Black Monday

[skid]

Chinas playing the intervention game--So that makes their economy ok?--Early days--its volatility ,one way or the other.

Im sure Major would like an apology because the environment is ticktey boo as well

[Bobcat.]

Does anyone else sense that there's just a little too much sigh of relief in the market psyche today? We're kidding ourselves if we think that a Chinese trade surplus and overnight bounce in Equity markets mean that all is now well and rosy. Nobody likes to be afraid and I think we're witnessing a clutching at straws verging on denial.

Let's see how the week ends.

[arc]

Interesting article: The "sudden" devaluation of the Chinese renminbi last month, was not so sudden from their perspective.

#Back in March 2014, we first revealed something quite stunning: a new, seemingly ravenous, and completely unexpected buyer of US Treasurys had emerged in the face of "Belgium" which was buying tens of billions in US paper at a weekly clip, without any explanation.

One year later, this website first confirmed that the identity of the "Belgian" buyer was none other than China, which had been using Belgian-based clearer Euroclear as an offshore venue for its bond purchases, and which starting in March 2015 had commenced dumping the US paper it accumulated so dramatically in 2013 and 2014, in advance of what has become the biggest story of the summer: China's liquidation of its FX reserves, read US Treasury holdings, in defense of its devaluing currency.#

Full article: http://www.zerohedge.com/news/2015-0...surys-revealed

[Daytr]

Tend to agree BC, but we don't know what 'deals' were done if any to support markets at the G20.
That was the first chance they have had since the recent chaos to get together.
Since that markets have bounced.
Could be just a relief rally, holiday rally etc.
Most markets I look at have formed quite distinct resistance areas and flag formations and are right up against resistance.
Good levels to short, unless resistance is broken of course...

Does anyone else sense that there's just a little too much sigh of relief in the market psyche today? We're kidding ourselves if we think that a Chinese trade surplus and overnight bounce in Equity markets mean that all is now well and rosy. Nobody likes to be afraid and I think we're witnessing a clutching at straws verging on denial.

Let's see how the week ends.

[NZSilver]

Can someone explains the article arc posted that a novice like myself could understand? Cheers

[Nasi Goreng]

For some of you that are shorting indexes or individual stocks, where are you putting your stops?

It doesn't look like it's currently much cause for concern but I imagine a 2-3% rally on the Dow tomorrow followed by another up day may make some holding shorts nervous.

I remember the 2008 market being very whipsaw with lots of relief rallies followed by big falls, not saying it is the same now but bear markets tend to behave very violently.

[Daytr]

I've stopped myself out already.
Too much volatility for my liking.
Short oil & Kiwi though, so will sit with those.

[ratkin]

I remember the 2008 market being very whipsaw with lots of relief rallies followed by big falls, not saying it is the same now but bear markets tend to behave very violently.

Who said its a bear market? Might just be a bull, climbing that wall of worry.

[couta1]

Depends which country you are talking about. Canada is in recession - so their's is likely a bear market. Australia is heading towards entering a recession - so theirs is to. US - may escape recession, so might just be a correction. China - full on bubble burst, so a bear. NZ - will be interesting to see, will depend on whether the dairy industry takes the whole country into a recession or not (personally, I dont think it will, but what would I know?).

My comments are always to be interpreted as referring to the ASX as that is where I invest, I'm only here in the NZX threads because I'm bored

Time to get another day job or can I suggest adult pen and ink books which are now taking the world by storm ( Very good for stopping dementia) PS- My wife brought me home one the other day and a nice set of pencils and I reckon I'll have it finished by the time my portfolio gets back to zero.

[ratkin]

Depends which country you are talking about. Canada is in recession - so their's is likely a bear market. Australia is heading towards entering a recession - so theirs is to. US - may escape recession, so might just be a correction. China - full on bubble burst, so a bear. NZ - will be interesting to see, will depend on whether the dairy industry takes the whole country into a recession or not (personally, I dont think it will, but what would I know?).

My comments are always to be interpreted as referring to the ASX as that is where I invest, I'm only here in the NZX threads because I'm bored

The Australian market would have to fall to 4800 for a bear market to occur. So far we have had nothing more than a bull market correction. Bears and recessions are a bit like thee chicken and egg, either can cause the other. However just because a country falls into a recession does not necessarily mean there will be a bear market