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Is market crash coming?

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  • Is market crash coming?

    China sneezed and we all caught a fucking cold.

    Nearly $10 trillion was erased from the global stock since June 3.

    Today Australia had the worst day in six years.
    FTSE 100 lost nearly $80B of value in matter of hours if it stays the same.
    Chinese stocks tumbled 8.5%, biggest fall since 2007.

    Investors are losing faith in central banks' 2009 road to recovery plan. Even though this plan drove many stocks to record highs, but underlying problems never been solved.

    What's next? Should we expect recovery tomorrow? Is the market crash coming? Is it time for all the bubbles to pop?

    Wall Street will open in couple hours, should be a fun day!

  • #2
    It is times like this technical analysis is extremely useful.

    Despite the talking heads daily spew, markets are not rational and the central banks were never in control.

    CONFIDENCE is what matters.

    It is becoming apparent confidence is being lost in the Central Banks because, as you mentioned, the underlying problems have never been solved. You can't solve a debt problem with more debt.

    We are entering dangerous times but the bubble is not in stocks, it is in bonds. This last flight to 'safety' should mark the top in bonds. People have become complacent thinking the market goes up steadily. Politicians and central bankers have become ignorant thinking they can control the world and economy through laws or policies with no repercussions for their decisions and actions.

    Martin Armstrong is a great place to see the world through a different perspective.

    Peter Brandt is a great place to see the world through classical chart patterns:

    ZeroHedge, for all the insults it receives about tinfoil hats and conspiracy theories, is actually showing that most of the 'nonsense' they have been putting out for 6 years, to much ridicule, is coming true (disclosure: they are super sensational though).

    The hysteria of late is a great example of how detached from reality market participants have become. The markets are down 10% since the top in MAY (DOW and S&P, NASDAQ hit new highs in July). That is not abnormal historically. Corrections are healthy. The market behaviour of the last 6 years, 4 years in particular, is what should be of concern.

    Bottom line is, when it comes to your own money, you need to make your own choices...and live with them.


    • #3
      They see red. #bloodbath


      • #4
        Dow Jones dropped 1k points at opening bell, which I believe is the largest drop ever in Dow Jones history. They did recover pretty nicely though.


        • #5
          rocwell wrote: View Post
          Dow Jones dropped 1k points at opening bell, which I believe is the largest drop ever in Dow Jones history. They did recover pretty nicely though.
          Massive debts around the world, artificially low interest that was supposed to create inflation but is still resulting in deflation, governments seizing more power over industry and sucking more money out of people's pockets and blaming corporations for it all.

          But the left is right, who cares about massive debts and defaulting social programs, just borrow more, spend more, seize more! Venezuela for everyone!

          Hey, remember the time Trudeau said of all the governments in the world, he admired China's the most for their economic system? Yeah good times,,,,

          Since 2007 China went from $7trillion in Federal debt to $28Trillion in debt. No biggie, just spend baby spend!
          Sunny ways my friends, sunny ways
          Because its 2015


          • #6
            The world has a 3 headed monster:

            1) central banks
            2) corporate buy backs
            3) High frequency trading

            All of those things conspired to grind higher on little to no volume for last 4 years.

            Now we are witnessing what happens when people no longer wish to hold because they lack confidence.

            So many are going to get burned because the flight to 'quality' or 'safety' is government debt but that is where the real bubble is. Eventually US stocks will be seen as the safe place.

            Despite all the record highs in markets, it was not participated in by retail and it lacked the euphoria of typical market peaks.

            I believe you see a correction completed within next few months, the bond market implodes, and you see capital flow into private sector (read: stocks, specifically US stocks). FED will raise rates and markets will rise, as will USD. By the time retail (read: mom and pops) joins in, rally well underway and they will only add to it.

            But this is all my own speculation. Key to investing or trading is to find something that works for you and limit risk.


            • #7
              Rocwell. Trends Journal's Gerald Celente is someone you might want to check out on YouTube for some free analysis. Trends Journal is subscription based but Gerald does a lot of interviews, both TV and radio. He tends to be spot on and offers up a lot in those interviews.


              • #8

                Good read on HFT yesterday.

                It is incredible that a company can have just one trading day loss in 6 years.

                Nothing rigged there.


                • #9
                  Economists to read are Bill Mitchell, Yanis Verefaukis, and L. Randal Wray.


                  • #10
                    Quirk wrote: View Post
                    Economists to read are Bill Mitchell, Yanis Verefaukis, and L. Randal Wray.
                    Don't neglect Tom Wilson and Bill Keane