http://finance.yahoo.com/intlindices

http://money.cnn.com/markets/morning_call/










http://www.kitco.com

Energy futures

Currencies/Au/Ag

A lovely little panic selloff on open but now the dippers are getting involved. All Ords -2.5% with major damage in the sectors. IT is down the most, -4.4% followed by Materials -3.5% and Financials -3%. Healthcare is down the least, -1.3%.

The two leading miners are seeing mucho selling: BHP -4% and RIO -3.3%. Like yesterday, the golds are faring better: Newcrest +0.1% and Newmont -1.6%.

Oils way down: Woodside -2.5% and Santos -3.5%.

Asia getting a hammering: Sth Korea -3.7%, Singers -3.6%, Nikkers -2.6%.

Good morning Aussiebear,
Thought you or anyone else might like to see this 2 minute interview of Wilber Ross yesterday on the Closing Bell with Maria. The segment was called "Betting on Subprime", but Ross tells it straight and shares what he thinks is coming; very Stoolish viewpoints from a serious, big time, no BS self funder.

[url=http://www.CNB C.com/id/15838421/site/14081545/#]
(remove the space in the initials).

Maybe one day Lee will get the invite. Yikes !

Dippers were washed away today in a deluge of selling. Treasurer Peter Costello hit the airwaves with soothing words which was exactly the signal needed to up the ante: "If the Treasurer's talking about it, it must be worse than we thought".

All Ords closed -3.6% with no sector being seen as a safe haven. IT led the way, -6.6%, followed by Materials -5% and Energy -4.8%. Healthcare had the least drop, still a fairly hefty -1.8%.

BHP and RIO were killed although in the context of the daily chart it's pretty much of a blip; BHP -5.5% and RIO -4%. Lesser star, Zinifex, closed -8.3%. Golds were sucked into the vortex: Newcrest -3.4% and Newmont -1.2%.

Oils are looking bearish chartwise at this stage of the game: Woodside -4.4% and Santos -7.3%.

Oz was one of the worst performers today although we were pipped at the post by Sth Korea, -4.2%. In the others, Singers -3.4%, Honkers -2.9% and Nikkers -2.4% and of course many Asian markets are still open.

Over to UK/Europe:







http://finance.yahoo.com/intlindices?e=europe

Hmmm seems like I don't have the right programme to view that...did download what I thought was needed but no go

All Ords appears to be forming a classic head & shoulders top. Is this the end of the Great Australian bool Market?

Bank of Japan, RBA Boost Funds to Ease Credit Crunch

Aug. 10 (Bloomberg) -- The Bank of Japan added 1 trillion yen ($8.5 billion) to the financial system and the Reserve Bank of Australia lent the most in more than three years, joining U.S. and European central banks in responding to a credit crunch.

The Japanese central bank's largest provision of funds since June 29, helped bring the overnight call loan rate to 0.5 percent after it climbed to a four-week high of 0.56 percent, according to Tokyo Tanshi Co. Australia's central bank loaned A$4.95 billion ($4.2 billion), the most since at least January 2003. Central banks in the Philippines, Indonesia and South Korea said they are ready to provide more cash if required.

What does a junky do when he badly needs a fix?

"``Funding from the ECB yesterday must have drawn firms into overbidding to access the cheap cash to lend on at even healthier-than-normal spreads.''"

He gets overdosed! I say let them sweat it out in pain for their own protection!

http://www.bloomberg.com/apps/news?pid=206...QZmQ&refer=home

Anudder 60Bi fix

"``This liquidity-providing fine-tuning operation follows up on the operation conducted yesterday and aims to assure orderly conditions in the euro money market,'' the Frankfurt-based ECB said in a statement earlier today. The bank received 62 bids worth 110.035 billion euros in the so-called ``fine-tuning operation.''"

In related newz euro markets make a small correction of over -2%, still grossly overvalued at these levels.

Most hard hit sector? Basic resources, down over 4% @423


Second place? Banksters down almost 4% @ 427


Currently trading at March and December lows. June '06 lows just above 360, that's still 15% below current levels. Grossly overvalued indeed.

While world markets are suffering from a liquidity rout, Chinese Schwang High made a huge -0.1% correction. Chinese bureaucrats probably think their stocks are worth more, even now after the total market cap equaled the country's GDP. This ratio has touched 200% in the past of other countries like the US who's average in the last decades is about 150%. But I don't know about the market participation of companies in China compared to the US (total publicly traded companies compared to privately held), so it's hard to make much of this ratio.

This is the direct link, http://www.cnbc.com/id/15840232?video=461490509

But it won't play for me on Mac.

Futures collapsing!!
YM -150
ES -19

Another monster gap down...

Are you jumping on the short bandwagon madness or is it to risky to chase the weakness?

Dollar must be rallying because Gold took a 7 dollar plunge.

It's nevah too late to short.
You don't have to short the indexes...
You can probably find weaker plays on individual stocks.

For example, i put up CAT yesterday. It has a perfect head and shoulder pattern. If the neckline breaks. Short it to hell baby!

K-Wave was right. This next move down was going to be a good one. When Doc, Leewhee and the Ribbon man on all on the same boat. Don't fade these guys.

I just went balls to the walls long on ES at 1439.75...

Stop if we take out 1435....
The low on the september contract was last friday at 1437....

Trade Safe.

Analcysts on Gloomberg are the most bearish on oil since May 2005 ! Sometimes there's a lag between a bearish peak and a bottom. Never trade based solely on one indicator, but the boolish level at the last high was so low that it's hard to believe there will be a very significant correction (commodity style correction), even though the XLE corrected anticipating the correction in Oil as usual.

RISE NEUTRAL FALL
11 5 23

In the midst of the current liquidation Oil has lost almost 10% from its peak.

A gutsy move. I tried to catch a botomn yesterday and got stopped out at 1446. Now I am thinking it may be time to ride it down.

I'm simply playing support.
ES bounced of off 1437.75 twice last week.

If i'm wrong, i lose about 5 points.

Madness, do your stops on futures get filled accurately, or do you have to figure a +/- spread on the fill for your VAR.

Liquidity has been good these days.
Spreads are only .25.

I just got stopped out at 1434.50

What's the plan now madness. Buy lower or reverse & go short?

Watch....and stay in cash for now.

[attachmentid=87185]

Blame the "uptick rule" meme now being spread. Not the black boxes or the 10:1 leverage hedgefunds. Not the collapsing credit market. Not the ca-gillion new levered EFTs. Nope, it's the "uptick rule".

Lets take a look at panic support levels just in case.

The German DASH30 , gaped under the 200 WMA, still above the 200 SMA (7085), and obvious round number / Feb top support around 7000. The top was some measly 20 points above '00's top, never closed above 00's intraday highs though it made a new intraday high.
[attachmentid=87187]

The French CRAC40, obvious support at round number / Feb May'06 top 5300 or an undercut to 5250. It's already trading under the usual 200/50 MA's, and below YTD line.
[attachmentid=87186]

Footsie is already undercutting May '06 nominal top.

im getting long for the day QLD. tight stop just for a bounce play.

Pigsters always find a scapegoat to deter people from the fact that they are cashing in big on all of this. In real estate it was subprime - which they used to inflate the bubble even further and made big bucks slicing and dicing this stuff in to CDO's and assorted "structures". And now the media blames subprime and poor people trying to get a home they can't afford for the housing collapse, it's sick.
Now they make big bucks with the elimination of the uptick rule and are already planning the field to make it the scape goat of a very healthy correction that is long due.

Anything throwing off yield & not in banking/finance is getting by relatively untouched. Most of my longs are doing just fine -- much to my suprise . In addition it is allowing me to grab additional income by writing calls that will expire worthless if we continue down.....sweet

Looks like our friend "Goldilocks economy" is about to get gang-raped....AGAIN

Thanks for the link FauxCaster. The video was reduced to a couple of stills but audio came thru loud and clear...

in most indeces i watch we are not even at the 200 day MA and i dont know not ONE which actually trades below the 200 day MA.

One should be very carefull these days, no doubt, but we have to see how the markets behave when we touch the 200 day MA. Maybe it will be just another buy opportunity, who knows.

But after all, the 100 billion pump by the ECB yesterday is very VERY fishy.

Sometimes the best postion is CASH.

Inside trader of the century....never fade this guy.....CFC down 17% in the premarket

fx,

Is the carry-trade unwinding from your point of view?

Hey FxFox, how u doing?

The Dax is under the 200WMA, CAC is under everything, stoxx 50 and Eurostoxx 600 under the 200SMA and WMA, FTSE under everything. Which euro broads do you watch?

You better call your Boomberg representative and tell them to stop messing with your terminal. Oh, and add 60 Euro Bi's to yesterdays injection... got to keep up with these things.

Wow - Fed 19b over the w/e repo - all mbs collateral.

Statement that they stand ready to provide further assistance today.

GOLD just took off 11 bucks from the lows.

"Everything is ok, there's more from where that came from. Bears are a long way from this market!"

Another pig comes in to the roaster:

"Deutsche Bank AG's DWS unit, Germany's biggest mutual fund company, said the value of one of its investment funds has fallen by 30 percent since the end of July as subprime mortgage losses roiled credit markets.

Assets in the DWS ABS Fund fell to 2.1 billion euros ($2.9 billion) from 3 billion euros as clients pulled money and investments lost value"

http://www.bloomberg.com/apps/news?pid=206...1GT0&refer=home

30% in 7 trading days? Is that alot?

I tried to play this game this week and it turned out to be a loss of tremendous shorting opportunity.

never seen this before... only used
Mortgage-Backed Collateral


DJ Fed Accepts $19 Bln In 3-Day RPs

Type of transaction: 3-Day RPs
Total accepted: $19 Bln
Total submitted: $31.2 Bln

Mortgage-Backed Collateral Operations
Total accepted: $19 Bln
Total submitted: $31.2 Bln
Stop-Out Rate: 5.15%
Weighted Average: 5.24%
High-rate submitted: 5.35%
Low-rate submitted: 4%

(Data was provided by the New York Federal Reserve Bank).

I shake my head in wonderment. The reason for all this emergency pumping is that we are in the beginning stages of the meltdown of the credit bubble, a credit crunch, and a liquidity crisis. This central bank cash is desperately needed by the banks to enable them to carry all the paper that they are suddenly not able to liquidate in the market. This is NOT boolish. It's a crash. The Fed also tried to pump things up in the 1929 crash to no avail. Go read Kindlebarger's Manias, Panics, and Crashes. Dense, boring, obtuse, but it's all there in all the gory detail.

And ream member. There's no such things a support in a bear market.



Looks like the inverse of 78.6%. A 78.6% correx would have it down in the 800s, right?

What a pleasant morning. Woke up early got to watch Mark Faber on Bloomberg. Pure enjoyment listening to him describe the current recession and the beginning of a bear market. Truth and intelligence was a refreshing breakfast compared to usual morning bowl of fruity pebbles.

Also liked some guy named Mark Gilbert who compared the subprime mess to boiling a frog. You know, if you put a frog in a pot and slowly turn up the heat, it doesn't realize its dying.

Went short again yesterday and looks like they're going to stick. Will look to add any bounce (if I get that lucky). This should be the start of the second leg down.

OOOOOOOO-FAAAAAAA

Looking at the shippers today.....CRAZY yields......(NAT, VLCCF, DHT....etc)

I've been saying that if the Fed cuts, the market would take that as a sign that the shit is hitting the fan and would sell off 1000 points immediately. Sort of the same thing with the $130 billion injection by the EUCB yesterday. That's exactly how the market read it. And it's true. This is a real liquidity crisis folks. The credit markets have simply shut down as investors wake up to the realization that they can't get their money back.

I have been saying for years that the US real estate bubble would lead to a world wide financial collapse. In my writings over the past year or so, I have even targeting the second half of 2007 as the beginning of the unraveling.

We are about to find out if those forecasts were correct. In the meantime, had you been a subscriber to the Wall Street Examiner Professional Edition for the past few years, you wouldn't be the least bit surprised by what we are now witnessing. So if you haven't done so, make the small investment in protecting your capital that will prepare you equally well for the future. Be ready for the next wave of shorts. Be ready for the time when it's time to cover your shorts and go long again. Subscribe to the Wall Street Examiner Professional Edition RIGHT NOW and keep up with all the unfolding gory details as they happen.

Why is Paulson always looking up and off to his right in his interviews? Does anyone have on of those eye-movement psychological analysis charts?

EDIT:
here's a chart
http://www.blifaloo.com/info/lies_eyes.php

Looks like he's telling the truth! "Up and to the Right Indicates: Visually Remembered Images"

RE-EDIT:
I was reading the chart wrong. He is looking up and to HIS right, so according to the chart that is
"Up and to the Left Indicates: Visually Constructed Images (Vc)" -- ie, he's making things up.

[quote=DrStool,Aug 10 2007, 08:00 AM]
[quote=Brisbane Bear,Aug 9 2007, 11:49 PM]my gut instinct is to go long.

[/quote]

I shake my head in wonderment. The reason for all this emergency pumping is that we are in the beginning stages of the meltdown of the credit bubble, a credit crunch, and a liquidity crisis. This central bank cash is desperately needed by the banks to enable them to carry all the paper that they are suddenly not able to liquidate in the market. This is NOT boolish. It's a crash. The Fed also tried to pump things up in the 1929 crash to no avail. Go read Kindlebarger's Manias, Panics, and Crashes. Dense, boring, obtuse, but it's all there in all the gory detail.

And ream member. There's no such things a support in a bear market.

[quote=LeeWhee,Aug 10 2007, 12:56 AM]
[/quote]

Amen brother! Anybody wondering what a crash feels like should be taking notes. We are in a death spiral.

Doc did just that. I learned a lot about importance of mortgage markets from Doc.

Cramer gets his wish: the discount window is open.