Black Monday

[GTM 3442]

I'm inclined to wonder how much market activity is being conducted by various bots, algorithms, and whatnot, all running outside their design parameters.

[blobbles]

I'm inclined to wonder how much market activity is being conducted by various bots, algorithms, and whatnot, all running outside their design parameters.

I agree GTM. If 80% of the market are bots and they have been built/redesigned in the last 10 years, it's entirely possible they haven't been designed for a bear market. The ultimate recency bias...

[Cyclical]

ASX not fooled, down 1.4%

The opposite of what happened yesterday, for both markets.

[Cyclical]

Sucker rally? Seems ridiculous when the effects on the economy haven't even started yet... unless this is the final sign that we absolutely have a 2 stream economy, one that is simply pumped by printing (QE infinity) and one that people actually live in, with a bit of leakage from one to the other through housing. If we have wall street get back into a bull market while normal businesses and economies are falling over on main street, it certainly will show a complete disconnect between the two. Would mean a companies ability to balance it's books and be profitable don't matter anymore, the only thing that matters is how much printed money they are getting. At that point the stock market becomes a game of who has the best lobbyists, who has the cosiest relationship with the Trump administration/Federal Reserve and who can threaten the government the most by claiming poverty.

Last report I read said at least 16% of American companies are zombie companies (which should be cleaned out in a recession). If that doesn't happen, there goes another hit to long term productivity.

Yep, markets, and therefore companies, aren't allowed to fail anymore. Especially when Trump is in charge on election year.

[bull....]

we hit the target around 2750 on sp500 i mentioned as top of my reaction rally point previously so lets see if we start next leg down soon.

When NZ govt going to let NZ people access there kiwisaver for emergency funds ? australia is doing it. Its a no brainer as gives people money to see them thru.

[BlackPeter]

we hit the target around 2750 on sp500 i mentioned as top of my reaction rally point previously so lets see if we start next leg down soon.

When NZ govt going to let NZ people access there kiwisaver for emergency funds ? australia is doing it. Its a no brainer as gives people money to see them thru.

Well, yes - it would be as well an amazing method to make the next down leg of the stock markets worse. Just imagine everybody now selling their portfolios for fear (or to access extra money). I can see why a trader would want that. More money in the end for the few.

[bull....]

Well, yes - it would be as well an amazing method to make the next down leg of the stock markets worse. Just imagine everybody now selling their portfolios for fear (or to access extra money). I can see why a trader would want that. More money in the end for the few.

BP only worried about his / her money . what about the people who need money now to live and pay there bills.

More than 360,000 Australians apply for early release of superannuation under coronavirus assistance scheme

https://www.abc.net.au/news/2020-04-...vid19/12125328

[cyclist]

I'm with BP on this one. An appalling way of transferring more wealth from unsophisticated investors to the rich. Targeted assistance is a much better idea.

[BlackPeter]

BP only worried about his / her money . what about the people who need money now to live and pay there bills.

More than 360,000 Australians apply for early release of superannuation under coronavirus assistance scheme

https://www.abc.net.au/news/2020-04-...vid19/12125328

Not worried about my money ... I do have a well diversified and well hedged portfolio - doesn't really make a significant difference to me whether the stock prices drop another 50% or rise from here.

I am however worried about the masses who might sell their assets when they are distressed and basically transferring their nest egg for a song to speculators and finance sharks.

[clip]

we hit the target around 2750 on sp500 i mentioned as top of my reaction rally point previously so lets see if we start next leg down soon.

Indeed will be interesting to see, looks like DOW/NASDAQ/S&P have made a higher low and higher high, I had a quick look back at 2008 charts and didn't see that happening I don't think, looking at weeklies? Then again we don't have much data to work with in the current environment so I suspect I am looking through rose-tinted glasses.