by Chris Becker
The shocking Asian yesterday translated into first, a repeat, but then a bounce of risk going into the US session before a late selloff as participants realised the worse is not yet over. The biggest loser of the night was oil which was slammed over 6% as WTI starts to dance with a possible $20 something handle soon. The ’90s are back, even though sadly David Bowie is gone. Meanwhile, quarterly earnings season is starting to ramp up for US stocks and with profit margins falling below recession trigger settings, its going to be a very interesting month!
Recapping Asia first where we have to continue to deal with the craziness that is Chinese stock markets. The Shanghai Composite opened well after the steady Yuan fix, but was slammed in the post lunch session, falling 5% to just above terminal support at 3000. Its all but over for this stinking edifice with 2000 points my downside target:
