Fed reserve

The package-delivery giant’s cautious outlook runs counter to what Fed Chairwoman Janet Yellen said earlier this month, when she told Congress she expects the U.S. economy to keep strengthening enough for the central bank to raise interest rates “at some point this year.” The Fed’s outlook could become clearer when it releases its latest monetary policy statement on Wednesday.

It also suggests investors should take the relative weakness in UPS stock, as well as the Dow Jones Transportation Average, more seriously, as a warning that a much bigger selloff may be on the horizon for the broader market.

Duh...
The fed reserve bank is not able to predict any better than anyone else, but still they have to say something, and still people listen.  Why they listen, who knows.

Im still buying cameron stock, and recently got some below $50 a share, nice.  Next year I will probably figure out a way to transfer it over to sp500 emini futures. 

No ticky, no laundry

“Large parts of the market are closed, and those stocks that are still trading are selling off regardless of support measures. Clearly something very serious is happening,” said one economist.

The long-standing assumption that the Chinese authorities know what they are doing has been shattered.

The government’s heavy-handed measures include a ban on short sales and on new share issues, as well as pressure on the 300 largest companies to buy back their own stock, and forced purchases of stocks by brokerage houses.

Many investors are effectively trapped with margin debt used to buy the stocks. These liabilities cannot be covered without selling the stocks. The longer the market remains partially frozen, the more likely it will lead to extreme stress.

The chinese market is not a market.  A real market is pushed up and down on its own.  Its just a list of communist- companies people buy and the communists dictate the next day's gain or loss.  Stupid, a fake market.

The russians jumped into capitalism to quick and it shocked them real bad.  They basically had a 20 year recession. I thought the chinese were being smarter by easing into capitalism.  But now I see their mistake.  They are taking baby steps but its all pretend.  The booming capitalism they have is fake.  So they are getting shocked after each expansion period.

Im dissapointed in both.

Another first time since 2007-2009...

SHANGHAI (Reuters) - Chinese shares slid more than 8 percent on Monday as an unprecedented government rescue plan to prop up valuations ran out of steam, throwing Beijing's efforts to stave off a deeper crash into doubt.

Major indexes suffered their largest one-day drop since 2007, shattering three weeks of relative calm in China's volatile stock markets since Beijing unleashed a barrage of support measures to arrest a slump that started in mid-June.

Psychology of average people

So I was honked by two different people today.  I did not do anything crazy in either case and both involved a car from behind racing up to me before having to slow down anyways cuz of traffic or a red light.

This morning  I downloaded q2 earnings from the cameron website. Cam basically had a significantly lower eps than q2 of last year.  People got scared real quick because the stock price sold down almost 6% yesterday, but completely rebounded this morning.  So the people who sold might be wondering if they made the right decision.  But I say, wouldnt u expect eps to be lower this year compared to last year since oil prices are much lower.  I mean, what idiots were surprised and sold out of fear???

An apple a day

Apple’s share price fell sharply after its earnings hit this afternoon. Shares dropped to an after market low of $119.96—about three minutes after the report hit—from a closing price of $130.75. A decline of that order, 8.3%, isn’t unheard of in after hours trading. But given that Apple is the world’s largest publicly traded company by market valuation, that equates to a gobsmacking $62 billion in value. (For comparison’s sake that’s more than the market value of asset management giant BlackRock or consumer products company Colgate-Palmolive.)

But don’t pity Apple, pity yourselves. Because Apple has the largest weighting of any company in the S&P 500 stock market index, pretty much everyone with an index fund has an overweighted position in the Cupertino tech giant. Today we are all Apple. And it hurts.

I see the typical.  Everyone has a little apple, thats why it was so rediculously high, and many panicked together, starting a crash.  The most valuable company in the world, an american company, just got punched in the throat.  And now american equities will fall?...

A chain

Cameron stock has dropped a little lately since oil traded down.  Oil traded down since the dollar traded up.  The dollar traded up since the fed reserve might raise interest rates.

More signs

People are holding the same, high amount of cash they last did in 2008.

Bank of america's expenses are low just like in 2008.

All the us market needs is a catalyst that will spook americans.  The oil crash came and went.  China is crashing but noone cares since they are not the engine of the world like the U.S. is.  Greece gets headlines but its so small noone cares, just like gay marriage rights.  Something simple, big and negative which people like talking about still has to happen before the crash starts.  It might as well happen now since indexes are stuck at a ceiling, going sideways.  Something buzzworthy thats causes sell orders.

China is not trader friendly

1. The government is essentially buying stock: The CSF is lending $42 billion (260 billion yuan) to 21 brokerage firms so they can purchase "blue chip" stocks. That's on top of what the $20 billion the brokerages vowed to buy over the weekend.

2. China is even buying small stocks: The CSF also pledge to buy more small and medium-sized stocks, although there was no specific amount given of how much would be spent.

3. New stimulus: A new $40 billion (250 billion yuan) plan announced Wednesday to foster growth in areas of the economy that need it most. China's economy has been slowing down.

4. More government spending: China will also speed up infrastructure spending that the government was already planning to do such as building roads and utilities.

5. Over half of China's stocks have stopped trading: China has allowed half of the companieson the stock exchange to halt trading in their shares.

Related: Over half of China's stocks have stopped trading

6. Big shareholders can't sell for 6 months: Starting Wednesday, controlling shareholders and board members are prohibited from reducing share holdings via the secondary market for six months. China Securities Regulatory Commission promised it would "deal with them seriously" if anyone violated that rule.

7. No more IPOs (for now): China stopped any new stock listings over the weekend.

8. Central Bank slashed rates: China's central bank has cut rates to a record low in an effort to pump more money into the system.

9. Investors have a lot of leeway now on collateral: Investors now have more options to back their margin trades. Many investors speculated on stocks -- they would borrow money to buy stock because they thought the stock would go up and they would make enough money to pay back the loan and make a profit. Chinese investors can even pledge their homes as collateral, according toBloomberg.

10. Devaluing the yuan: China's currency has fallen heavily in July against the dollar. There's speculation in the Asian press that it will slide even further. A weaker yuan makes Chinese exports to the U.S. and elsewhere cheaper, so it should help jumpstart growth.

So far, all the Herculean efforts have failed to calm the markets. According to Bespoke Investment Group, China's stock markets have now lost $3.25 trillion. To put that in perspective, that's more than the size of France's entire stock market and about 60% of Japan's market.

 

 

 

 

 

 

 

Latin america

China is the biggest trade partner to many Latin countries, but the U.S. has tried to reassert its presence in recent months. Still, China's sluggish growth is pulling Latin America down with it.

"We're expecting very, very weak growth," says Eugenio Aleman, senior economist at Wells Fargo Securities. "Brazil is in bad shape. Argentina isn't much better. Chile has slowed down to a trickle...Peru is slowing down considerably."

That's just the beginning. Venezuela is arguably the world's worst economy with sky-high inflation. Next door, Colombia has the world's worst stock market this year. Its index is down 13% so far this year. The second worst is Peru, down 12.5%. By comparison, America's S&P 500 is flat this year. (Argentina has the world's best stock market, but that's more a reflection of politics than economics).

Greedy, desperate communists

But perhaps there is a simpler explanation for Beijing’s extraordinary efforts to support equities: It created this bull market. Keeping it going is now seen as a test of the Communist Party’s strength, and possibly even its legitimacy.

If you created the boom, arguably that also puts you on the hook for the bust. For the government, this means the fallout will not just be economic, but could also be political and social too.

Since last year, stocks had been cajoled higher through a mixture of cheerleading from state media and accommodative policy measures. As the People’s Daily, the official mouthpiece of the party, declared earlier: “4,000 points is just the beginning of China’s bullish market.”

The very visible hand of the state was involved in the systematic underpricing of IPOs and in steering margin financing towards equities for the first time. All this prompted the opening of 30 million new trading accounts this year by novice investors — many on margin — promised easy riches by their government.

Its all greek to me

Angry and exhausted after five years of pension cuts, falling living standards and rising taxes, Greeks now face closed banks, rationed ATM withdrawals and the prospect of the country literally running out of cash.

Pensioners besieging bank gates to claim their retirement benefits, only to leave empty-handed and in tears, have become a symbol of the nation’s dramatic fall over the past decade, from the heady days of the 2004 Athens Olympics to the ignominy of bankruptcy and bailout.

It will end in tears

China's government, regulators and financial institutions are now waging a concerted campaign to prop up the nation's two main share markets, amid fears that a meltdown would rock the financial system and inflict heavy losses across an economy where annual growth is already running at a 24-year low.

Almost $3 trillion in market value - more than the entire economic output of Brazil - has been wiped out since markets went into reverse last month, posing a bigger headache for many global investors than even the Greek debt crisis.

Communists with a stock market

What's happening in Chinese markets?
Fill in the blank: In recent weeks, China's stock markets have __________________.
A) Wiped out as much as $2 trillion of investors' wealth.
B) Swung by as much as 10% in a matter of hours.
C) Scared the living daylights out of millions of shareholders.
D) All of the above.
Yes, correct! The answer is "all of the above." China's stocks markets have been swinging wildly since the middle of last month. One minute shares are up 6%, the next they're down 5% and plunging into a bear market. The main Shanghai market lurched lower again Thursday, dropping 3.5%.