ASX dragged into global bath of blood

AUD is taking some hits this morning:

Bonds are calm:

XJO gapped lower 2.5%. It will get more interesting technically if break into the 5800’s:

Big Iron is hit:

Big Gas more:

Big Gold is up:

Big Banks are still trending lower:

But the real action is in the credit regulatory arbitrage sector with huge moves now daily:

Nobody knows if this is the bust. We can only say that conditions are perfect for it.

David Llewellyn-Smith
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Comments

  1. Goldstandard1MEMBER

    Solid wobble.
    It’s interesting because even the most steely balled trader might cash out soon due to knowing how the recent gains are built on sand. Chain reaction will not be hard to start.

    Nah buy the dip- always works…….until it doesn’t but even the worst case scenario isn’t that bad……oh wait…..

    • One shot in a revolution
      One drop from a poison pen
      […]
      One cruel and callous lover
      One blow below the belt
      One chance without another
      One heart too cool to melt
      One kid that needs some action
      One link in a chain reaction

    • Cash out, but go where? Back to dollars that are gushing from the Fed printer – out of the frying pan and into the fire, for mine.

      How about commodities and inflation-friendly trades? That’s the ticket 😉

      • Goldstandard1MEMBER

        It’s interesting the choices for sure.
        I’m all cash for now with decisions pending. I thinking inflation is 12 months off but there are bloody strong deflation factors at play too.

        • There are no deflation factors where the USD is concerned but the AUD is not being printed to b#ggery in quite the same way (yet). Nonetheless inflation will be problematic next year for everyone.

          • Goldstandard1MEMBER

            For now, I’m staying liquid as there is not enough facts to draw a solid conclusion on direction.
            Stocks Vs Gold Vs Silver Vs property Vs Bonds

        • “For now, I’m staying liquid as there is not enough facts to draw a solid conclusion on direction.”

          Fair call. Hyper-inflation is not a risk so being in cash gives you options for sure.

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