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Behold China's 2PM Ramp Capital
For the last few years, US equity traders have become conditioned to expect the miraculous arrival of some heavy-handed levitation in stock markets as 330pmET rolls by. This became ubiquitous enough to inspire a Twitter account. Well, it appears the Chinese have learnt a thing or two from the American manipulators... behold China's 2pm Ramp Capital at work.
Afternoons in the Chinese stock market have turned into a waiting game for the state-backed funds to arrive.
Over each of the past four days, China’s SSE 50 Index of large-capitalization companies has rebounded by an average 6.4 percent in late trading from session lows.
The gauge surged 15 percent over the four-day period, its biggest rally since 2008 and twice the 8.1 percent gain by the Shanghai Composite Index. The SSE 50 climbed 0.9 percent at the close on Tuesday, erasing an earlier loss of 4.8 percent.
The rallies are driven by government-backed funds buying shares to stabilize the market before a World War II victory parade on Thursday, according to IG Asia Pte.
Sadly - for the Chinese manipulators - unlike in 'Murica, where any momentum is good momentum, the 'burned' farmers and grandmas are selling into government buying... not buying alongside...
“When you see a straight line buying pattern in the last 45 minutes, that’s usually the national team supporting the market,” said Michelle Leung, chief executive officer of Xingtai Capital Management Ltd. in Hong Kong.
"When you track market opens or you track outstanding margin balance, we could see the bulk of retail investors selling."
And as one analyst warned...
"I don’t expect this intervention to continue in such a successive fashion longer out," Aw said. "I will still sit tight and await better valuations.”
Welcome to the new normal, China.
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Communists. But would a truly communist country even have a stock market?
Flummoxed am I.
what would flummox you more?
that retail in the west would buy with the ramp? or that retail in the east would sell into the ramp?
I can't fucking believe that after 20 years of the Internet, I'd have to include a "/sarc" tag at the end of a comment.
Fucking fuck.
By September 25th, what difference will it make???
Well after getting their asses handed to them, the probably won't have one for much longer. They will outlaw it, with the US to follow shortly there after.
Thou shalt not go against your gubmint.
Gee, that SSE50 chart looks a lot like the Dow from 2010-2014.
ccp is trying trying to keep the Fed on track for a rate increase later this month. then it will allow all hell to break loose just to screw with us.
Aw what does he know?
Not much different from the Fed's attack on gold and silver at 3 am for countless years.
Just clogging up their financial toilet. I think they are a little late into the game though......
My other post has 5 downvotes on long AUD/USD
Have zerohedge posters also gone mad? I said QE coming don't care which CB. Five downvotes.
Don't they realize this makes gold/silver rise? and also AUD?
Austrialia is commodity rich and you can get 33:1 leverage.
I don't understand your problem. Around here you can get down voted for saying it's a nice nice day, so toughen buttercup.....
I was gonna upvote you for saying a nice nice day, but had to downvote you for forgetting the "up" after toughen...
(now someone can downvote me for being anal)
Got it, and now I refuse to add the 'up'... ;-)
Michelle Leunge better be careful, or she might find herself making a "confession" on state run teevee.
Very unrandom. But it is all about keeping aapl in triple digits because below that is when the panic really sets in.
The more you intervene the worse it gets. Someone should go back to the basics of markets. The stock indices were never invented to be political statements. They were invented raise capital and allow investors to participate in business.
Now that they are actually political measurses and statements they will lose touch with reality. What polticians anywhere in the world deal with realiity?
"Now that they are actually political measurses and statements they will lose touch with reality."
Mostly agree but change 'will lose' to 'have lost'.
Good point. Like being in fog it is dangerous.
Cheap Chinese knock-offs of Amrican made products usually break in short order.
The Chinese people aren't as fucking stupid as the American sheeple. They can see their government and banking system are the same con job. We, not so much.
The people can see it's a con job. They just want to be in on it.
What happens when China's Government buys all the outstanding shares of the largest businesses?? We are back to a pure Communist China with the government back in charge of everything. Bernie Sanders would be proud of their efficiency.
You're a fucking idiot, aren't you?
No need to answer. I know it's a "Yes".
The situation in China seems crazy. It looks like they are running to the end of their chain as far as Communism goes. They need to unleash some of the forces controlling their markets and society, because it looks like it has gotten too big and complex to centrally manage anymore. If they were a democracy they could just concede the next election, but for a single party system there have to be pitchforks for things to change. I pray they don't let it get to that point.
China has likely hired Citatdel or Golden Slacks as "advisors"
Copying The Fed and tThe Treasury trading desks.Who are the real State Controllers here?Pick door 1,2 or 3.