’ve got a couple of question from the viewers at Zero Hedge, and one of them goes like this: say the situation in Greece or Spain deteriorates even further, and they want to or are forced to step out of the Eurozone, is there a plan in place so that the markets don’t basically collapse? Is there some kind of


continue reading





The War On Some Drugs

Courtesy of ZeroHedge. View original post here.

Submitted by Tyler Durden.

Submitted by Doug Casey via InternationalMan.com,

Drugs are a charged subject everywhere. Longtime readers know that although I personally abstain from drugs and generally eschew the company of users, I think they should be 100% legal.

Few people consider how arbitrary the current prohibition is; up until the 1920s, heroin and cocaine were both perfectly legal and easily obtainable over the counter. Some people “abused” them, just like some today “abuse” fat and sugar (because they’re enjoyable).

But drugs are no more of a problem than anything else; life is full of problems. In fact, life isn’t just full of problems; life is problems. What is a problem? It’s simply the situation of having to choose between two or more alternatives. Personally, I believe in people being free to choose, and I rigorously shun the company of people who don’t.

Hysteria and propaganda aside, the fact is that most recreational drugs pose less of a health problem than alcohol, nicotine, or simple lack of exercise.

Conan Doyle’s Sherlock Holmes (of whom I’m a great fan) was an aficionado of opium products. Sigmund Freud enjoyed cocaine. Churchill is supposed to have drunk a quart of whiskey daily. Dr. William Halstead, father of modern surgery and cofounder of Johns Hopkins University, was a regular user throughout his long and illustrious career, which included inventing local anesthesia after injecting cocaine into his skin.

Insofar as recreational drugs present a problem, it arises partly from overuse, which is not only arbitrary, but can be true of absolutely anything. The problem comes, however, mainly from the fact that they’re illegal.

Alcohol provides the classic example. It wasn’t much of a problem in the US before the enactment of Prohibition in 1920, and it hasn’t been one since its repeal in 1933. Making a product illegal artificially and unnecessarily turns both users and suppliers into criminals.

Because illegality makes any product vastly more expensive than it would be in a free market, some users resort to crime to finance their habits. Because of the risks and artificially reduced supply, the profits to the suppliers are necessarily huge – not the simple businessman’s returns to be had from legal products.

Just as Prohibition of the ’20s turned the Mafia from a small underground group of thugs into big business, the War on Drugs
continue reading





 
 
 

Zero Hedge

Auto Shares Surge As Fiat, Renault Confirm Merger Talks

Courtesy of ZeroHedge. View original post here.

With President Trump in Japan for a state visit and most of Europe headed to the polls to vote in the quinquennial EU Parliamentary elections, there was enough news to keep market watchers occupied during what was supposed to be a quiet holiday weekend in the US. 

But on top of these political headlines, on Saturday afternoon, the news broke that Italian-American carmaker Fiat Chrysler had approached France's Renault with a merger proposal that would leave the shareholders of each carmaker with half of the combined company, in a tie-up that would create the world's third-largest au...



more from Tyler

Phil's Favorites

Trump and the problem with pardons

 

Trump and the problem with pardons

Courtesy of Andrew Bell, Indiana University

As a veteran, I was astonished by the recent news that President Trump may be considering pardons for U.S. military members accused or convicted of war crimes. But as a scholar who studies the U.S. military and combat ethics, I understand even more clearly the harmful long-term impact such pardons can have on the military.

My researc...



more from Ilene

Insider Scoop

Jefferies Sees 60-Percent Upside In Aphria Shares, Says Buy The Dip

Courtesy of Benzinga.

After a red-hot start to 2019, Canadian cannabis producer Aphria Inc (NYSE: APHA) has run out of steam, tumbling more than 31 percent in the past three months.

Despite the recent weakness, one Wall Street analyst said Friday that the stock has 30-percent upside potential. 

The Analyst

Jefferies analyst ...



http://www.insidercow.com/ more from Insider

Kimble Charting Solutions

DAX (Germany) About To Send A Bearish Message To The S&P 500?

Courtesy of Chris Kimble.

Is the DAX index from Germany about to send a bearish message to stocks in Europe and the States? Sure could!

This chart looks at the DAX over the past 9-years. It’s spent the majority of the past 8-years inside of rising channel (1), creating a series of higher lows and higher highs.

It looks to have created a “Double Top” as it was kissing the underside of the rising channel last year at (2).

After creating the potential double top, the DAX index has continued to create a series of lower highs, while experiencing a bearish divergence with the S...



more from Kimble C.S.

Chart School

Brexit Joke - Cant be serious all the time

Courtesy of Read the Ticker.

Alistair Williams comedian nails it, thank god for good humour! Prime Minister May the negotiator. Not!


Alistair Williams Comedian youtube

This is a classic! ha!







Fundamentals are important, and so is market timing, here at readtheticker.com we believe a combination of Gann Angles, ...

more from Chart School

Digital Currencies

Cryptocurrencies are finally going mainstream - the battle is on to bring them under global control

 

Cryptocurrencies are finally going mainstream – the battle is on to bring them under global control

The high seas are getting lower. dianemeise

Courtesy of Iwa Salami, University of East London

The 21st-century revolutionaries who have dominated cryptocurrencies are having to move over. Mainstream financial institutions are adopting these assets and the blockchain technology that enables them, in what ...



more from Bitcoin

Biotech

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

Reminder: We are available to chat with Members, comments are found below each post.

 

DNA as you've never seen it before, thanks to a new nanotechnology imaging method

A map of DNA with the double helix colored blue, the landmarks in green, and the start points for copying the molecule in red. David Gilbert/Kyle Klein, CC BY-ND

Courtesy of David M. Gilbert, Florida State University

...



more from Biotech

ValueWalk

More Examples Of "Typical Tesla "wise-guy scamminess"

By Jacob Wolinsky. Originally published at ValueWalk.

Stanphyl Capital’s letter to investors for the month of March 2019.

rawpixel / Pixabay

Friends and Fellow Investors:

For March 2019 the fund was up approximately 5.5% net of all fees and expenses. By way of comparison, the S&P 500 was up approximately 1.9% while the Russell 2000 was down approximately 2.1%. Year-to-date 2019 the fund is up approximately 12.8% while the S&P 500 is up approximately 13.6% and the ...



more from ValueWalk

Members' Corner

Despacito - How to Make Money the Old-Fashioned Way - SLOWLY!

Are you ready to retire?  

For most people, the purpose of investing is to build up enough wealth to allow you to retire.  In general, that's usually enough money to reliably generate a year's worth of your average income, each year into your retirement so that that, plus you Social Security, should be enough to pay your bills without having to draw down on your principle.

Unfortunately, as the last decade has shown us, we can't count on bonds to pay us more than 3% and the average return from the stock market over the past 20 years has been erratic - to say the least - with 4 negative years (2000, 2001, 2002 and 2008) and 14 positives, though mostly in the 10% range on the positives.  A string of losses like we had from 2000-02 could easily wipe out a decades worth of gains.

Still, the stock market has been better over the last 10 (7%) an...



more from Our Members

Mapping The Market

It's Not Capitalism, it's Crony Capitalism

A good start from :

It's Not Capitalism, it's Crony Capitalism

Excerpt:

The threat to America is this: we have abandoned our core philosophy. Our first principle of this nation as a meritocracy, a free-market economy, where competition drives economic decision-making. In its place, we have allowed a malignancy to fester, a virulent pus-filled bastardized form of economics so corrosive in nature, so dangerously pestilent, that it presents an extinction-level threat to America – both the actual nation and the “idea” of America.

This all-encompassing mutant corruption saps men’s souls, crushes opportunities, and destroys economic mobility. Its a Smash & Grab system of ill-gotten re...



more from M.T.M.

OpTrader

Swing trading portfolio - week of September 11th, 2017

Reminder: OpTrader is available to chat with Members, comments are found below each post.

 

This post is for all our live virtual trade ideas and daily comments. Please click on "comments" below to follow our live discussion. All of our current  trades are listed in the spreadsheet below, with entry price (1/2 in and All in), and exit prices (1/3 out, 2/3 out, and All out).

We also indicate our stop, which is most of the time the "5 day moving average". All trades, unless indicated, are front-month ATM options. 

Please feel free to participate in the discussion and ask any questions you might have about this virtual portfolio, by clicking on the "comments" link right below.

To learn more about the swing trading virtual portfolio (strategy, performance, FAQ, etc.), please click here ...



more from OpTrader

Promotions

Free eBook - "My Top Strategies for 2017"

 

 

Here's a free ebook for you to check out! 

Phil has a chapter in a newly-released eBook that we think you’ll enjoy.

In My Top Strategies for 2017, Phil's chapter is Secret Santa’s Inflation Hedges for 2017.

This chapter isn’t about risk or leverage. Phil present a few smart, practical ideas you can use as a hedge against inflation as well as hedging strategies designed to assist you in staying ahead of the markets.

Some other great content in this free eBook includes:

 

·       How 2017 Will Affect Oil, the US Dollar and the European Union

...

more from Promotions





About Phil:

Philip R. Davis is a founder Phil's Stock World, a stock and options trading site that teaches the art of options trading to newcomers and devises advanced strategies for expert traders...

Learn more About Phil >>


As Seen On:




About Ilene:

Ilene is editor and affiliate program coordinator for PSW. She manages the site market shadows, archives, more. Contact Ilene to learn about our affiliate and content sharing programs.

Market Shadows >>