ASX smashed

XJO is taking it right in the team this morning, down 2.3%, with a nice double top in place short term:

And downright epic long:

Bonds are bid:

AUD too:

Big Iron is falling off a very high perch:

Big Gas is in severe danger as oil crumbles:

Gold up:

Big banks are nasty:

Even Big Scum is copping it:

Definitely a whiff of sulfur in the air this morning…

Houses and Holes

David Llewellyn-Smith is Chief Strategist at the MB Fund and MB Super. David is the founding publisher and editor of MacroBusiness and was the fouding publisher and global economy editor of The Diplomat, the Asia Pacific’s leading geo-politics and economics portal.

He is also a former gold trader and economic commentator at The Sydney Morning Herald, The Age, the ABC and Business Spectator. He is the co-author of The Great Crash of 2008 with Ross Garnaut and was the editor of the second Garnaut Climate Change Review.

Comments

  1. Into the mercy seat I climb
    My head is shaved, my head is wired
    And like a moth that tries
    To enter the bright eye
    I go shuffling out of life
    Just to hide in death awhile
    And anyway I never lied.

  2. Hopefully people have realised the country is rooted. We’re slashing rates to help ease cost of living pressures aka real inflation. Historically we raised rates, cleared out the crap and within a few years we had a clean sheet again. Now the boffins scratch their heads trying to raise a fart out of the economy but it’s a dead duck.

    • Does anyone actually believe the reasons for record low interest rates? Basically the elite rent seakers are all in with no chips left, circling the table… The dealer (the RBA) has a loaded deck.

  3. It’s October. Even at these reduced levels, stocks here and in the US are at valuations which do not reflect risks and returns. I am expecting the asx to be more than 10 per cent down by the end of the month. Then, you just might say the market’s been smashed.