Macro Afternoon

by Chris Becker

Another sea of red across Asian stock markets today as tensions overflow between Pyongyang and Mar-a-lago. The massive lift in volatility on US stocks overnight translated into falls everywhere, particularly local markets which broke significant support. A mixed mood on USD though, with the Yen finding buyers on the safe haven while commodity proxy Aussie dollar fell.

In mainland China the Shanghai Composite has sold off signficantly, down over 1.5% to be at  3210 points as its marks a possible end to its bear market rally.  The Hong Kong based Hang Seng Index is doing the same, falling 1.6% and breaking daily support to be below 27000 points. This sets up for a retracement down to 25300:

Japanese stocks again closed with scratch sessions, with the Nikkei off only a few points but remaining below the 20,000 point level. The USDJPY pair is hovering here just above the 109 handle after a big fall overnight, but as the daily chart shows, below the weekly support line:

S&P futures are steady for now, but it could get ugly tonight:

The ASX200 sold off straight from the start of the session strong and closed 1.2% lower to be at 5693 points. This takes it below the closely watched 200 day moving average and if US stocks follow a similar path tonight, puts paid to a significant correction, possibly down to 5200.

The Aussie dollar remains at three week low sitting on tentative support at 78.60 against USD. There’s been a small blip higher in the last couple hours but price is holding tentatively here as we await the City to open:

The data calendar concludes the week with US CPI for July plus a private oil rig count.


    • The Traveling Wilbur

      I don’t want to be around when that diet comes to a head. ; )

      PS anyone know what the Korean is for: Support is futile?

      • migtronixMEMBER

        I did not, and I do not. Bitcoin is always a long position until the bankers go to jail.

      • Dude the antiquarian thingy was about one mobs taboo, but was cool with everyone else…

        disheveled… did you go to school – ????

      • migtronixMEMBER

        “Dude the antiquarian thingy was about one mobs taboo, but was cool with everyone else…”

        ” The fourth form of trade is usury – the begetting of money from money. Aristotle says that the usurer is the most unnatural of all practitioners of the art of money-making. The lending of money at interest is condemned as the most unnatural mode of acquisition. Aristotle insisted that money was barren. He did not comprehend that interest was payment for the productive use of resources made available by another person. “

      • migtronixMEMBER

        “He did not comprehend that interest was payment for the productive use of resources made available by another person. “

        Complete bullshit – productive use of resources isn’t exponential… Aristotle had it right.

      • Like I said antiquarian….

        But for the purpose of remaining relevant to the time line of modernity and physical operational enviroment one has to factor in all the evidence and not just wank on about ones pet theory’s. The deregulation of the financial sector was supported by the economic libertarians[.] North Dakota and credit cards [20%+IR], Fee extraction via McKinsey & Company and revolving debt due to lowering credit standards 2% and then the whole Born thingy allowing securitization, which then created incentives to game them for bonuses, on top of all that there is the endemic corruption and control fraud, that’s the short list.

        But yeah…. the usury did it ….

        Disheveled… per your quip on weekend links… what are they teaching you young’uns in school today – ????

    • The Traveling Wilbur

      Fair ‘nough… BTC is always a long play.

      I’d add Yen to that list btw. At least that what Mr Market seems to have decided.

      And Mike isn’t Simone. *cheers*

  1. Let’s say it gets serious, a real global massive scale attack & counter attacks by NK to its ‘enemies’ of which Australia is one.

    For the moneyed.
    Defence stocks.
    Food & survival stocks as below.
    Airline tickets to Patagonia, Dunedin NZ or Albany WA.
    Charter boats & Ships to the southern oceans.

    For the stay at homes..
    Bottled water & water purifiers.
    Tinned food.
    Gas camping stoves. Flashlights. Batteries.
    Medical kits.
    Lots of Plastic wrap & tape to block airflow (forget the missiles – the NK backpack nuclear dirty bombs and possibly biological weapons let off in most larger ‘enemy’ cities are the possible real threat )
    Guns, ammunition, machetes, knives in self defence.
    Citizen band radios & transmitters.
    Geiger counters or radiation exposure badges.
    Gasoline & Diesel generators.
    Gasoline & Diesel & food Storage.

    Longer term.
    Korea unification*, Seoul reconstruction.
    After China invades NK to install ‘2 systems, 1 Korea’ and Taiwan handed to China as trade-off.


  2. What was that correlation between H+H going away and volatility? Japan was closed today, futures are smashed, coming away from 25 year old resistance area!

  3. I don’t get it the “progressives” ridicule Trumps remarks and yet are endlessly going on about attacking North Korea and preemptive strikes.

    CNN is handing out its own war manifesto….

    What the bloody hell is wrong with you lefties? Is there something missing in your collective brains?

    I’m sorry but seriously calm down…

    Read a meme or something:

  4. migtronixMEMBER

    Yall act like you never seen
    White privilege before
    Jaws all on the floor
    Open up a student newspaper
    And they’re begging for more
    Little Fabians
    Lefts feeling rebellious
    Because their leaders still
    Listen to Shorten
    Some IQ please

    • Kim Jong-un is only 5.5 foot. Don’t underestimate short man syndrome. Those little fuckers are pissed off.

      • “Excellent Horse-Like Lady”

        Sounds like something they’d play on rage and JJJ.

        “Hyon Song-wol (Chosŏn’gŭl: 현송월) is a North Korean singer, formerly the vocalist for the Pochonbo Electronic Ensemble, a pop group which found fame in North Korea in the early 2000s.[2] Her best known songs include “Excellent Horse-Like Lady”, “Footsteps of Soldiers”, “I Love Pyongyang”, “She is a Discharged Soldier” and “We are Troops of the Party”.[1]

        Hyon Song-wol came to world attention when, on 29 August 2013, The Chosun Ilbo reported that she was executed by firing squad”

      • You kind of gotta feel sorry for him. You’d be hanging there thinking, is this girl sucking my dick just because I am dictator and hold the power of life and death over her? Or does she like me for who I really am?

      • migtronixMEMBER

        “Or does she like me for who I really am?”

        Do you ever feel
        Like a plastic bag
        Drifting through the wind
        Trying to start again

      • All he had to do was sell pot and he got them titties. I’m not committed to either side. Which ever gives me them titties I suppose. It’s all freudian. It’s all about getting a root.

        Even Andrew Wilson and your average specufestor needs big bucks just to bang a 6.

    • The Traveling Wilbur

      New man
      Short en
      Mixing it up on the dance floor
      Dropping the mic right at your door
      Say goodbye to your rights
      Say hello to the left
      Say goodbye to the right
      Say hello to the left
      Wave your hands in the air like they just don’t care
      Build a bridge
      Get it over
      Shake it off
      This is clover
      Build it on up…
      Build it on up…
      To the spirits in the sky

  5. migtronixMEMBER

    Well smithy don’t
    Gotta cus on his comments
    To sell left pablum
    But I do
    So f#ck him and f#ck Boole too

      • Funnily enough wilbs I started with “word salad”, but i noticed the skyscrapers of art from our friends’ words scrolling up. it looked like the manhattan so i changed it to word city!

    • migtronixMEMBER

      Dusk collapses into the dark
      Twelve steps into the celestial
      again another dawn
      Is born
      Twelve disciples and
      Twelve poorly counted
      Lunar cycles
      Lead still unto the