China's Emergency Rescue Is Working: Chinese Futures At Session Highs

Tyler Durden's picture




 

Chinese stocks have retraced 50% of their overnight losses following the lifting of the circuit-breaker rule. China FTSE-A50 Futures trading on SIMEX are up over 250 points, trading at the highs of the day but for some context, the index is still down 14% from post-Christmas highs.

 

 

What happens when China opens? What would you do with a stock market trading at 64x P/E and as fragile as it has been proved to be?

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Thu, 01/07/2016 - 11:31 | 7011276 Vlad the Inhaler
Vlad the Inhaler's picture

Meh, Tomorrow they will announce resuming the circuit breaker.

Thu, 01/07/2016 - 11:32 | 7011281 JamaicaJim
JamaicaJim's picture

Markets?

 

Where?

Thu, 01/07/2016 - 11:35 | 7011296 conraddobler
conraddobler's picture

This is all the result of psycopathic behavior brought on by modern psychosis.

We've all lost our ever lovin minds.

They are completely shitting in their own nest scrambling to catch up to the Joneses never mind if the Joneses are even worthy of emulating.

Mankind is collectively going insane.

The solution is to live in harmony with earth, you need a water cup and some clothes on your back and not much else and once you have so many people that this becomes impossible as a lifestyle so that you need modern systems to feed everyone you've jsut completely jumped the shark and have created your own cycle of doom.

All this to have more stuff you can't even take with you.

Meanwhile some people are living very simply and they are happy because ignorance is bliss.  They will be happy until they get modernized and assimilated into the Borg collective.

60 million formerly alive native Amerian's could have testified to what I'm saying.

You think we are all happier and more well adjusted than they were?   

This is not how we were designed to live and it's not going to work out well long term.

Thu, 01/07/2016 - 11:38 | 7011322 carneades_jazz_hands
carneades_jazz_hands's picture

Gartman and Cramer must both be negative.  

Thu, 01/07/2016 - 11:46 | 7011379 tarabel
tarabel's picture

 

 

In many ways, the China drama is quite intesting to observe. Thankfully from a distance.

Every time the market drops through retail selling, Chinese governmental and SOE clients step in to bid things back up to a semblance of rosy-cheeked health. This requires the liquidation of that legendary pile of FX reserves, which the retail investors then expatriate as fast as they can waddle away with it.

China is, in effect, re-communizing right before our eyes. Eventually, the state will own all the shares of every enterprise and have no financial exposure to the rest of the world. Every Chinese citizen will labor for some corporate facade that is ultimately owned by the State and will entrust their life savings to some other corporate facade that is also owned by the State. An interesting new Potemkin Village collectivism that is designed to mislead the locals rather than gullible foreign visitors.

Thu, 01/07/2016 - 11:54 | 7011459 Dg4884
Dg4884's picture

F China, that is what happening in the U.S. before our very eyes!

Thu, 01/07/2016 - 12:44 | 7011870 tarabel
tarabel's picture

 

 

I think we're more into fascist-izing rather than communizing but it is certainly more of a distinction than a difference.

Thu, 01/07/2016 - 12:10 | 7011595 Michigander
Michigander's picture

"China is, in effect, re-communizing right before our eyes. Eventually, the state will own all the shares of every enterprise"

Japan is much further along that path. Its not communising or socialising, its euthanising.

Thu, 01/07/2016 - 12:42 | 7011857 tarabel
tarabel's picture

 

 

Hadn't really thought about the similarities with Japan, but you are right.

Thu, 01/07/2016 - 12:44 | 7011873 Thought Processor
Thought Processor's picture

 

 

Yes to all of the above.

 

Essentially an end to all free working mechanisms and a regress to central control.

 

Especially in the US, though here it's masked by the perception of democracy.

 

Aint life grand

 

 

Thu, 01/07/2016 - 11:52 | 7011446 Dg4884
Dg4884's picture

Index will be back over 17K by 2:30pm EST.  By hook or CROOK!

Thu, 01/07/2016 - 11:58 | 7011503 Sir John Bagot Glubb
Sir John Bagot Glubb's picture

Someone needs to commend that Gordon Chang, a China pundit on TV once in a while.  He's affiliated with Doug Casey's group from time to time.  He predicted China's collapse as long ago as 2010 and was almost laughed at on TV.  He said it was going to be a catastrophe.  He said their overcapacity, overproduction, like the orders would never cease, would do them in, not to mention not having real markets.  I'm sure overcapacity would always be the result when government tries to forever eliminate the business cycle.  So there you have it:  government causing all the problems once again.  

Thu, 01/07/2016 - 12:00 | 7011505 Mr. Cynic
Mr. Cynic's picture

Doesn't change the underlying rot.

Seems like they wan to "fix" the market rather than fix the economy as if perception is reality.

Thu, 01/07/2016 - 12:22 | 7011680 Sir John Bagot Glubb
Sir John Bagot Glubb's picture

Seems to me that when you have people get in power who got there on account of people's perception of them versus any realisitic appraisal of them or their achievements, to wit:  Barry Obama, you are going to get a government that mirrors that.  Perception of themselves and those around them is their reality and so that is what they will try to implement on all levels.  That explains Josh Ernest.  He can't say one thing that dispels the percption of this Administration being in total control and that everyone else is stupid and biased.  I see the Securities and Exchange Commission's email pronouncements everyday and everything they do now is to foster a belief that they are wonderful and doing such a wonderful job.  It is ALL about fostering a good perception in the mind of the public, not substance.  Virtually all of the SEC staffers didn't do anything over the Christmas holidays but they had programmed their PR machine to relase press releases and what-not automatically throughout the holidays, all to convince the public the staffers were working until midnight every night when in reality, they weren't even around.  

Thu, 01/07/2016 - 13:04 | 7012052 mendigo
mendigo's picture

Release the Krack[-ho' Yell]en.

Thu, 01/07/2016 - 22:08 | 7015146 JenkinsLane
JenkinsLane's picture

Good question. 

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