Imminent and severe market correction

[numbercruncher]

Futures aren't looking that bad. But certainly, I can't see how the DOW is going to be up tonight.

Gonna be a long 2 nights I think. Coffee or benny powder?

I nearly deleted Google off my PC cause the Mrs knows everything, but it seems both the Mrs and Google havnt heard of Benny Powder lol, what on earth is it ?

 

[chops_a_must]

I nearly deleted Google off my PC cause the Mrs knows everything, but it seems both the Mrs and Google havnt heard of Benny Powder lol, what on earth is it ?

"We're flying high"

 

[numbercruncher]

"We're flying high"

Oh I've lived a sheltered life!

 

[Whiskers]

What a fickle lot the yanks are!

The FTSE was going great guns until this came out and it plumeted like a rock.

Was just starting to feel confident about a good up day here tomorrow and they do this.

Well, they've got a couple of hours to decide well maybe it's not that bad and come back a bit.

 

[Kauri]

wonder why???
Cheers
.........Kauri

Merrill In Talks Over $5 bln Infusion From Temasek - WSJ Tokyo, December 21. The latest in what looks to be trend - cash infusions into US and European financial institutions from Asian and Middle East sovereign funds.

 

[Whiskers]

wonder why???
Cheers
.........Kauri

Yeah, I saw one of the big US Banks, can't recall which one, got injection from a Chinese insto. If I understood it correctly the Chinese insto can convert to equity, I think abt 10%.

I wonder what this means in the longer term, apart from them all having a minority stake in US business?

 

[numbercruncher]

Its kind of amusing and kind of sickening to see after some 10 years of so called record economic expansion (consumerism!) that the US has record household and Government debt and Foreign entitys such as sovereign wealth funds snapping up huge swaths of holdings in these corporations.

The US has very little if anything to show for the last umpteen years, sorta like an Alcoholic has nothing to the next day but a sore head and alot of empty bottles.

Its a bit frightening really.

 

[ithatheekret]

The witches will be out on the European Bourse today/evening .
But if we think we have seen volatility ........ wait till Jan/Feb . 08

 

[nioka]

Its kind of amusing and kind of sickening to see after some 10 years of so called record economic expansion (consumerism!) that the US has record household and Government debt and Foreign entitys such as sovereign wealth funds snapping up huge swaths of holdings in these corporations.

The US has very little if anything to show for the last umpteen years, sorta like an Alcoholic has nothing to the next day but a sore head and alot of empty bottles.

Its a bit frightening really.

Exactly the same thing in OZ. We have current account deficits exceeding a billion each month and have had for many years. We have sold all the Aussie icon companies one by one until we own very little. We are lucky we can dig a bigger hole in the ground than the US. It must run out sometime and then the overseas owners will want their pound of flesh.
Like you say, it is a bit frightening really.

 

[surfingman]

The witches will be out on the European Bourse today/evening .
But if we think we have seen volatility ........ wait till Jan/Feb . 08

Hey ithatheekret,

Just curious why do you think their will be increased volatility Jan / Feb?

Is this because performance in previous years (on the charts) in Jan / Feb are historical down, combined with a poor conclusion to the year thus far? or am I not even close to the reason?

Cheers
Surfing_man

 

[Whiskers]

Looks like a good night coming up and a good start for us next week... or a clanger if the US get that fickle feeling back.

Funny how their sentiment flies when they can get more credit.

07:58 am : S&P futures vs fair value: +14.3. Nasdaq futures vs fair value: +20.0. A considerably higher open is expected. Two news items, in particular, are behind the bullish bias. The first is Research In Motion's (RIMM) better than expected third quarter earnings report and fourth quarter guidance. The second item is a Wall Street Journal report that Merrill Lynch (MER) may be on the verge of receiving a $5 billion cash infusion from Temasek Holdings, a state-owned Singapore investment firm. As a reminder, today is a quadruple witching options expiration day with stock options, index options, index futures and single stock futures due to expire. Trading volume should be heavy as a result.

 

[Uncle Festivus]

While sentiment appears to be improving somewhat, the bigger picture appears to be entering a secular bear with a S&P500 double top on the monthly. Early days consolidation or a roll-off into the bear den? Clearly broken out of upward trend.

 

[ithatheekret]

Hey ithatheekret,

Just curious why do you think their will be increased volatility Jan / Feb?

Is this because performance in previous years (on the charts) in Jan / Feb are historical down, combined with a poor conclusion to the year thus far? or am I not even close to the reason?

Cheers
Surfing_man

Sorry I haven't visited this thread lately , hence my late reply .

Jan/Feb will be the slow off the mark starters , March will have a few latecomers do a dash , April and May will see the sleepers awaken with a fright finding the dream they thought was a nightmare a reality .
Then somewhere along the race the Refs will reshuffle the indexes and toss the jokers .

Instability is the thrust of the reason . If you look at the chart on the S&P500 Unc has provided for us , you can see the 07 result of an index cram packed with financials . Now think forward on the resets for loans , the CDOs that haven't made it through to the surface of the slick and the next type of CDOs that haven't even started to shake the foundations yet .
I was joking with friends over drinks last night and mentioned that it was economics that put the hole in is fathers foot , he limped out of the Oval office . His son will either be carried out or dragged out screaming ...... but he's left a bigger wake than daddy did .

The chart [ Uncs provided ] looks like its gone one better on Janet Jackson and given us a good gawk ...... wait till we see the panties or the crusty y fronts of Wall Street . It won't be nice .

The Presidents economic reasoning ....... , a last ditch effort was shown in his veto on the Defense Authorization Act section 1083 to be precise . This was a section of the bill that would allow the confiscation of assets and the right to sue sponsors of terrorism . The self appointed Champion of this fight , has just knocked it for six , with a bigger swing than honourable D. Lehman . An American saying fits well here , " go figure " .

An Aussie saying can rebutt it , " too easy " .

The bill would have seen the immediate withdrawl of mega US pesos , crotched Condella Rice ( big worry that girl ) and the US foreign policy in one foul swoop . Georgie Porgie stuck in his thumb and pulled out a Sovereign Fund , these are money to burn machines ..... and they will do exactly that .
He doesn't want to wave a stick at Mr C. Ash .


Jan/Feb , March this will see the wealth creation teams turn into wealth preservation teams .

New strategies will be needed , the share market will not offer these until we see new runoffs in the ETFs as their range is nowhere near as sophisticated as the market has evolved into , stuck in a rut selling the same 'ol , over and over . 08 is a cleanup year , they've just had one Tsunami and it was only a small wave to date ........ look at the damage and think forward again .

Can you see the next wave yet ?

We are going to need a lot more of Mrs Palmer for our boards .

 

[sassa]

Why is Japan the only major world stock market to record a loss for the year?

 

[Kauri]

mmmmmm..
Cheers
.........Kauri

January 2nd. The press is closely eyeing the likely risk contagion from Centro Property Group following the news today that the group may put itself up for sale ahead of a deadline on February 15th to roll over $A3.9 bln in debt. The company lost over 70% of its value in December and is only worth an estimated $A878 mln. Centro currently owns 124 shopping centers in Australia and about 700 in the US. One report says that the group has leveraged purchases of $9 bln of US shopping centers since 2005.
What is raising concerns is that a sale will lock in losses for both lenders and investors, fuelling another wave of global risk aversion. The WSJ reports that lenders to Centro including RBS, JP Morgan Chase, ANZ, NAB, CBA, St. George and BNP Paribas. Investors are said to include property security funds from UBS, MacQuarie Bank and Colonial First State. Companies tipped as possible buyers of Centro including GPT and Colonial First State. The impact for the AUD from the Centro concerns is more likely to be fuelled by global risk aversion concerns which would weigh on AUD/USD and AUD/JPY.

 

[ithatheekret]

Build on bonfire , build a bonfire , buuuurn other peoples money ...........

 

[theasxgorilla]

Build on bonfire , build a bonfire , buuuurn other peoples money ...........

Sounds interesting...can you elaborate on that for us?

 

[ithatheekret]

This is just one example ........ CitiGroup

 

[ithatheekret]

Here's another .......... National City Corp.

 

[ithatheekret]

There's more no kitchen knives just falling ones ........