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Adden

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U.S. Stocks Fall After Chinese Markets Plummet
#22735284 - 01/04/16 10:18 AM (8 years, 26 days ago) |
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U.S. Stocks Fall After Chinese Markets Plummet Losses in China were bad enough to close stock markets for the day
Last year, steep declines in Chinese stocks were periodically followed by dramatic, if less severe, declines in U.S. and European stocks.
In 2016's first day of trading, it's more of the same.
Chinese market chaos rooted in long-held but sporadically-acted-on fears of economic malaise, negative U.S. manufacturing data and instability in the Middle East combined to create an unfortunate grab bag of reasons for traders to sell.
In the U.S., the S&P 500 index is down a little over 2 percent Monday morning. In London, the FTSE 100 index is down by a similar amount, while the German DAX index is down 4 percent. The Japanese Nikkei index fell 3.06 percent.
Those declines, while sharp, are relatively minor compared to the fall in Chinese markets that seems to have precipitated the global decline: The CSI 100 index fell 5 percent, triggering a temporary halt to trading under newly implemented rules intended to prop up the country's wobbly markets. When trading resumed, the market quickly fell another 2 percent and trading was suspended under the same rules, which limit a day's losses to 7 percent.
Making matters worse -- or at least not providing much solace for traders -- are data released this morning showing that U.S. manufacturing continued to decline in December. Additionally, tensions between Saudi Arabia and Iran escalated over the weekend after the Saudi government executed a prominent Shiite cleric, the denomination of Islam most common in Iran.
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Adden

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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: Adden]
#22735292 - 01/04/16 10:21 AM (8 years, 26 days ago) |
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Dow fell 450 points by noon, the sharpest opening drop in 84 years.
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GreenRabbit
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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: Adden]
#22735329 - 01/04/16 10:30 AM (8 years, 26 days ago) |
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Ye, read aboot this.
I only own one stock right now. ORB - Orbital Sciences. They only fell 1%. Whenever there is a drop, they drop less; when there is a gain, they gain more. Great company for long term investments.
What industries do you prefer?
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Adden

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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: GreenRabbit]
#22735343 - 01/04/16 10:33 AM (8 years, 26 days ago) |
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None. I'm a metals guy. Traders make more money on the reg, I like hoarding and cleaning up large sums. Only problem is my invested money isn't making more money on its own up until (and if) the payout comes.
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Adden

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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: Adden]
#22735353 - 01/04/16 10:37 AM (8 years, 26 days ago) |
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SEOUL, South Korea (AP) — China's Shanghai index has plunged nearly 7 percent.
The Shanghai Composite Index dived 6.9 percent to 3,296.66 on Monday, the first trading day of 2016.
The index was at the lowest level in nearly three months.
The official Xinhua News Agency said China halted trading on the Shanghai and Shenzhen stock markets after shares tumbled.
Poor Chinese manufacturing data and escalating tensions in the Middle East weighed on Asian markets. Oil prices rose.
Japan's Nikkei 225 tumbled more than 3 percent while Hong Kong's Hang Seng retreated about 3 percent.
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Ahab McBathsalts
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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: Adden]
#22735735 - 01/04/16 12:36 PM (8 years, 25 days ago) |
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Canadian bonds, hedged in USD.
-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
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Adden

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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: Ahab McBathsalts]
#22735937 - 01/04/16 02:04 PM (8 years, 25 days ago) |
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It's crossed my mind and I've been following your posts here about your Money Matters. Problem being I don't know enough, or how to even begin to get started.
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GreenRabbit
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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: Adden]
#22736020 - 01/04/16 02:37 PM (8 years, 25 days ago) |
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Hehe, like I was saying. Nasdaq ended up down 2%. ORB down -0.06%.
Quote:
Dys said: Traders make more money on the reg
Some, not most... It's also far more stressful.
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Ahab McBathsalts
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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: Adden]
#22736063 - 01/04/16 02:56 PM (8 years, 25 days ago) |
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Quote:
Dys said: It's crossed my mind and I've been following your posts here about your Money Matters. Problem being I don't know enough, or how to even begin to get started.
It would be the XLB (longer dated, although it might trade on the TSE) , and then for every $7100* you should buy one put on the FXC chain for the date that corresponds best to when you think you will sell. Likely 6 to 9 months, and the strike price should be close to the money, like $71, or $70.
I am definitely not a technical trader, but have been proficient in the longer term macro trades.
*7100, or $10,000. I'm working from CAD, so it seems backwards to me.
-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
Edited by Ahab McBathsalts (01/04/16 03:12 PM)
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Ahab McBathsalts
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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: Ahab McBathsalts]
#22736518 - 01/04/16 05:06 PM (8 years, 25 days ago) |
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Ok, I did some math for you.
USD CAD Yield Today 0.7176 1 US Yield 5 months US $ Interest 5 month total with 423 shares XLB 16.9855 23.67 0.0364 0.618275549 0.257614812 109.2 FXC 71.16 99.1638796 $7,200 $10,033.44 16.985592 Shares 423.8886699
With $7200 (USD) in the XLB (Canadian Long term bonds) will get you 423 shares at today's prices. You would then buy one put contract for the June 16th expiry @ $70 for the FXC for about $100. The interest you receive from the XLB will pay for the currency hedge. That gives you a pure play for price appreciation of Canadian bonds when they cut interest rates.
I would probably try to find a September expiry for the FXC, but thats the way the math works for June. You would probably want to look up when all the Bank of Canada meetings are as well and use that in your estimation of an interest cut.
Bah, all the spacing looks like shit.
-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
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Adden

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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: Ahab McBathsalts]
#22745669 - 01/06/16 07:52 PM (8 years, 23 days ago) |
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China halted trading again.
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Ahab McBathsalts
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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: Adden]
#22745674 - 01/06/16 07:53 PM (8 years, 23 days ago) |
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yeah, I doubled up on SPY puts in the last hour of trading today. I'm stoked as fuck to collect some cheque.
-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
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Ahab McBathsalts
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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: Ahab McBathsalts]
#22745709 - 01/06/16 08:00 PM (8 years, 23 days ago) |
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The XLB is up like .75% in 2 days which is pretty decent all things considered for a bond. I threw some money into XLB, I think its up like 4.5% since the end of November.
-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
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Ahab McBathsalts
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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: Ahab McBathsalts]
#22747688 - 01/07/16 09:56 AM (8 years, 23 days ago) |
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China has suspended it circuit program after 2 triggers this week. Tomorrow it might just tank, or they will prop it up some other way other than shutting the trading off.
-------------------- "Nobody exists on purpose. Nobody belongs anywhere. Everybody's going to die."
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Adden

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Re: U.S. Stocks Fall After Chinese Markets Plummet [Re: Ahab McBathsalts]
#22747703 - 01/07/16 10:01 AM (8 years, 23 days ago) |
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I don't have any high hopes the rest of this week and wouldn't be surprised if it shit the bed.
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