By Chris Becker
“Cash? Why would you want to be all in cash?” This question has been asked all year and the answer is in front of you, as this “buying opportunity” turns into something else. Stocks tumbled 3% overnight, almost breaking down as the canary in the mining GFC, Glencore, keeled over. But it wasn’t just the commodity giant, bubbly biotech stocks in the US fell over as the breadth of the market in US stocks is shown to be paper thin, held up only by giants like Apple. The dominos are all lining up for a deep bear market if current levels do not hold. Bond markets know what’s up – or down – and were bid strongly across the curve while gold remained steady.
Recapping Asia’s session, where the Shanghai Composite miraculously rallied after lunch to close just above 3100 points. It still remains above terminal support at 3000 points as the epic head and shoulders pattern – that you’ll see repeated across most bourses – continues to form. Watch that neckline:
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