China Stock Market Crash- One Finger in a Bursting Dam | July 9

The China stock market put a band-aid on a shot-gun wound. If you’re one of the day traders who was bidding into this mess yesterday, I have news for you. This isn’t an over-sold stock.

The China stock market crash and the NYSE halt should have you placing a stop-loss if you’re strategy is “the market always goes up…”

The FOMC minutes didn’t help and the SPY has tipped it’s hand. $205 is the line in the sand and $198 is on the horizon.

July 9 Stock Market Today: Map of the S&P 500

(click the map for a full view)

china stock market crash

Day Trading Game Plan: The SPY ETF Chart

The SPY  was a sea of red yesterday but can’t seem to shake the $205 area. A China relief rally will be temporary. It’s clear the sellers are in charge.

(click the chart for a full view)

china stock market crash

Stocks to Trade | Thursday July 9, 2015

Pete’s Notes:

  • Day trading was the place to be again yesterday. Clean trends for short-sellers.
  • AAPL bulls should be worried. It’s not the same competitive landscape and the bears are coming out. It’s no longer a buy and hold.

Interesting Chart Lessons:

UA | Under Armor, Inc.

We have been stalking UA in the morning Game Plan room. The stock showed great relative strength during yesterday’s carnage. Set your alert for a $86 breakout.

(click the chart for a full view)

china stock market crash

Earnings in play today > 1M avg shares:  fdo, pep, syrg

Bullish Ideas ATR/Volume/Price: HCA, VLO, NKE, FB, TWC

Bearish Ideas ATR/Volume/Price:  csiq, isis, sndk, clr, gmcr, wdc, fslr, uri, apa, lng, slb, mon, lnkd, mmm

Weak Stock Weak Close: aal, cnx, isis, sndk, trn, fslr, nbl, stx, cog, uri, gm, dvn, hun, coh, csx, pwr

Strong Stock Weak Close: MBLY, MPC,

Weak Stock Strong Close: bidu, qihu, vips

Strong Stock Strong Close:

20 day Breakdown: bhp, c, dlph, gm, mxim, rio, schw, txn, yum, zion

20 Day Breakout: HIMX, KIM

2x Normal Volume: dlph, amx, mgm, cpn, aa, swks, bhp, yum, txn, gm,

Watch List Longs: MO, DIS, TGT, LEN

Watch List Short: swn, hal, cop, slb, cvx, axp, bby, nem, dd, luv, orcl, ntap, lltc, txn, low, klac

Inside days: intc, fb, baba, yhoo, hpq, hal, qcom, wfc, ko, fit, xom, ms, mo, dow, dis, wmt, pep, aig, v, lly, aet, met, dhi, low mcd, stx, ea, crp, adbe, adsk, hd, wynn, ba, crm, cost

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China Stock Market Crash| Top Stock Market News

Key things to know about China’s market meltdown

Hong Kong (CNN)China’s stock market crash is now stretching into its third week, and share prices in Shanghai have lost a third of their value since mid-June.

The country’s market watchdog has warned of a “mood of panic.” And some say the crash might have graver implications for the world economy than the crisis in Greece.

Here’s what you need to know to make sense of what’s happening:

So why are stocks falling?

Earlier this year, China’s stock market was displaying many of the classic warning signs of a bubble.

china stock market crash

Grandmas, cab drivers and college kids were all making small fortunes in a frenzy of “chao gu” or stir-frying stocks — Chinese slang for trading.

And the stock rally came at a time when the wider economy was slowing, puzzling many financial analysts. But now they say gravity is taking effect.

“China’s stock market had become detached from the reality of China’s own economy, and appallingly overvalued,” Patrick Chovanec, managing director at Silvercrest Asset Management, posted on Twitter.

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Opinion: China’s stock-market crash is just beginning

Since the Shanghai Composite index dropped from a 52-week high around 5,178 on June 12, it’s been downhill all the way.

In just three weeks, stocks listed on mainland China’s most prominent exchange tumbled 30% from their seven-year highs. The even more speculative ChiNext Index has lost 42% of its value over 21 days.

Investors and traders who piled into Chinese shares over the past year, causing Shanghai to rise 150% and other markets to catapult even more dramatically, faced margin calls on their highly leveraged positions and started selling with both hands and both feet.

It was the biggest rout in this volatile market since 1992, and it prompted the Chinese government to take strong measures.

Last week, the Bank of China cut short-term interest rates for the fourth time this year. Regulators relaxed margin requirements and cracked down on short sellers, while state-run media tried to calm jittery investors with happy talk. That did little to stanch the hemorrhage.

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Chinese stock markets continue to nosedive as regulator warns of panic

Main markets open sharply down as nearly 700 companies request their shares be suspended in unprecedented move

Investors sit in front of a screen showing market movements in a stock firm in Hangzhou, eastern China’s Zhejiang province on July 8, 2015.
Unlike most other stock markets, where investors are mostly institutional investors, in China, 80% of investors are small retail investors. Photograph: STR/AFP/Getty Images

After 10 minutes of morning trading a wave of listed companies’ shares had been suspended across China’s two stock markets after they dropped by the daily limit of 10%.

The China Securities Regulatory Commission ruled that controlling shareholders and managers holding more than 5% of a company’s shares could not reduce their holdings for six months, in an attempt to maintain stability in the market.

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bob curran Reply


    Pete Renzulli Reply

    thank you Bob
    Have a great day!

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