Australian (ASX) Stock Market Forum

The official "ASX is tanking!" panic thread

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I'm starting to lean more towards health stocks, cochlear and mesoblast have been doing super well..

What I don't understand is how Bloody Huge Profit (BHP) is doing so poorly.

Might top up on COH and BHP if things go really pear shaped.

People holding financial stocks - buckle in for the ride! I'm not a short term trader but they must be making a killing out of these!
 
Wysiwyg said:
Yeah where is the next capitulation. :confused: Bloody market is clinging to their shares like rats to some floating debris.
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We processed the news on Monday AND had a bad lead tuesday while the UK market processed it all in one day. XAO sank ~6% over 3-4 days, that's pretty bad.

Doesn't help either when you hear Deutsche bank screaming Lehman Brothers on day of trade.

Anyone seeing a positive lead for the XAO tonight? (Hoping the americans wake up refreshed and optimistic LOL)
 
Chasero said:
I'm starting to lean more towards health stocks, cochlear and mesoblast have been doing super well..

What I don't understand is how Bloody Huge Profit (BHP) is doing so poorly.

Might top up on COH and BHP if things go really pear shaped.

People holding financial stocks - buckle in for the ride! I'm not a short term trader but they must be making a killing out of these!
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As I recall BHP touched $20 a few years ago..... Has this ride south finished?
 
Muschu said:
As I recall BHP touched $20 a few years ago..... Has this ride south finished?
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Around the $31 area looks tempting at the moment if the current market sentiment continues.

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Muschu said:
I think BHP hit $20 exactly in November 2008. At the time I think there was an ASF subscriber saying he would not touch them until they hit the "low teens". I guess he is still waiting.

I have no idea when the SP is heading north but suspect it will not be tomorrow...
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up 2% atm :)
 
skc said:
And they will fail eventually. You can't defend a currency at all costs. Charging negative interest for deposits however would have been a better strategy.
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From the article -

The Swiss franc plunged dramatically versus the euro and other major rivals Tuesday after the Swiss National Bank took the extraordinary step of setting a floor for the euro/Swiss franc exchange rate at 1.20 francs and vowed to buy “unlimited quantities” of euros to defend it.
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Nice "boast" there about their unlimited financial resources, eh? Desperate *bluff* statement by a desperate gummint?

Hey, if the state manipulated SNB are implying they have access to an "unlimited" amount of funds with which to purchase "unlimited quantities" of euros, why don't the Swiss go further in the oneupmanship stakes and offer to buy out ALL THE DEBT IN EUROPE - thereby solving the Eurozone Debt Crisis at a single stroke?

Why dither with their own small fry when they obviously have enough money to buy the planet? ? Hmmm. Surely that would make more $en$e? They want to talk big, let's see them REALLY walk the walk.

LOL.
 
STRONG finish by DOW ("only" down 100pts after climbing back 200) leaves SPI indicating big up leg today.

Here's an interesting take on why so much volatility in the DOW in the final few hours of late...

Banks Driving Widest Price Swings in Last Trading Hour Since 2009: Options

“There are a lot of reasons why the markets are moving so much these days that don’t necessarily have to do with fundamentals,” Jeremy Wien, who trades Chicago Board Options Exchange Volatility Index, or VIX, derivatives at Peak6 Investments LP, said in an interview. The Chicago-based firm manages more than $1 billion. “Banks have to hedge themselves,” he said. “It can have a big effect.”
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and

Fewer Market Makers

Hedges sway prices more because there are fewer firms making markets, said David Palmer, who manages a volatility portfolio at Hudson Bay Capital Management LLC, a New York-based hedge fund that oversees about $1 billion. U.S. regulators oversee 4,525 brokerage firms, 7.7 percent fewer than the level at the beginning of 2009, according to the Financial Industry Regulatory Authority.

“I don’t know if the gamma effect is the biggest it’s ever been, but I will tell you that natural buyers and sellers of gamma such as market makers seem to be fewer and farther between,” Palmer said. “You have a magnified gamma effect because you have less people who are willing to take a stand. And if there’s a lot of uncertainty in the world, then you’d be crazy to stand in front of that freight train.”
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http://www.bloomberg.com/news/2011-...-in-last-trading-hour-since-2009-options.html
 
Aussiejeff said:
From the article -

Nice "boast" there about their unlimited financial resources, eh? Desperate *bluff* statement by a desperate gummint?

Hey, if the state manipulated SNB are implying they have access to an "unlimited" amount of funds with which to purchase "unlimited quantities" of euros, why don't the Swiss go further in the oneupmanship stakes and offer to buy out ALL THE DEBT IN EUROPE - thereby solving the Eurozone Debt Crisis at a single stroke?

Why dither with their own small fry when they obviously have enough money to buy the planet? ? Hmmm. Surely that would make more $en$e? They want to talk big, let's see them REALLY walk the walk.

LOL.
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Well they do have unlimited resource to buy Euros by printing as much Swiss Francs as they wish. They will fail not because the printing press will run out of ink, but when they pump so much liquidity that inflation becomes intolerable, plus the thought of holding onto trillions of Euro crap.

It's one thing to protect your exports by lowering your currency, quite another to buy and hold crap in order to do so.
 
skc said:
It's one thing to protect your exports by lowering your currency, quite another to buy and hold crap in order to do so.
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The USA Federal reserve made a few hundred billion in profits buying "Toxic assets" during the gfc, If they end up holding billions in bonds which they bought at half price and europes problem work through, it could turn into a major opportunistic profit centre for them.
 
Chasero said:
What I don't understand is how Bloody Huge Profit (BHP) is doing so poorly.
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Bhp ( as of last years annual report ) only had circa $10 per share in assets.

However obviously people are prepared to pay $40 for those $10 of assets when they are generating a 40% return on those assets and reinvesting the bulk of the profits back into creating more assets that will generate 25% - 40% return.

However, If a big stick did get caught in the spokes of the global economy and commodity prices halved, Bhp return on assets could drop to 15%, and not many people would want to pay $40 for $10 worth of assets that only earn 15%.

But, obviously no one knows the future, we just have opinions. So if the market starts pricing in very low commodity prices and the stick doesn't end up getting caught in the spokes then you may do very well indeed to buy this stock at current prices and just hold.
 
Nice strong open on the ASX today. Respecting support around 4075 and we'll go for another test of resistance at 4300 or so?
 
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