Market related post in response to a market related tweet by President trump ... I agree with President trump ... he should be impeached immediately!
A minor detail though: The markets were down - 20,00 % from the ATH that day. Currently, we're 'only' down 6,9 % ATH to bottom in RTH. Yesterday was 'brutal' with a huge gap down and zero counter movement from the open. I think this minor detail makes a big difference. Unless we get a huge up day similar to 12/26/2018 today - I'm convinced we have considerable down side left.
August 2015 might be a more apt comparison. China pulled this same crap and devalued its currency out of the blue. I remember it well unfortunately. I had a sizeable position in Caterpillar and got absolutely hammered. Here's SPY from that time-frame:
i wouldnt be suprised if it went to around 20.00 or lower but i am thinking more like over night numbers so around 50's would be a reasonable target.
they are going to take vix down soon , so it could mean the change in momentum, they could restrict the ES on pivot support 60.00 will turn interesting.
2015 was likely to take some pressure off from defending non stop, they moved band... This one was tapping out, moved to 6.92 cause they are bust it seems and having hard time refinancing Eurodollars, they lost control... They had to sell Yuan bonds in HK to prop up Yuan ON. In May they were saying it's never passing 7, and it almost touched 7.15 last night until help from HK came along with fixing HSBC and PBOC rumours floating around... PBOC has been borrowing hundreds of billions USD from HSBC, Flint fired when board discovered. More news will come out within few days for sure