Tag Archives: NASDAQ

Business, Crypto, Observation, Stock Market

The September Swoon has Started: Nasdaq drops 2.83%, collapse blamed on bond rate rise

Above: Photo Collage / Lynxotic

Bond jump should have been seen coming, yet the reaction is nevertheless a big rush to the exits

In what some are calling a Taper Tantrum, the markets dropped with a sense of purpose today, with little bounce after the close in the futures market. With Fed rate hikes now a certainty, inflation concerns real, and bond yields spiking today, there were plenty of things to point to as catalysts.

This could be, and this is extremely likely regardless of what endless permanent-bull commentators would have you believe, the start of a tough two months, with late September and October being known as a very dangerous time in markets, especially whey they exhibit pre-crash signs and warnings.

Insane valuations that have preceded past September / October disasters are back

It’s unbelievable that the fall of 2008, when the financial crisis came to a head with the Lehman Brothers collapse, was 13 years ago, and the prior peak in November 2007 was a full 14 years.

I guess we can observe that we now have the iPhone 13, with the iPhone “1” which was just called “iPhone” at the time, has been marking the time with yearly iterations, not always named in sequence:

iPhone: June 29, 2007

iPhone 3G: July 11, 2008

iPhone 3GS: June 19, 2009

iPhone 4: June 24, 2010

iPhone 4S: October 14, 2011

iPhone 5: September 21, 2012

iPhone 5S & 5C: September 20, 2013

iPhone 6 & 6 Plus: September 19, 2014

iPhone 6S & 6S Plus: September 19, 2015

iPhone 7 & 7 Plus: September 16, 2016

iPhone 8 & 8 Plus: September 22, 2017

iPhone XS, XS Max: September 21, 2018

iPhone 11, Pro, Pro Max: September 20, 2019

iPhone 12, Mini, Pro, Pro Max: October 23, 2020

iPhone 13, Mini, Pro, Pro Max, September 24, 2021

And during all these years, for the most part the artificially inflated Fed “bubble of everything” has continued.

Here is a disturbing chart, courtesy of Elliott wave International at Elliottwave.com:

This behavior, seen across nearly all markets since extreme measures were taken to respond when the March 2020 pandemic crash occurred, has been building to a crescendo. And today was a tiny pin-prick that could augur ill for October.

What this has led to, naturally, is an overvaluation beyond anything seen in modern times, perhaps 500 years. The previous all-time-peak for overvalued stocks (S&P) was in March 2000. August 2021 is far beyond that peak and likely will stand as the most overvalued moment for decades.

Above: photo courtesy of Elliott Wave International

Unless, that is, somehow the insane valuations are pushed even higher. Which is unlikely, but not impossible, given the state of delusional euphoria that pervades the financial markets.

Many 2021 characteristics, such as the Crypto, NFT frenzy will be seen in a similar light to the tech stocks in 2000 or Real estate in 2007

There’s a sense that it is normal for bored apes NFTs to experience a multimillion dollar bidding wars, or for crypto alt coins with dog mascots to explode 10,000% or more during this, possibly final phase, of what has been called the “everything bubble”.

And why not? If you bought and held almost anything in March 2009 or again at the bottom of the crash on March 16, 2020, then you have seen nearly continuous gains that you’d be eager to risk on, well, anything.

And if you were 10 years old in the year 2000, you’d not have known about NASDAQ drops that take around 13 years to regain what was lost after a 1 year bear market, so why worry?

Perhaps the Fed and the markets seemingly infinite ability to expand and inflate will go on for years. Or the next bear, possibly the one that already kicked off today, and will accelerate into October, is one to take seriously.

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‘They should be worried’: will Lina Khan & the FTC take down big tech giants?

Photo by Annie Spratt on Unsplash



There’s a storm brewing and tech mega-monsters like Amazon, Google & Facebook know it

Practically since the day that Lina M. Kahn was appointed chair of the FTC, big tech giants have shown that they are worried. Both Amazon and Facebook filed suits asking that she recuse herself almost immediately.

Khan’s famous 2017 article; “Amazon’s Antitrust Paradox“, published in the Yale Law Journal was both the obvious initial catalyst to her becoming chair of the FTC and also Amazon being unhappy that she would be at the helm of the FTC while antitrust actions are being brought against them.

The idea of removing her would have obvious appeal for those that fear her dedication to a new antitrust stance at the FTC, one that no longer allows digital behemoths to skate, monopolize and grow unchecked. But there is likely little chance that they can get her off their metaphorical backs that easily.

As per the Guardian: “Khan does not have any conflicts of interest under federal ethics laws, which typically apply to financial investments or employment history, and the requests [for her recusal] are not likely to go far.”

Read at:

The Guardian

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Breaking News, Business, Economics, Stock Market

Market Drops on Trade War Escalation: Dow Closes Down 767

photo collage / Lynxotic

Does over 925 points lost by the Dow Jones Industrial Average intraday qualify as a Market Crash? With the NASDAQ down over 4% and Bonds at record low yields, and the Chinese Yuan breaking the psychologically important 7 to 1 barrier against the dollar, it appears the Trade War is getting serious indeed. The Dow closed for the day down 767 points.

After Trump’s now infamous tweet, late last week, that set markets in the US tumbling, now, China’s immediate retaliation plans have been revealed, pushing the markets into a tailspin.

Lowering the currency exchange rate has the effect of countering the tariff by increasing the number of yuan generated by dollar denominated exports. Naturally there are more complex peripheral and ancillary effects that will be debated by economists until the end of time. The People’s Bank, for what it’s worth, claimed that the drop was “driven and determined” by market forces.<p>The yuan is now at its lowest point relative to the dollar since 2008.

The NASDAQ and tech stocks are now down for the sixth straight day. A man who at his inauguration spoke of “the end of American carnage”, and who touts his ability to conjure up stock market gains is now facing a serious problem, in addition to his legal and political woes.

Dow Drops 925 Intraday on Trump’s Tariffs and Yuan Devaluation

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