Shanghai Composite Tumbles 1.3% On Latest 50 bps Reserve Requirement Ratio Hike By PBoC

Tyler Durden's picture

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trav7777's picture

lemme go out on a limb and say gold gonna get whacked and miners blowtorched...again

Sudden Debt's picture

Well, Q4 earnings of all the big banks will disappoint and push money out of the system into safe havens.

Bank earnings/divs have always held a tight correlation to gold.

People jumped into banks because of the growth forecast and... it's a dud.

So whacked : no

Down: maybe

Up : maybe

Sound logic enough for ya? :)

tmosley's picture

Here's hoping for sub $14 silver (that's my cost average).  I'd love to put my accumulation back into overdrive.  At those prices, I could almost double my stash in a year.

Sudden Debt's picture

This is what happens when the economy is so strong like it is now and based on real growth and not bubbles.

Josephine29's picture

I guess the Chinese are getting more and more concerned by the rises in commodity prices and the way that input prices are rising leading to cost increases for companies.

An example of this is the way that in the UK the input figure for producer or wholesale input prices rose by 12.5% in December. And in a move which may not surprise many this is on a new rebased i.e lower index which notayesmanseconomics explains.

I wrote on the 19th of November and the 14th of December about a change in the way that the ONS calculates these figures......... Official recalculations of inflation figures leading to a fall in reported inflation lead to a reduction in the credibility of the figures. Looking at the previous trends for this my calculations lead me to believe that on the old basis we would be reporting output price inflation of 4.8% this month and input price inflation of 13.3%.


So the situation on the previous basis is even worse and if anything like this is affecting the Chinese no wonder they are responding again.

EconSammie's picture

I agree with this.We are seeing more and more signs of price inflation around the world. It was there at the input stage in the US figures yesterday and it is there too in the UK figures.

The Chinese must be worried......

EconSammie's picture

But of course the US is fine as Ben Bernanke is 100% sure he can deal with inflation!

Sudden Debt's picture

11.7%, i've heard rumors of 12.7% but that's close enough.

MiningJunkie's picture

Just buy the fucking dip you fucking idiot...what is it about this you don't understand? The Banks are funded by the Treasury and the orders are futures any time it looks weak. Benny wants animal spirits? Buy the fucking dip.

(I am kidding, of course, but then again, I went short E/S o/n so damn the torpedoes...)

Ferg .'s picture

Calling a top in US equities has been an extremely difficult ( and expensive ) endeavour for those of us who have attempted shorts but I think today could possibly be the start of the much overdue correction . Futures are looking shaky after the Chinese RRR hike and there is a slew of top tier data due out in less than an hour , including the December retail sales which , if it disappoints  , could be the catalyst for a drop . And remember , we're at bullish sentiment extremes and virtually every technical indicator is calling for a correction .

Sudden Debt's picture

no need to short the top.

I want to see 3 consecutive days of diving and some more bad news before I do so.

Shorting these last 2 years hasn't been that easy. I only made good money on calls.

Never the less, if you can catch the drop you can make a fortune. But when... without losing the money.

Ferg .'s picture

Yeah it's always nice to get confirmation but I think a small initial short at a sensible area isn't a bad idea . Immense satisfaction if you're corrcet and catch the full extent of the drop .

David99's picture

Dow will close -150 points today


Wait & see

SashaBelov's picture

Is it still time to buy rough rice sep11 future or is this bubble already up to burst? It looks more like it's in downtrend since november, quite decoupled from other agriculturals...

Minty's picture

I understand that wringing leverage out of the Chinease market will decrease the demand for stuff.  However, at some point wont strengthening of the rmb lead to purchasing power and increased internal consumption, or is China only capable of export?  At what point does all this reserve ration tightening force the rmb peg to break? 

Just asksin.