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Madness at the NSE
Rank: Member Joined: 6/1/2017 Posts: 288
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lochaz-index wrote:lochaz-index wrote:Sufficiently Philanga....thropic wrote:September 2019 low of 2420 taken out. NSE20 prints 2410..... 50 points shy of March 2009 GFC low of 2360  Indeed. The GFC low is now the line in the sand. Supply was heavy for most of the big counters especially KCB. Only safcom looks likely to stabilize. After staging a decent recovery yesterday, Dow has dumped another 400 points at the open today...PPT and dip buyers are being bulldozed out of the way. If it closes today heavily in the red, that GFC low of 2360 on the NSE20 will be challenged tomorrow. Dow shed 1190 points by close of session! European markets also ended up heavily in the red. Will be very interesting to see whether the NSE20 holds on to the GFC low in light of the brutal sell-off. If the markets are pricing in a global recession for 2020 this will be very painful and steep downtrend. Yes,the Dow records its greatest one day point drop in history.Interesting price action today.S&P had its 200 SMA at 3050 and when the index hit this critical technical level,the Plunge Protection Team (PPT) pulled all the stops with new Fed repo liquidity and tried to buy back the market which almost went positive but it was a bull trap as the markets seriously flashed out and algos just went nuts and sold in huge volumes in the last 3 hours of trading.Bond yields hit a historical low yesterday. Now the Fed is under IMMENSE PRESSURE to cut rates and pump even more liquidity.Trump bullying the Fed to pump even more money but unlike prior market corrections caused by financial distress that was "resolved" by more money printing,the coronavirus is a black swan that cannot be mitigated by money printing.The only hope for this bubble market is that a vaccine or antivirus drug is found or as scientists hope the summer months in the Northern Hemisphere may subdue the virus. For those of us shorting this market its serious $$$$$$  everyday Contrarian Investor and Trader.Advocate of free markets,limited government interference in the economy and sound money
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Rank: Elder Joined: 12/4/2009 Posts: 10,804 Location: NAIROBI
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Angelica _ann wrote:Sufficiently Philanga....thropic wrote:Emilio's 1st term in office.....  Took over power when NSE20 was at 1357. It closed 2007 at 5445. The money we made in this Era, whah God bless Kibaki. It was superb, you buy a share today and in less than 2 years money has doubled. Those days we were comparing real estate prices vs stock price appreciation Wealth is built through a relatively simple equation
Wealth=Income + Investments - Lifestyle
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Rank: Chief Joined: 1/3/2007 Posts: 18,346 Location: Nairobi
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Ericsson wrote:Angelica _ann wrote:Sufficiently Philanga....thropic wrote:Emilio's 1st term in office..... Took over power when NSE20 was at 1357. It closed 2007 at 5445. The money we made in this Era, whah God bless Kibaki. It was superb, you buy a share today and in less than 2 years money has doubled. Those days we were comparing real estate prices vs stock price appreciation Both have tanked under Tano Tena! Greedy when others are fearful. Very fearful when others are greedy - to paraphrase Warren Buffett
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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Sufficiently Philanga....thropic wrote:lochaz-index wrote:Another heavy down day for the Dow. It has shed 1900 points in two days. Heavy PPT action at the open which was quickly overwhelmed by sellers. 10 yr UST touched a record low which doesn't portend well for the global economy in 2020. In view of the fact that trade fell in 2019 first time since 2009, could be pricing in recessions in most countries. What a rout!!!6% shave. Seems the PPT ran out of cash along the way  Dow futures have shed an extra 500 points so far. Extremely oversold territory. Presidential jawboning, the likelihood of a 75 bps cut, subsequent DXY weakness, Fed's repo action, promise of fiscal stimulus haven't stopped or slowed down this knife fall. Euro of all currencies has been on a monster rally for the past few days in most crosses. Asia showing signs of recovery after getting battered for two weeks. The whipsaw action is unreal. Will be fading my US shorts and turn my focus to Europe for the coming week. The main purpose of the stock market is to make fools of as many people as possible.
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Rank: Veteran Joined: 4/30/2010 Posts: 1,635
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Rank: Elder Joined: 9/23/2010 Posts: 2,225 Location: Sundowner,Amboseli
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lochaz-index wrote:Sufficiently Philanga....thropic wrote:lochaz-index wrote:Another heavy down day for the Dow. It has shed 1900 points in two days. Heavy PPT action at the open which was quickly overwhelmed by sellers. 10 yr UST touched a record low which doesn't portend well for the global economy in 2020. In view of the fact that trade fell in 2019 first time since 2009, could be pricing in recessions in most countries. What a rout!!!6% shave. Seems the PPT ran out of cash along the way Dow futures have shed an extra 500 points so far. Extremely oversold territory. Presidential jawboning, the likelihood of a 75 bps cut, subsequent DXY weakness, Fed's repo action, promise of fiscal stimulus haven't stopped or slowed down this knife fall. Euro of all currencies has been on a monster rally for the past few days in most crosses. Asia showing signs of recovery after getting battered for two weeks. The whipsaw action is unreal. Will be fading my US shorts and turn my focus to Europe for the coming week. Tonnes of cash made here by those who went in early for the shorts! @SufficientlyP
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Rank: Elder Joined: 9/23/2010 Posts: 2,225 Location: Sundowner,Amboseli
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As we watch our gains being swept away....well....those on the Longs.....how about some spiritual encouragement from The Old Rock... Hebrews 12:27: "This expression, Yet once more," denotes the removing of those things which can be shaken, as of created things, so that those things which cannot be shaken may remain." Lots of shaking going on ATM ... where is YOUR foundation ??? @SufficientlyP
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Rank: Elder Joined: 9/23/2010 Posts: 2,225 Location: Sundowner,Amboseli
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We are waiting for The Donald to wake up.....in store for us, after that huge 4 digit figure sell off on the Dow.......is a plethora of Tweets..This should keep us going through the fire. Closer home, today, we slide below 2360 at the NSE20  .........in the absence of any positive news on the Corona virus. @SufficientlyP
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Rank: Elder Joined: 9/23/2010 Posts: 2,225 Location: Sundowner,Amboseli
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Sufficiently Philanga....thropic wrote:Very interesting discussion going on here.
Other factors held constant(coronavirus impact and the US elections), the get out of jail meal will be served from early next month when Banks start reporting FY19.
Safcom, the bellwether stock has hit a dead end for now at the 33 levels, twice in a month, while member and simba have faced strong headwinds at the 55 level.
On the international scene, the 2020 US elections shall see the mother of all battles, battle royale, with china fielding its candidate, Mike Bloomberg to face off with Russia's 2016 candidate Donald Trump.
Remember the Dems played the Stock Market card in 2008 to get into power. Will they use Mike this time? Let's see how the Dow performs as we head into the elections.
The dollar has been gaining vs other currencies in the wake of this coranavirus threat and this, coupled with our weak economy saddled with huge debts and a possible referendum around the corner will have an adverse effect on the NSE.
Investor should consider selective entry in the many dips that will show up this year at the NSE.
This was Feb 21st. The Dow had closed at 29219 the day before. Didn't think it would be the last day post 29000 for the Dow  @SufficientlyP
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Rank: Veteran Joined: 9/18/2014 Posts: 1,127
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Sufficiently Philanga....thropic wrote:lochaz-index wrote:Sufficiently Philanga....thropic wrote:lochaz-index wrote:Another heavy down day for the Dow. It has shed 1900 points in two days. Heavy PPT action at the open which was quickly overwhelmed by sellers. 10 yr UST touched a record low which doesn't portend well for the global economy in 2020. In view of the fact that trade fell in 2019 first time since 2009, could be pricing in recessions in most countries. What a rout!!!6% shave. Seems the PPT ran out of cash along the way Dow futures have shed an extra 500 points so far. Extremely oversold territory. Presidential jawboning, the likelihood of a 75 bps cut, subsequent DXY weakness, Fed's repo action, promise of fiscal stimulus haven't stopped or slowed down this knife fall. Euro of all currencies has been on a monster rally for the past few days in most crosses. Asia showing signs of recovery after getting battered for two weeks. The whipsaw action is unreal. Will be fading my US shorts and turn my focus to Europe for the coming week. Tonnes of cash made here by those who went in early for the shorts! I thought this would be a constructive correction over several weeks/months. It turned out to be a crashing freight train. After the epic short squeeze on Tesla and the market in general this sell-off is most certainly welcome relief for short sellers. The weekly crash of circa 4000 points is the steepest since GFC. The main purpose of the stock market is to make fools of as many people as possible.
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