Summarizing The "Black Monday" Carnage So Far

It's officially Black Monday, if only in China for now.

Black Monday! #ChinaStocks join global panic selloff, dive 8.5%, worst since Asian financial crisis at midday pic.twitter.com/nLHoFf34bV

— China Xinhua News (@XHNews) August 24, 2015

We warned on Friday, after last week's China rout, that the market is getting ahead of itself with its expectation of a RRR-cut by China as large as 100 bps. "The risk is that there isn't one." We were spot on, because not only was there no RRR cut, but Chinese stocks plunged, with the composite tumbling as much a 9% at one point, the most since 1996 when it dropped 9.4% in a single session. The session, as profile overnight was brutal, with about 2000 stocks trading by the -10% limit down, and other markets not doing any better: CSI 300 -8.8%, ChiNext -8.1%, Shenzhen Composite -7.7%. This was the biggest Chinese rout since 2007.

The worst news is that the 3,500 level in the SHCOMP which until recently had been seen as a "hard barrier" for the PBOC, has now been breached, and not only is the Shanghai Composite red for the year after being up 60% a little over 2 months earlier (don't worry though: just like on Yahoo Finance Twitter everyone took profits at the highs), but nobody knows why the Politburo let stocks tumble and worst of all, how much further will it allow stocks to drop.

Elsewhere in Asia, equity markets traded with significant losses on what is being referred to as 'black Monday' amid increased growth concerns coupled with commodities falling to fresh 6 year lows and US stocks in correction, sparked a further sell-off in the region . The ASX 200 (-4.1%) declined by the most in 4 years, Nikkei 225 (-4.6%) and Hang Seng (-5.2%) also saw considerable losses with energy dragging the index lower. 10yr JGBs saw relatively muted trade and are up by 3 ticks.

Risk averse sentiment has dominated the price action in both Asia and Europe as the week kicks off, with Chinese equities again under heavy selling pressure as market participants were left disappointed by the lack of action by the PBOC to ease monetary conditions further. As a result, equity indices in Europe opened sharply lower (Euro Stoxx: -2.3%) and in spite of coming off the worst levels of the session, remain broadly lower, with materials and energy sectors underperforming amid the continued slump in commodity prices. The Dax was well below 10,000 at last check.

In FX markets today, JPY benefited from risk averse and interest rate differential flows as market participants scale back Fed rate hike expectations, which in turn saw the pair fall below the 200DMA line and hit its lowest levels since mid-July.

The short-sterling curve has been seen flatter in trade so far in European amid the ongoing risk averse sentiment, which as pointed out by David Smith of The Times is set to put interest rate rise on hold by both the Fed and the BoE. Consequently, EUR outperformed GBP, which in turn saw EUR/USD hit 1.1500 level for the first time since February 2015, while EUR/GBP gradually edged towards the 200DMA line as USD continued its recent trend lower (USD-Index: -0.7%).

Fixed income products reside in positive territory, bolstered by the global risk off sentiment as T-Notes head into the North American open in positive territory, albeit off their best levels. Elsewhere, Eurozone 5y5y inflation forward rate fell to its lowest level in 6 months.

In the US, the 10-year Treasury yields traded below 2 percent for the first time since April, precisely what Goldman said in its Top Trade #2 for 2015 would not happen.

The rout in energy and base metals markets continued today, seeing WTI fall to its lowest level since February 2009 and Brent crude to its lowest level since March 2009 below the USD 40/bbl and USD 45/bbl respectively as Iran continues their recent rhetoric regarding an increase in supply. Elsewhere in base metals, iron ore and steel hit limit down overnight and traded around 9 year lows, with nickel reaching its lowest level for 6 years. Gold has also seen soft price action today, reversing some of last week's gains. Some more key commodity headlines courtesy of RanSquawk

• Iran oil minister has stated that the country will increase oil output at any cost and oil prices would benefit from an emergency OPEC meeting, according to Iranian press . (Shana/BBG/RTRS)
• Oil production in Libya seen at between 350-400KBPD according to the Eastern State oil firm head . (RTRS)
• Kuwait's Shuaiba oil refinery, which has a capacity of 200k, reopened on Saturday according to the head of Kuwait National Petroleum Company after the refinery saw a fire last Monday. (RTRS)
• BP's Whiting Refinery, which has a capacity of 405k bpd, continues to see a fall in operational levels as has been the c\se sin ce August 8th (Genscape)
• CFTC data shows that hedge funds and money managers switched to a net long position in COMEX gold contracts in the week to Aug 18th, after four consecutive weeks of net short positions . (RTRS)
• World Gold Council forecasts strong demand from India and China in H2, citing stock market weakness and devalued CNY for increased demand in China and festivals boosting demand in India. (BBG)
• Bankers suggest that Indian gold lenders are unwilling to increase interest rates on gold deposits more than 1 %, which could scupper government strategy to reduce imports. (RTRS)
• The world's biggest gold refiner Valcambi states Indian gold demand could reach 950 tons this year amid low prices during peak festival season. (RTRS)
• Rio Tinto's China managing director announces Co. are to increase shipments of iron ore to China by 20% this year for a total of 240m1n ton while Fortescue CFO state they have great confidence in China's long term growth. (BBG/RTRS)

Going forward, market participants will get to digest the release of the latest Chicago Fed Nat Activity Index, as well as look out for comments by Fed's Lockhart. Be very careful for unexpected comments by Bullard because it was just around a -10% correction that the St. Louis Fed president hinted at QE4 last October.

Biggest selected cross-asset moves via Bloomberg

• Equities: Shanghai Composite (-8.5%), MSCI Asia Pacific (-4.8%)
• Bonds: Greek 10Yr yield (+2.4%), Portuguese 10Yr yield (+2%)
• Commodities: LME 3m Nickel (-5.7%), WTI Futures (-3.8%)
• FX: Yen spot (+1.6%), Dollar Index (-1%)
• Chicago Fed activity index due later

Markets

• 19 out of 19 Stoxx 600 sectors fall; chemicals is the most active -2.8% on 233% 30-day avg. vol., followed by construction -3.1% on 229% avg. vol.; travel & leisure is the least active sector -3.4% on 162% avg. vol.
• FTSE 100 down -2.8%, CAC 40 down -2.9%, DAX down -2.9%, IBEX 35 down -2.8%, FTSE MIB down -3%, S&P 500 futures down -2.4%, Euro Stoxx 50 down -2.9%
• Bonds: German 10yr yield up 1bps to 0.57%, Greek 10yr yield up 23bps to 9.98%, Portugal 10yr yield up 5bps to 2.68%, Italian 10yr yield up 3bps to 1.89%,
• Credit: iTraxx Main up 4 bps to 77.49, iTraxx Crossover up 18.1 bps to 364.81
• FX: Euro spot up 0.93% to 1.1492, Dollar index down -0.96% to 94.093,
• Commodities: Brent crude down 3.7% to $43.78/bbl, Gold down 0.4% to $1156.25/oz, Copper down -.3% to $4936.5/MT, S&P GSCI down 2.4%

Equities

• Top Stoxx 600 Outperformers: Abengoa SA +3.6%, Modern Times +2.3%, RSA Insurance +0.3%, AA PLC -0.1%, Pirelli -0.2%, MAN SE -0.2%, Sulzer -0.3%, Kabel Deutschland -0.4%
• Top Stoxx 600 Underperformers: National Bank of Greece SA -10.2%, Seadrill -7.2%, Tullow Oil -7%, BB Biotech AG -7%, ArcelorMittal -6.2%, Glencore -6.1%, Henderson -6.1%, Genmab A/S -5.9%
• About 1% of Stoxx 600 members gain, ~99% decline
• Asian stocks fall with the Kospi outperforming and the Shanghai Composite underperforming
• Nikkei 225 -4.6%, Hang Seng -5.2%, Kospi -2.5%, Shanghai Composite -8.5%, ASX -4.1%, Sensex -5.9%
• 0 out of 10 sectors rise with staples and utilities outperforming and energy and financials underperforming

Bulletin Headline Summary from Bloomberg and RanSquawk

• Asia equity markets traded with significant losses on what is being referred to as 'black Monday' amid increased growth concerns, with European equities following suit
• The rout in energy and base metals markets continued today, seeing WTI fall to its lowest level since February 2009 and Brent crude to its lowest level since March 2009 below the USD 40/bbl and USD 45/bbl respectively
• Going forward, market participants will get to digest the release of the latest Chicago Fed Nat Activity Index, as well as look out for comments by Fed's Lockhart
• Treasuries gain, 10Y breaks below below 2% level as China’s stocks plunged the most since 2007, commodities and EM currencies routed amid concern slowdown in world’s second-largest economy is deepening.
• Global stocks have lost $5t since China devalued the yuan on Aug. 11, with the carnage raising doubt about the ability of the global economy to withstand a eventual liftoff in U.S. interest rates this year
• The volatility “will certainly keep the Fed on hold for the rest of 2015. Look for 10yrs to break 2% successful this week and possibly head back towards 1.86%,” ED&F Man head of rates ED&F Man Tom DiGaloma writes in note
• PBOC, with ~$3.9t of bank deposits locked up as reserves and benchmark 1Y interest rate at 4.85%, may be the only central bank around the world with the firepower to arrest the rout
• However, traders say the slowing economy has left the state fighting a losing battle; the government is “trying to defy market forces at overvalued levels,” says CMB Intl Securities strategist Daniel So
• RBI Governor Raghuram Rajan said Monday central banks should avoid giving “booster shots” to stock markets; Japan’s Abe acknowledged that the central bank’s 2% inflation target is getting more difficult to achieve
• Taiwan slapped a ban on short-selling of borrowed stocks at prices lower than the previous day’s close, while South Korea’s finance ministry said it will act “pre- emptively” after the nation’s largest ETF suffered the biggest weekly withdrawal since its inception 15 years ago
• Vice President Joe Biden is gearing up for a packed September schedule in his day job that could showcase him as the politician best poised to carry on Obama’s policies -– or open him up to new lines of attack if he stumbles.
• Sovereign 10Y bond yields mixed. Global stocks and U.S. equity-index futures plunge. Crude oil, copper and gold fall

US Event Calendar

• Chicago Fed Nat Activity Index, July (prior 0.08)
• Fed’s Lockhart speaks in Berkeley, California
• 11:30am: U.S. to sell $24b 3M bills, $24b 6M bills

DB's Jim Reid Completes the overnight recap

This morning’s rout in Asia comes after hopes that more government support in China could be around the corner, although the lack of any state intervention first thing this morning is seemingly exaggerating the pain in markets. As per the WSJ, the PBoC is set to make another move to cut the RRR, possibly as soon as this week in a bid to flood the Chinese banking system with as much as $106bn in liquidity. Meanwhile, a second story doing the rounds is a report that China’s State Council has published a plan allowing for pension funds managed by local governments to invest in the stock markets for the first time. According to Reuters, the report suggests that pension funds will be allowed to invest up to 30% of their net assets in stocks, funds and balanced funds having only previously been able to invest in bank deposits and treasuries.

Elsewhere, echoing similar moves by the Chinese regulators, yesterday Taiwan’s Financial Supervisory Commission made the move to ban traders from short-selling borrowed stocks and depository receipts at lower prices than the previous day’s close in a bid to stabilize the Taiwanese stock market. There’s also news out of South Korea where the Financial Services Commission Chairman has urged authorities to make timely actions when deemed necessary in markets and act ‘pre-emptively’ after the nation’s largest ETF saw its biggest weekly withdrawal since inception in 2000 last week.

These reports have clearly done little to help sentiment this morning however and it’s looking like the rout is set to extend into DM markets with S&P 500 futures down some 2.5% already.

Back to markets on Friday. With the S&P 500 tumbling to its lowest level now since October last year, the Dow (-3.12%) saw a similar sharp decline on Friday and as a result officially entered correction territory with a now 10% retreat from the May highs. It was a similar story in Europe also. The Stoxx 600 tumbled 3.26%, while the DAX (-2.95%) and CAC (-3.19%) also moved a steep leg lower. Peripheral bourses were not immune to the moves either, with a 2.98% fall for the IBEX in particular taking it into negative territory (-0.08%) for the year. That’s after the index was up as much as 15% just four months into the year. Credit also had a poor day. In the US CDX IG finished nearly 2bps wider while in Europe we saw Crossover and Main leak 15bps and 3bps wider respectively. All-told that saw the VIX jump 46.5% to 28 on Friday and in turn marking the highest level since December 2011. Amazingly, last week’s 119% surge in the index (albeit from a low base) was the largest in the history with data going back to 1990.

Oil markets once again generated plenty of headlines on Friday as WTI finished down 2.11% on the day at $40.45/bbl and has in fact tumbled another 2% in trading this morning taking it below $40 in the process. Brent (-2.49%) also weakened on Friday while the complex wasn’t helped by the latest Baker Hughes oil rig count which showed an increase in the number of operating rigs last week. Combined with the sell-off on Friday, we’ve seen a fresh wave of selling across equity markets in the Middle-East this weekend and a number of fresh cycle lows reached, particularly in the more Oil-sensitive countries. The Saudi-Arabian equity market tumbled into a bear-market yesterday after plummeting nearly 7%, Dubai saw its biggest one-day loss this year, Egypt fell the most in three years and Israel saw its biggest slide in nearly four years. Saudi Arabia in particular – seen as something of a bellwether for the Gulf – has now tumbled 24% from its April peak and in turn entered its second bear market in less than a year.

Much of the rest of the commodity complex also suffered on Friday with the likes of Aluminum (-1.71%), Copper (-1.25%) and Silver (-1.61%) all sliding. Gold (+0.74%) continues to be one of the few beneficiaries from the selloff in risk while Treasuries also benefited from a decent bid on Friday with the 10y (-3.1bps) yield down for the third consecutive day to 2.037%. Fed Funds contracts continue to slide too with the Dec15 contract down another 1.5bps to 0.275% having been as high as 0.340% earlier in the month.

There was a similar move lower for Bunds too with the 10y down another 1.9bps to 0.562% while the peripherals ended 2-4bps higher. Dataflow largely played second fiddle to the sharp moves on Friday. In the US the flash August manufacturing PMI declined 0.9pts from July to 52.9 after expectations for no change. There was better news in Europe however where we saw the Euro area flash composite PMI rise 0.2pts to 54.1 (vs. 53.9 expected), led higher by the services reading in particular (0.3pts to 54.3; 54.0 expected) while the manufacturing print stayed unchanged at 52.4 (vs. 52.2 expected). Regionally, Germany led the gains with the composite rising 0.3pts to 54.0 (vs. 53.6 expected) after a surge higher in the manufacturing print (+1.4pts to 53.2; 51.6 expected) which was more than enough to offset a slightly weaker services print (-0.2pts to 53.6; 53.7 expected). Meanwhile in France we saw the composite drop slightly to 51.3, from 51.5 last month.

Before we turn over to the week ahead, the St Louis Fed President Bullard reiterated his stance on Friday that the outlook for US growth remains relatively good and that the expansion in the second half is likely to be ‘above trend’. Bullard also noted ‘there has been a lot of cumulative progress in labour markets and I think you can look through the decline in oil’ before saying that he is more sanguine about the outlook for global growth relative to markets. Bullard is a non-voter this year but as we noted earlier, with markets seemingly in freefall mode at the moment there will be plenty of attention on the Fedpseak this week for us to gauge how the Fed is viewing the recent volatility.

Turning over to this week’s calendar now. It’s a very quiet start to the week today with no data due out this morning in Europe and just the Chicago Fed’s national activity index this afternoon. Tomorrow is set to be busier though and in particular there will be much focus on the final reading for Q2 GDP in Germany along with the IFO survey and trade data. In the US we get more housing data with the S&P/Case Shiller house price index, July new home sales and FHFA house price index. The flash composite and services PMI’s are also due along with the consumer confidence reading and Richmond Fed manufacturing activity index. We start in Asia on Wednesday where we get Japan PPI and China consumer sentiment data. There’s nothing of note in Europe on Wednesday while in the US there’ll be much focus on the durable and capital goods orders data for July. In Europe on Thursday we’ll get UK house price data along with various confidence indicators out of France. The afternoon session is particularly data heavy in the US with the second reading of Q2 GDP and Core PCE likely to be front and centre, while pending home sales and the Kansas City Fed manufacturing activity index are also due. Closing out the Asia session on Friday will be Japan CPI and retail sales, along with China industrial profits and conference board leading indicators. It’ll be a particularly busy end to the week in Europe too where we get French PPI, German CPI, UK Q2 GDP and Euro area confidence indicators. It’s also a busy end in the US where we get the PCE core and deflator readings for July, personal spending and income prints and finally the University of Michigan consumer sentiment print for August.

* * *

To summarize:

Comments

[Dead Canary]

I've been watching the Asian and Euro-peon markets with great interest and this is what the bobble heads are saying:

( ahem )

The market started off with a "pause" (a pause). Descended into a "funk" (just a funk, nothing more) but now has cascaded into a full blown "tumble".

Translation please?

[Mr Poopra]

The muppets are fucked.

[Dead Canary]

Mucho thanko.

[Haus-Targaryen]

I'll "lol" if American equities markets rally. 

[Supernova Born]

401(k) galley slaves, chained to their oars, are going to think that 10% penalty was a pittance when they are restocking shelves in the middle of the night at Target in 10 years.

[Richard Chesler]

Jump you fuckers!

[negative rates]

They jumped a long time ago, SPLAT, YOU FUCKERS!

[VinceFostersGhost]

Gold.....seriously bitchez!

Yeah I know they're jacking it.....do it anyway.

[Bernoulli]

Bring out the BULLARD!

www.denk-bubbles.com/james

[Supernova Born]

In a cart, wearing a dunce cap on his way to a pyre of FRNs.

[THE 4th Quadrant]

Hey you guys, I'm scared. Is this the `BIG` one?

It's scary.

[VinceFostersGhost]

It's scary.

Relax.....tomorrow will come.

It might suck....but it will come.

I just told you what to do....so get on it.

[dontgoforit]

Blood baths?  Panic selling?  That's putting it mildly.  Get out now.  Cut your losses.  This bitch is going down hard.

[Divine Wind]

Was it "sell the rumor" and "buy the news"?

or

"Feed the news" and "starve the rumor"?

or

"Starve a cold" and "buy the news"?

Screw it........ I'll take yellow phyz.

[eforce]

Going by 2001 and 2008, there will be a dead cat bounce, don't expect free flight until turn of the year.

[Kickaha]

Unless your pockets are filled to overflowing with paper claims on other people's assets, you'll be fine.  The S & P can go to zero, and when you wake up, only the paper claims will be gone.  All of the land, farms, homes, buildings, factories, machinery, equipment etc. will still be there. The world got financialized over the past several decades, but the financial paper is just shadows dancing on the wall of the cave.  You might even be able to turn around and see things as they really are for the first time.

[Mr Poopra]

"Your eyes are full of hate, 41.  That's good."

[The Chief]

Row well, and live.

[Supernova Born]

Recall 41 only gained his freedom when the galley was sunk.

[clade7]

I watched two retirement planning seminars last night...Naked and Afraid/Fear the Walking Dead...

Then I flipped over to Bloomberg Asia market coverage for some light comedy..slept like a baby!

[Mr Poopra]

Have an upvote, sir.

[new game]

the exits are blocked by trampled bodies.

nowhere to go, i'm trapped in a 401 nightmare.

i can hear the financial planners, the long haul, just a blip.

healthy correction...

did some say a tad bit too much debt out there impairing assests?

oh where oh where is the collateral? opps deflations put the whole fucking mess in quandry.

now what? 

ha, qe 4? rate hike? writedowns? losses-yup. lol.

[Late onset ADHD]

now THAT ^^^^ was freaking hilarious...

I know because i did the same thing...

I miss captain kangaroo with my oatmeal, however...

[jakesdad]

with what will they be stocking those shelves & to whom will they be selling it?

[Supernova Born]

Eloi flesh to Morlocks.

OK, I admit I was optimistic in my first post with the graveyard shift Target job, but I didn't want to go overboard.

[Pumpkin]

Yeah, but you're not taking into consideration that there loss is tax free. :D

[TongueStun]

JUST BUY THE FUCKING DIP PEOPLE

Sell all of your PMs, and buy BITCOIN XT and USTs for insurance!!!!

[Headbanger]

JUST STFU YOU MOOK

[negative rates]

When ur in the middle of a gvt default, how can you STFU?

[Sisyphus]

So when does the market break and they start declaring self-help.

Forget China, India's Sensex has the biggest fall evah

http://timesofindia.indiatimes.com/business/india-business/Biggest-ever-...

http://finance.yahoo.com/news/chinas-stock-market-suffers-biggest-075439...
"It feels like the end of the world," said Pan Chong, a social media specialist. He said he invested 50,000 yuan ($7,900) in April, made 40 percent and then saw the market wipe out those gains.

"The so-called correction will finally become a long-term bear market," said Pan, 25. "So I'm considering selling all my shares as soon as possible."

[Late onset ADHD]

is it difficult typing with a shoe in your mouth?...

(yeah I changed the word to "shoe" - it's a family show right?)...

[forgotten in th...]

Just STFR!

[forgotten in th...]

Just STFR!

[JungleCat]

No speako dago, por favor.

[SheepRevolution]

How do you say Black Monday bitchezzzzzz!!!! in Chinese?

[debtor of last ...]

Barack Monday.

[Headbanger]

FUCKASHIT!

[VinceFostersGhost]

Don't forget to pick up your participation trophy on the way out.

Remember our motto..........YES WE CAN!!!

[khnum]

no thats in a few hours time

[Silenus]

???????
From Google translator
*I guess Chinese characters won't publish

[SillySalesmanQu...]

They were margin called and suspended indefinitely in limit down status.

[ConfederateH]

I wish you would keep your chosenite icon propaganda to yourself in your filth folder

[Late onset ADHD]

hey... I wish you would keep your veiled, pool-cue english, mental-aphasia ruminations in your horse's ass while you're searching for your missing chromosome on e-bay...

give your mother/sister a kiss for me...

[Son of Captain Nemo]

I wish you would keep your chosenite icon propaganda to yourself in your filth folder

How bad could it be when you have an advertisement in the middle of this page with a woman wearing a very badly made white and red "tie-dye"?

[bunnyswanson]

I see this everytime I open the page.  This looks like a medical emergency (hemorrage) rather than a cyclical shedding of the lining of the uterus.  I wish they'd remove it; I am embarrassed for whoever that lady is.  She does wear her dress well and it is unfair to her. 

[DirkDiggler11]

Hey, that's my sister that is making $1,700 a month without leaving the house in her spare time. Send her back home when you are done OK ? Oh, and don't forget to tip the lady !

[BarkingCat]

I only gave her the tip.
She was screaming too much to get the rest.
..but I guess my horse's dick was a bit much for her asshole.

[Bernoulli]

Why doesn't everybody just relax? We are doing JUST FINE! The markets are OVERSHOOTING! No reason to PANIC!!

denk-bubbles.com/just-fine

[netpounder]

The muppet masters are fucked.  Most of retail has been out since the last crash.  Chinese muppets are the ones who are fucked this time.  We need a corporate-buyback-ppt-QEnfinity-HFT-algo-driven-money-on-the-sidelines-pump-infusion.

[Crisismode]

One hot goose tamale, coming right up!

[Bangin7GramRocks]

If the fed doesn't announce or at least whisper about more paper shuffler welfare this week, I'll start to believe this is it. Shit, if the gubmint titty isn't exposed for more .1% suckling, I may just load up on canned goods. We shall see....

[McCormick No. 9]

Yellen quandary:

QE4...Market stabilizes (whew), but only short-term at the expense of even greater inherent structural weakness built in. "Cap'n, I've reverse-fluxed the main drives, but I can't hold 'em much longer!"

Status Quo...Watch and hope the carnage stabilizes at a lower (but not too much lower) level, from which it may be possible to formulate a regrouping strategy. "Cap'n, we've taken a direct photon hit, and the pressure hull is leakin'! But I think I can hold 'er  together long enough to reach Planet Z-23 in the outer Keppler Ring!"

Pull the plug, ie raise rates... "Kirk, it's no good! The hyper drives are cooked, the shields are down, an' we're driftn' without main power! We've got to scuttle 'er Cap'n and make for the escape pods!" 

I'm long escape pods.

[dontgoforit]

The way things are right now, this thing could be down 35% by the end of next week.

[XAU XAG]

"You did not make those Markets"

"You did not build those Markets"

DOT GOV

[Uncle Sugar]

Hugh Hendry must feel like shit today.  

[ThroxxOfVron]

Hugh always feels like shit.

[BaghdadBob]

Calm down Tyler's. Prolly just a fat finger suffering from a weekend hangover. Dow at 19000 by Friday close. Now, where's me weed.....?

[Crisismode]

Now, if you had said 14,000 I would have believed you.

[pine_marten]

The way things are going you may be able to pick up a lid for 12 bucks again.

[negative rates]

Senseamia street.

[detached.amusement]

erm, did you just call me krammit

[sgorem]

china has just issued an "all okay",(voluntary my ass), for it's main state pension fund to invest up to 30% of it's money into equities. coming to a town near you?

[conscious being]

Interesting. They do have break pads. Long Sun Tzu. How do you win a currency war? What constitutes winning?

[sgorem]

.

[overmedicatedun...]

BTFFD...here is you buy signal..I just picked up a position in TZA..you know I am getting fucked, so buy buy buy..thank me later.

[I AM SULLY]

"This will all be solved by applying massive amounts of vasoline to rebar and inserting into the world economy." - Ben Bernanke

[sgorem]

Black Mondays Matter !!!!!

[netpounder]

"SO BULLSHIT IT'S FUNNY."

[tc06rtw]

 
  Y-Y-You mean, they’ve been LYING
          to us,  ALL THE TIME ??!!
   

[The Once-ler]

 …  but it was for our own good.

[negative rates]

Prolly meant for keeps.

[Tinky]

Marlon Brando, as Godfather Carmine, speaking to stockbroker on the phone (in "The Freshman"):

"I don't like it when my Kodak stock goes down. Make it go back up."

[Took Red Pill]

I guess his stock broker is swimming with the fishes;

http://petapixel.com/assets/uploads/2013/08/kodakchart3.jpg

[Tinky]

Instead of guessing, perhaps you should do three seconds of research next time. The film was made in 1990, rendering your chart both irrelevant and misleading.

[Took Red Pill]

Yes, I realize that. I used to work for Kodak. I was an attempt at humor and to show how such a huge company has tanked. It was a movie and the characters weren't real either.

[Adahy]

Fresh fruit from my trees to snack on:  Check
Tasty beverage:  Check
Sack of 'mind candy' and something to smoke it out of:  Check
Comfortable spot to watch and hit the refresh button from:  Check

Van Halen's "Jump" playing in the background:  Check

I think I'm ready.

[Mr Poopra]

Save me a seat brother.  This is gonna be goooood.

[ThroxxOfVron]

Call me when you've reloaded the candy dispenser and have 'The Cradle Will Rock' cued up.

[McCormick No. 9]

Van Halen? Really? Oh, you mean like this:

https://www.youtube.com/watch?v=NPJtWuZaClc

[bunnyswanson]

Or this:  https://www.youtube.com/watch?v=OOjm4I7LRgY  Jamie's Cryin'

[Son of Captain Nemo]

Sack of 'mind candy' and something to smoke it out of: Check

I'm there!

[lucky and good]

China looks to be in for an extremely bumpy ride as a lot more investors question the risk of holding yuan assets. The  general consensus held by everyone from deposit holders in Hong Kong to high-yield-bond investors in Europe was this would continue. Over the years this has pushed along the misallocation of credit on a grand scale and continued the build-up of bad assets in the banking sector.

An estimate by Goldman Sachs has indicated China might be facing credit losses of as much as $3 trillion as defaults ensue from the expansion of the past four years. Nomura claims $90 billion left the country in July with the pace accelerating since the People's Bank Of China shocked the world by ditching its currency peg to the U.S. dollar. Capital flight for the first three weeks of August may be approaching $100 billion despite the use of harsh anti-terrorism and money-laundering laws to curb illicit flows. More about this shift and its implications in the article below.

http://brucewilds.blogspot.com/2015/08/chinas-massive-capital-outflows.html

[new game]

suprime car loans

18 trillion national debt

10percent no payment 1.2 trillion student debt

negative cash flow SS

medicare deficet

housing echo bubble

no, nadda wage growth

inflation stripping hollowed middle class

petro dolla demise

stock buybacks to enhance fake pps-how is that working-balnce stmnt?

immagrants flooding labor markets

wealth distribution

executive orders

NEED I SAY MOAR...

DOW 10K

NAS 3K

edit

one moar AFORDABLE HEALTHCARE ACT

ONE MOAR, moar

COLLATERAL IMPAIRMENT>margin calling

[VinceFostersGhost]

NEED I SAY MOAR...

Go ahead......just get it all out.

[stant]

Where's MDB to sooth us thru these trying times?

[Mr Poopra]

Desperately trying to get his sell orders through.

[VinceFostersGhost]

Don't get fancy......sell at market......and pray.

Your order should be in now.....it's the only way.

[Bill of Rights]

Rinsing his mouth out with Strawberry Jello...

[Bilderberg Member]

You know when Million Dollar Bonus can't conjure up some dark sarcasm, it's bad

[Not My Real Name]

Liberal had a good one last night. In case you missed it:

"Can we talk about more pressing issues like gay marriage and transgender rights?"

[ThroxxOfVron]

"The market started off with a "pause" (a pause). Descended into a "funk" (just a funk, nothing more) but now has cascaded into a full blown "tumble".

Translation please? "

The market tripped on it's dick, fell down the stairs, landed face down in the street in front of an oncomming 18-wheeler, then..

I looked away.

[nmewn]

Oh man, this is gonna be great...

"And now lets take it to the floor with our very own Bob Pisani...Bob whats it like there over?"

(Camera shows no Pisani...it pans around, down to the floor...finds Pisani under a desk in the fetal position sucking his thumb.) 

[ThroxxOfVron]

Yeah.

It's gonna be adult diaper day over there..

I can't even look.

IF I wanna abuse myself I'll go over to Denniger's and see who he's got on the BBQ.

[booboo]

Denninger is long blackberry and crazy pills.

[ThroxxOfVron]

Been that way for a few years now...

[Sisyphus]

Next the camera catches Cramer furiously fluffing Kevin Henry and screaming "they know nothing..."

The camera pans back to Becky, only to find her in a bathtub... ensconced in Buffet's sweet embrace and massaging its shriveled ...

[ReligiousAtheist1]

+ 1 for that comment

[Bill of Rights]

BTFDippers on Friday are in a world of hurting lol, SPY 180 will be the buy...

[Wahooo]

Looks like the SKF days are here again.

[i_call_you_my_base]

*shivers*

[PTR]

Hey UBS- there's a delivery boy outside with that order of crow you didn't realize you ordered.

[Keltner Channel Surf]

Second-grade textbooks around the globe being furiously updated, Finance chapter:  "markets can actuallly go down"

[khnum]

panic not yet

...not until Cramers buy advice on Deutsche bank

...or Suze Orman appears topless

[surf0766]

Why is Cramer not in jail for his role in helping to talk down the markets in 2008

[Oldwood]

I have a feeling there are going to be  lot of mysterious deaths in the next few days....around the world.

[TongueStun]

There are too many sheeple short to not expect a few shearings

[Dead Canary]

Oh for God's sake people! Just give the banks all your money, then lay down and die. Resistance is FUTILE!

[negative rates]

I suggest they jump from the 14th floor, at least one gets 15 minutes.

[Puncher75]

Bullish

[Able Ape]

Janet, "Where's the goddamn magic wand?".....

[Motorhead]

I think I know where it is, but I can't say here.

[Condor96]

http://albainternazionale.blogspot.it/2015/08/war-fake.html

[zeroaccountability]

(sniff) (sniff)?  Is that Napalm?

[VinceFostersGhost]

Smells like......victory.

[TeethVillage88s]

The Fetid Stench of the Black Cloud burned the nostrils of the Clueless Crowd of peasants. The Black Flames scorched the skin and began burning all their eye brows, hair, clothing, and exposed skin within moments.

Napalm was one of Rockefeller's greatest weapons which caused the Blackest of Agony and Terror.

[Wahooo]

Rope futures are soaring!

[VinceFostersGhost]

We march on the hill and kill the establishment.....both sides.....dare to dream.

[bpzh]

No PBOC action is very curious. If the PPT doesn't step in in the US today, what are we to make of that? What do the central bankers have up their sleeves now?

[surf0766]

China called checkmate for not letting them into the IMF basket. They want the reserve currency and are willing to burn their own market down to get it.

[Dr. Engali]

Is there something going on in the "markets" I should know about?

[negative rates]

Only if you want to bend over, fart, and die.

[gwar5]

'So bullshit hurts'..... Er, I mean 'so bullish it hurts'....

[blown income]

Etrade baby is gonna shit today...

Bout fucking time to put paper wealth people in a reality check..

Told my sister months ago take your money out of your 401k ...I hoped she listened...

I got sheared , sluaghtered in 09 been a strugle ever since...

Crash mother fucker !!!!!!!!!!!

[Oldwood]

Took my licks and got out in 2010. All those gains I missed out on may just be "adjusted" away.

I WILL NEVER INVEST IN THEIR FUCKED UP MARKETS AGAIN

I don't care if it is a losing position financially. I refuse to contribute to this disaster any more than I am forced to.

[thismarketisrigged]

This better fucking be the new norm. This is the first real panic I've seen since 08-09. It's awesome seeing garbage companies like nflx get crushed and fucking amzn,  facefuck etc. Now I am just waiting for some banks to declare they need bailouts and we r good . 

[AlfredNeumann]

Buy the fucking dip.

What?? me Worry?

[TeethVillage88s]

The Blackness was now complete. The Dungeon Construction celebrating the Dark Arts and Black Magic of London was a Grand Feat which the masses of Europe and the Americas could never understand or Escape.

[Zwelgje]

"Someday this war's gonna end"

[Volkodav]

"This War is just starting"   -Kutuzov-

[Getting Old Sucks]

I got a kick out of watching MSM yesterday.  Talking heads on Bloomberg and CBS advising people with 401k's to sit this out and stay the course.  One said, you'll be buying share at lower prices now and the market will rebound in the long run.  I guess they just want to make sure that TPTB have time to get out with a profit and leave the losses for the sheeple.  Buckle up, this is it.

[Oldwood]

Advising the cattle to hold their positions and ignore the blood on the ground. Just keep their head in the feed trough.

[SillySalesmanQu...]

In T-63 minutes and 7 seconds, everyone will simultaneously hit the sell button...

[ThroxxOfVron]

Cost averaging.  Good old cost averaging.

It's gonna keep those desk jockeys in air conditioning forever..

[gatorengineer]

I am very pleasantly surprised that we are not waking up to a 2% up market.  But I will keep the stops on my shorts pretty tight as all the Fed Chair has to say today is the Fed Stands ready with QEx, should it be needed, and you could have a 6% reversal today.....

I would be shocked if the PPT lets this thing get a bunch of down momentum.

[DirkDiggler11]

I have a feeling the Fed is going to let this run for a bit, they have China giving them air cover right now. This is also meeting the goals set to destroy Russia's economy as well, which is the main objective here.

[McCormick No. 9]

I think you're right, but this won't hurt Russia so much, or if it does, it'll be the sort of "This hurts me more than it hurts you" type of punishment.

Yellen will let this play out, at least for a few hours, if not a day or so. She's dovish enough to want to QE, but not before letting some air out of the ballon before puffing it up again. If this thing blows through 15 grand, she'll try to put the brakes on the downhill skid, that's for sure.

[Getting Old Sucks]

I think the PPT has been working all along to keep this charade going.  Like the FED, they're out of ammo.  The FED might as well raise rates now, at least the cash holders might make a few bucks to spend and send a few bucks to the tax collectors who'll suffer with all the capital losses filed.

[McCormick No. 9]

Raising rates now is like putting six bullets in the revolver and then playing Russian Roulette. Yellen knows that raising rates was always a plug-pulling move. Her best case scenario was to mumble something about raising rates and see what the market would do. If it quivered to much, talk was all that was going to happen. Raising rates now would be like giving a would-be suicide a push over the railing, or giving a junkie a syringe full of pure heroin.

[DirkDiggler11]

Watching the markets starting at 8 PM last night, Crude Oil seems to be the tail that is wagging the dog, keep a VERY close eye on it today.

[DirkDiggler11]

Seems like a good time for a few more "random" explosions around the globe as well.....

[ZZR600]

Aw, who cares??!! We've got the future King of England's sister in law to keep us distracted!

[Volkodav]

off topic fugly...

[Batman11]

No wonder the Chinese stock market went crazy.

The typical Chinese experience of Capitalism has been working in an Apple factory with suicide nets.

With the stock market boom, they could make money for nothing and get the true joy of Capitalism.

In the West, experience has made no difference, we still boom and bust and can't resist a bubble.

It is China’s first time, no wonder they went crazy.

“Capitalism’s free lunch, I love it” Chinese ex-Apple employee (two months ago).

[Sanity Bear]

Check out them futures... NASDAQ down over 4% premarket, 2.7% for S&P and Dow

[AlfredNeumann]

Buy Shell oil.  bargain of the century . as per Simon Black

[TeethVillage88s]

The Black Hearted Braggard Leered menacingly at the sheep that had appeared upon his door step... The Lambs were frighted from the Black Market Data and Forecast he had placed in adverts and broadcasted from his Black Soul.

[Not Goldman Sachs]

Malfunctioning  Chinese made circuit breakers. I am sure the breakers made in ussa will stop the carnage.

[Monetas]

Black Monday ..... Black Friday after Thanksgiving is supposed to be because the retailers see black for the first time all year .... here, Black is a negative ?  Socialist Jews (and I rarely speak bad about my Joos) .... want to piss on our turkey .... and shit on our Christmas pudding .... along with the whole liberal establishment .... don´t use the term Black Friday .... it is too PC !

[falak pema]

what follows "black monday"?

Happy Tuesday? or "Tuesday's light brigade charge?"

Maybe we should all watch again : 55 days in peking !

to get the feel of things in the pipeline.

[Volkodav]

black week...