keep this is mind for Sunday night with the opening of chinas market, they are putting new rules in, this could bring down the indexes come Monday if China opens 2-3% on the downside which is certainly possible considering the run they have had....Im going long more YANG on this news if it dips.... today on this news, any way pay attention to this news, its pretty big going into Monday morning... New rules for trading Chinese stocks spooked European and U.S. markets on Friday. (Tweet This) Chinese exchanges and regulators announced Friday that they would crack down on over-the-counter margin trading and that they would allow fund managers to lend shares for short-selling. The type of stocks that investors can short sell will also be expanded soon to 1,100, from 900 currently. All of these moves could slow Chinese equities' wild run higher in recent months. Although the Shanghai Stock Exchange Composite Index rose 2.2 percent in Friday trading, Chinese after-hours stock futures fell about 5.5 percent in a response to the new regulations. Traders said U.S. and European markets were then in turn spooked by the move in those futures, and worries that the regulatory changes would be negative for the flow of recent money that has poured into Chinese exchanges. "The securities regulator is encouraging short-selling to institutional investors, and they are going to stop margin trading on OTC," Ioan Smith, managing director of KCG Europe, said. "Traders had to catch up with that news after the Bloomberg terminals came back online, and that's when we saw the falls in Europe." (Terminals were briefly down earlier Friday) Read MoreSee how US markets are trading here News of the Chinese changes followed comments from the China Securities Regulatory Commission indicating the agency expected future good fortunes for equities. Xiao Gang, who leads the CSRC, said investors should not think they are missing the boat if they had not yet invested in the Chinese stock market, which has surged around 70 percent since November. "So apparently they told us that the bull market in Chinese stocks was going to last, and then they pulled the rug? I is confused," Rhino Trading Partners' Michael Block (actually) wrote in a Friday note. He attributed a 14 point decline in S&P futures and a 4 percent decline in the iShares China Large-Cap exchange traded fund to this news. European shares also traded down in part because of the China news, Block added. "I didn't realize China would have such an effect on the U.S. and Europe," he wrote. "The [Shanghai Stock Exchange Composite Index] is up over 32% this year. The [S&P 500] is barely up over 2%. But c'est la vie, apparently." Although there has not been a perfect correlation between U.S. stocks and booming Chinese equities, any worries about the future of those markets would cause some doubts stateside, according to Jim Meyer, CEO of Tower Bridge Advisors. "The Chinese market has been a source of strength," he explained, so any decline could rattle equities traders. Read MoreForget China, this market is Asia's sweet spot Any global weakness from the Chinese regulatory changes should be temporary, however, said Adrian Day of Adrian Day Asset Management. Such a move was not unexpected, he said, given the fact that Chinese equities "have sort of gone crazy" with massive gains in recent months. And while the new rules may tamp down on those prices, the easily-spooked global markets should move along to the next focal point. "By next week the rest of the world will have forgotten about it," Day said. —Reuters contributed to this report.
wow~ I didn't notice that. Looks like the government wants to control the "temperature" of the market. Where did you see the article? Can you provide the website?
Respect is earned. The guy posts in huge fonts for no reason, calls random people "fools" on a daily basis, and blames Bernanke and the US fed for everything that bothers him in his life. To be quite honest, he seems mentally unstable.
when you become spoiled by market going up everyday, even one point drop in DOW is called a "PLUNGE" !!
Been quietly selling off my inverse etfs I bought recently this week, I still own quite a few more so even if the market falls my portfolio will still stay green, today however I had to take advantage of the "collapse" sold off 3 3X etfs SRTY at $25.93 SOXS at $11.77 and just sold YANG at $5.80 Im crossing my fingers that the markets don't open up 1%+ on the downside come monday morning because I will miss lots more profits in those 3 I just sold today.....
what a day it was, now the anticipation wait for Sunday when the futures open and china opens for trading, should be very interesting to see what happens.....if japan and china close down 2-3%+ and europe opens up down 2% expect a huge sell off into the monday opening of course followed by buying, we all know they won't let the markets close lower next week, they will keep the s$p up above 2068 as long as they can to keep the momentum going, especially ahead of all the earnings due out....next week is going to be super volatile.