CBA share price breaks for real

The AUD is still falling this morning as, unusually, consumer sentiment has moved the market:

Bonds are bid a little:

XJO is down:

Dalian down at the open:

Big Iron likewise:

Big Gas too:

Big Gold mixed:

Big Scum is broken. The CBA price support around $69 is busted. $50 looks a good chart target as the bearish descending triangle ruptures:

Same for WBC with a $20 chart target:

Big Idiot still thinks it’s exempt:

It’s not.


      • Super Phoenix

        Shall I call MG and instruct him to offer Global X a deal to buy their 14.4m shares for AUD 2.9m?

      • DominicMEMBER

        I wonder if they’ll still pay a dividend when the Government is forced to take a big stake in the Big 4?

        I wouldn’t want to be Macquarie — I think the Govt would have to drawn the line there.

    • China has begun purchasing minerals including coal from USA to balance their trade. We must keep our AUD currency as low as possible to strengthen our international trade competitiveness.

  1. JspitzerMEMBER

    Bitcoin gonna crash imminent. EEM, Europe and FANGS to follow within a week as USD rockets. This is going to be fast and ugly. 7 years zero interest and QE for the worlds main currency built up some unbelievable bubbles. As Jerome said when he opposed QE, you will see some big increases in volatility when it unwinds.

  2. FiftiesFibroShack

    Interesting action in the +2mil North Shore house market. People at auctions would be, at best, half what they were a year ago. The mania appears gone and the ‘investors’ with it.

  3. Interest rates may very well be artificially lowered, but that isn’t the answer. Higher interest rates were – 10, 8 even 5 years ago. Not now. THIS is going to be very interesting, and probably appalling to watch, on a local and Global scale.

    It is but eighteen months since Buenos Aires issued high-yield 100-year bonds and found the offer massively oversubscribed. Everyone who bought them stands to lose the lot. A staggering $4trillion around the world is now “invested” in such high-yield desperation. What we’re about to see is a world returning to protectionism and higher rates as a form of self-defence against both imports and National Debt. It will bring about the inevitable “normalisation” of interest rates, but the response to it will be anything but normal. Without very low credit costs, the globalist mercantile economy will slump, and almost every South American nation go broke.The Krakatoa of released pressure will lead, eventually, to a world in which everything is completely unrecognizable from what we know today.
    This outcome has been brewing since 2003. But after 15-20 years of trying to cap the volcano, the impact is going to be at least 20 times worse than it would’ve been if Greenspan and his cronies had faced the music at the turn of the Century. (John Ward)

    • Super Phoenix

      But there should be a creditor for every $ of debt out there. Surely everyone cannot go broke?

    • DominicMEMBER

      I largely agree with Ward’s view but I sincerely hope it doesn’t happen: if it does, the social consequences will be beyond dire.

      On the bright side: companies providing security solutions to residential and commercial property will be stock pick of the decade.

    • Cyclone Ranger

      From the ft, back thenish…

      “Argentina sold $2.75bn of the debt with a coupon of 7.125 per cent, equating to an annual yield of 7.9 per cent, according to a statement from the Argentine finance ministry late on Monday. The bond attracted $9.75bn in orders from investors.”

      7%. Jeeeeeez. Someone is not getting paid 16 years from now.