Dow futures skid nearly 2% Monday as fear of market contagion from China’s Evergrande intensifies

[catfish1957]

https://www.marketwatch.com/story/dow-futures-drop-300-points-as-china-property-fears-grow-11632121264?mod=mw_latestnews

<snipit>
U.S. stock futures fell sharply on Monday, with those for the Dow Jones Industrial Average tumbling 500 points, as Hong Kong-listed property companies came under fresh pressure.

Investors also were positioning ahead of this week’s Federal Open Market Committee meeting.

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DJIA futures are down almost 2% this morning, indicating a likely 700 point drop at opening.  This after two consecutive weeks of markets falling.

The Evergrande bond supposedly has sank to 29 cents on the dollar.  These are the tales that trigger hyperinflation quickly

Adding this news item, crytpocurrency markets are in turmoil. I have said a 100 times that a 33K DOW is unrealistic and unsustainable Final trigger for a Big Bear Market?  We'll see.

[catfish1957]

11AM EDT Market time....

NASDAQ down 2.5%

U.S. Paper tanking too....

10 Year Bond rates down 3.7%
30 Year Bond rates down 2.5%

Tulips, uhh I mean Bitcoin down 8.3%

[catfish1957]

DJIA now down 800 points.  (Now 850, 5 min. later)

Reading reports that the Chicoms are not thrilled at all at the $3.5T Biden Porkulus package. As I mentioned earlier, US paper is tanking, and the Chicoms are in the bullpen getting ready to play a game of Bond Debt Chicken.

Someone needs to tell Biden, that this is not a game a chicken we can win. (1) If the Chinese pull the trigger, watch significant devaluation of our currency against others. (2) That in turn will likely create an consortium of China, Russia, OPEC nations to decouple from the dollar as reference currency.  Everyone else will soon follow suit, as the $ collapses.

Could possilbly the SHTF situation that will throw us into 3rd World status. This might not be the triggering event.  But this will happen at some point

[Free Vulcan]

I said it a few times last month the market was ready for a significant retraction. It was way to frothy and starting to go parabolic.

The Hong Kong properties market turmoil is the first I've really heard of that, and it's adding to it, but still I think it's a smokescreen.

The markets are really worried about earnings next month, which may not be all that hot.

[catfish1957]

I said it a few times last month the market was ready for a significant retraction. It was way to frothy and starting to go parabolic.

The Hong Kong properties market turmoil is the first I've really heard of that, and it's adding to it, but still I think it's a smokescreen.

The markets are really worried about earnings next month, which may not be all that hot.

Not including the fact that the aveage investor does not understand that inflation enters the equation at the equity price level. A $100/sh stock a year ago at static, maybe be really worth $92/sh in real time dollars.

[Right_in_Virginia]

https://mobile.twitter.com/JackPosobiec/status/1439929387692998665

[libertybele]

I heard this morning on Beck that Morgan Stanley is predicting a 15% drop.  I'm predicting near 45-50%.

[mystery-ak]

-892

[libertybele]

Market down 940. I think this is a quick correction and we'll see a slight rally tomorrow.

Get ready for October, which is usually the worst month for stocks.  I don't think things are looking good for the remainder of the year.

[catfish1957]

obile.twitter.com/JackPosobiec/status/1439929387692998665

Shades of 2008. Ladies and Gentlmen...  we have put the seat belt signs on.

[catfish1957]

Market down 940. I think this is a quick correction and we'll see a slight rally tomorrow.

Get ready for October, which is usually the worst month for stocks.  I don't think things are looking good for the remainder of the year.

Fully agree.  Have said for some time that the markets should be worth about half of present market value.  Unsustainable P/E ratios, and speculative plays that are making 2000 look like child's play.

[Kamaji]

Another Black Tuesday in the offing?

[Free Vulcan]

Not including the fact that the aveage investor does not understand that inflation enters the equation at the equity price level. A $100/sh stock a year ago at static, maybe be really worth $92/sh in real time dollars.

Inflation is certainly a part of it, as is the Fed supposedly curtailing market stimulus.

[libertybele]

Shades of 2008. Ladies and Gentlmen...  we have put the seat belt signs on.

Dow is around 33,700, I think we'll eventually see the Dow around 15,000 - 16,000.

There's no positive news out there; inflation (which some say is being created by our own gov't), COVID, people refusing to work, civil unrest still in major cities, chaos at our border, Afghan refugees, and Uncle Sam is just starting to trample on our rights.

[Free Vulcan]

Market down 940. I think this is a quick correction and we'll see a slight rally tomorrow.

Get ready for October, which is usually the worst month for stocks.  I don't think things are looking good for the remainder of the year.

I can see it getting close to previous highs before it drops again.

We could be at a major top and this thing is going to play out over months.

[andy58-in-nh]

What is really roiling the markets is the fear the the Fed is going to taper its asset purchases. They will make that announcement likely tomorrow, maybe Wednesday. I doubt they will do anything of the sort, because this entire house of cards is built on government stimulus. 

[catfish1957]

I can see it getting close to previous highs before it drops again.

We could be at a major top and this thing is going to play out over months.

Yeah, there will be plenty of dead cats lurking by for awhile until the big event.  My money is on he the reference currency decoupling announcemnt.

[Free Vulcan]

One thing I see is that the VIX isn't going wild, so the market doesn't seem that scared at this point....for now.

[andy58-in-nh]

One thing I see is that the VIX isn't going wild, so the market doesn't seem that scared at this point....for now.

Yep. The market came back a bit at the EOD. 

[catfish1957]

Now this is scary and/or very strange.  I made a claim on Home No. 3 a little while back with my ancestral home which incurred substantial damage from Hurricane Laura. 

This morning I deposited the check for damages, and the teller told me that they would need to do a 7 day "hold" due to reoccuring NSF issues paid by Insurance Companies.  I laughed, but found out she was serious.   

Folks, I am talking about a very large insurance company.  And the lady said this is becoming common place. 

[catfish1957]

I posted this yesterday, and wanted to wonder if anyone else is seeing anything like this.  When top tier Insurance Companies are bouncing checks, something is awry.
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Now this is scary and/or very strange.  I made a claim on Home No. 3 a little while back with my ancestral abode which incurred substantial damage from Hurricane Laura. 

This morning I deposited the initial check for damages, and the teller told me that they would need to do a 7 day "hold" due to reoccuring NSF issues paid by Insurance Companies.  I laughed, but found out she was serious.   

Folks, I am talking about a very large insurance company.  And the lady said this is becoming common place.