Macro Afternoon

by Chris Becker

While it was a “yes” here in Australia, Asia is saying no to risk with stock markets continuing to selloff amid a broadening correction. The solid GDP print in Europe overnight was followed by a positive, but no upside surprise in Japan today, but sentiment sent stocks down as the Yen appreciated.

In mainland China the Shanghai Composite is down nearly one percent towards the close, to be just above critical support at the 3400 point level. Similarly, the Hang Seng Index is down below 29,000 points by falling nearly 0.7% as yesterday’s candle signalled an apex here on the daily chart. This should revert to the trendline down to 28600 or so:

S&P futures continue to retreat on the risk off move, straight down to key support at 2575 points:

Japanese stocks have fallen the most in the region with the Nikkei down 1.6% to be just above 22000 points as it plummets through daily support as part of a wider correction.  The USDJPY pair sold off before the GDP print and went below the 113 handle briefly, holding on here but I expect further falls tonight as the US CPI print comes in:

The ASX200 slumped again today, following the Aussie dollar lower on the wage print, closing 0.6% lower to 5934 points. The losses were again shared equally among banks and miners, but commodity prices are really starting to weigh here on the materials sector, so watch out below.

The Australian dollar has had it now, flopping straight through the 76 handle on the back of todays wage “growth” print. This could get ugly (or beautiful depending on your point of view – there’s beauty in chaos and shorting things!) as there’s SFA support down to 73.50, and then 71 very quickly:

The data calendar includes a big one tonight – US CPI – then retail sales and for the oil watchers, the DOE crude oil inventory report.

Comments

      • Don’t be so sure about that.

        A few weeks ago Skipster was talking big about his new PC specs. Reckon he might be doing a bit of mining on the QT.

        Probably running it on solar during those sunny Queensland afternoons to improve the margins and keep Mother Earth cool.

      • Bought what the speculatitve funds pool allowed. Network hashrate has stabilised as the price has come back. Fiat continues its march towards zero. Good times.

        The other part of the speculative pool was tied up in CANn group (ASX:CAN), which at this stage resembles a parabolic FOMO move. Cannot complain.

      • Miggie….

        No I won’t buy it, no matter how ludicrous the notional price goes up…. did you miss the GFC or something – ????? – it makes Marx’s comments about M-M look asinine. How can you even call yourself a capitalist when in fact you more resemble the wet rats in the back streets of London trading paper wealth tho creating none.

        oo7….

        Thank you for dropping the facade about yourself, btw way no the comp up grade is to facilitate some physic models I play with and assist in other like minded pursuits. FFS why would I waste it on mining crypto unless you think mining nothing is some sort of path to enlightenment or social up lift.

      • Skippy,

        Not mining BitCoin with solar power?

        It would have been impressive if you were.

        Physics models? You working on the Elon Musk Cape York rocket launching facility?

        Just say No with an accent on the O and we will take that as a Yes.

        Facade? I have always been very deep Green on climate. I would make you sound like Koch Brothers.

    • And just how many times are you douchebags going to blame me for your stupidity? I said I’d be back in a week to tell you this, it’s only been two days!!!,

      But you’re still going to me you’re the genius for putting 100k plus in “that” fund

      • The Traveling Wilbur

        Hi Mig… remember I’m the one saying there’s no value to BTC. But I’m not saying you (especially you) won’t make money from trading it.

        So I get why BTC is a good trade. I get why blockchain (and patents) are immensely valuable. I still don’t get why Bitcoin should be seen as having a true value of 7000 or even close to that. But when it’s trading that’s being discussed, value is irrelevant. That’s what the others are missing. It’s the trade of a generation and I wish I was in on it too. Nothing in the kitty for that kind of action right now. Not when it could go to (near) zero in a day.

        Gots to go… see you on this afternoon’s Macro page?

        And yeah… MB fund… hard not to make unflattering comparative comments. But I shall resist. Barrel. Fish. Uzi.

Leave a reply

You must be logged in to post a comment. Log in now