Recovery or Dead Cat Bounce?

[Buckeroo]

It's been a little while now since I've seen the US futures take a 2% beating.

Is this still on the back of poor consumer sentiment in the US? Or something more sinister?

Cheers

 

[Aussiejeff]

Poor puddycat.....

Only one life left.

 

[trainspotter]

Tommorows going to be ugly!

Forget tomorrow ... today it is in for a whipping. Does it turn into a pumpkin at midnight? LOLOL.

 

[Sean K]

We could be in for the overdue correction from the bottom also. Potentially a good buying opportunity.

 

[snowking]

We could be in for the overdue correction from the bottom also. Potentially a good buying opportunity.

i hope it will be a good buying opportunity as i am still accumulating stocks and this latest surge in share prices has gone too far imo.

 

[RayG]

Don't get excited bears, it's the long anticipated bull market correction, nice buying opportunity.

 

[moXJO]

Media might be gathering to bash the XAO down a bit :

http://www.fnarena.com/index2.cfm?type=dsp_newsitem&n=3105309D-1871-E587-E170AAF536C0E7EB

Recent economic growth data show the massive fiscal stimulus program instigated by the Chinese Government has provided a boost to the Chinese economy, especially in the six months to the end of the March quarter this year, but in the view of Standard Chartered there are now signs this boost is quickly fading.

This coincides with the Ministry of Finance dialing back on its monetary policy settings, making what it describes as a "moderate adjustment" without providing much detail on what this actually means. Given concerns it could mean something along the lines of increasing the deposit reserve requirement for banks or even an increase in interest rates, shares in China have sold off heavily in recent weeks.

 

[bugmenot]

Media might be gathering to bash the XAO down a bit :

http://www.fnarena.com/index2.cfm?type=dsp_newsitem&n=3105309D-1871-E587-E170AAF536C0E7EB

Yep, its started, MSM are going to have a field day with this! Hold on folks, the rollercoaster is about to head through the floor...

http://www.bloomberg.com/apps/news?pid=20601087&sid=auVL4UJfdoJU

China Stocks Enter Bear Market as Index Falls 20% From High

Aug. 19 (Bloomberg) -- China’s stocks fell, driving the benchmark index into a so-called bear market more than 20 percent below this year’s high, on concern the nation’s economic recovery will falter as the government reins in lending.

The Shanghai Composite Index fell 4.7 percent to 2,774.77 as of 2:44 p.m. local time today, increasing its loss since the 14-month high on Aug. 4 to 20.2 percent. The gauge remains 59 percent below its record level on Oct. 16, 2007.

Prime Minister Wen Jiabao’s 4 trillion yuan ($585 billion) stimulus package, coupled with record bank lending in the first six months, helped the Shanghai index to more than double this year from the low on Nov. 4. The rally faltered as new loans in July declined to less than a quarter of June’s level, the regulator allowed initial share sales after a nine-month moratorium and companies including Yunnan Copper Industry Co. reported losses. China follows Russia among the so-called BRIC bloc of major emerging economies to have entered bear markets.

“The current correction is reflecting the tightening in lending,” said Andy Xie, a former Asian chief economist at Morgan Stanley, who correctly predicted in April 2007 that China’s equities would tumble. “We’ve seen the peak of this market cycle, though there’s likely to be a bounce as the government seeks to stabilize the market.”

The market may extend its decline by another 10 percent, Xie said Aug. 17. Even with the recent decline, the Shanghai index is trading at 30.4 times reported earnings, against 17.5 times for shares on the MSCI Emerging Markets Index.

An estimated 1.16 trillion yuan of loans were invested in stocks in the first five months, China Business News reported on June 29, citing Wei Jianing, a deputy director at the Development and Research Center under the State Council, China’s Cabinet.

To contact the Bloomberg News staff for this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net

 

[Aussiejeff]

Yep, its started, MSM are going to have a field day with this! Hold on folks, the rollercoaster is about to head through the floor...

http://www.bloomberg.com/apps/news?pid=20601087&sid=auVL4UJfdoJU

China Stocks Enter Bear Market as Index Falls 20% From High

Aug. 19 (Bloomberg) -- China’s stocks fell, driving the benchmark index into a so-called bear market more than 20 percent below this year’s high, on concern the nation’s economic recovery will falter as the government reins in lending.

The Shanghai Composite Index fell 4.7 percent to 2,774.77 as of 2:44 p.m. local time today, increasing its loss since the 14-month high on Aug. 4 to 20.2 percent. The gauge remains 59 percent below its record level on Oct. 16, 2007.

Prime Minister Wen Jiabao’s 4 trillion yuan ($585 billion) stimulus package, coupled with record bank lending in the first six months, helped the Shanghai index to more than double this year from the low on Nov. 4. The rally faltered as new loans in July declined to less than a quarter of June’s level, the regulator allowed initial share sales after a nine-month moratorium and companies including Yunnan Copper Industry Co. reported losses. China follows Russia among the so-called BRIC bloc of major emerging economies to have entered bear markets.

“The current correction is reflecting the tightening in lending,” said Andy Xie, a former Asian chief economist at Morgan Stanley, who correctly predicted in April 2007 that China’s equities would tumble. “We’ve seen the peak of this market cycle, though there’s likely to be a bounce as the government seeks to stabilize the market.”

The market may extend its decline by another 10 percent, Xie said Aug. 17. Even with the recent decline, the Shanghai index is trading at 30.4 times reported earnings, against 17.5 times for shares on the MSCI Emerging Markets Index.

An estimated 1.16 trillion yuan of loans were invested in stocks in the first five months, China Business News reported on June 29, citing Wei Jianing, a deputy director at the Development and Research Center under the State Council, China’s Cabinet.

To contact the Bloomberg News staff for this story: Chua Kong Ho in Shanghai at kchua6@bloomberg.net

Nah.....

The new, more positive "Glass Is Not Empty...Yet" attitude will ensure US, UK & OZ markets rocket north regardless.

That old, hoary "Glass Is Half Full" attitude is s-o-o-o passe.

 

[Knobby22]

Nah.....

The new, more positive "Glass Is Not Empty...Yet" attitude will ensure US, UK & OZ markets rocket north regardless.

That old, hoary "Glass Is Half Full" attitude is s-o-o-o passe.

I think the markets will keep rising until everyone is convinced that the worst is over and there is no danger in the market and then it will correct.