DJIA, NYSE, S&P = CRASH!!!

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The morg down 2.5 prebell

 

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[oyarde]

I will clean up on adult diapers for sure .

 

[Madison320]

It's going to be really annoying when the conservative media and republican politicians finally notice the falling economic conditions. They're going to act like they've been warning about it all along, despite the fact they they're part of the problem and had no idea it was coming.

 

[puppetmaster]

Here come negative interest rates

 

[r3volution 3.0]

Here come negative interest rates

That idea's being rapidly discredited (I mean in establishment circles, obviously it was already discredited among sane economists).

I was watching Bloomberg late last night, covering the European carnage, and a top analyst from Morgan Stanley (or JP Morgan?) was talking about this.

He pointed out (correctly) that NIRP in Japan and now Sweden has been an absolute failure, if the goal was to devalue those currencies.

On announcement of NIRP, the yen/krona plunged, but then came right back and even strengthened relative their original position.

Why? His explanation (which makes sense to me) was that while NIRP made investing in a country less attractive, creating selling pressure on the currency, it simultaneously weakened the banks, which caused a risk-off move out of stocks et al and into government bonds, thus pushing the currency right back up. Here's the important part: this guy, who is very much plugged into the banking elite, suggested that the next step should be for CBs to start monetizing private assets (i.e. stocks and corporate bonds, instead of government bonds). Unfortunately, as I think we all know, the PTB aren't going to allow this malinvestment to liquidate, they're going to keep subsidizing it, and if they can't push traditional QE much further, and if NIRP doesn't achieve their goals, I'm sure they will start monetizing private assets (this has already been happening on a small scale in some countries).

 

[wizardwatson]

Here come negative interest rates

I don't know, last I heard Yellen was floating propaganda about "not sure about legality of negative interest rates".

Don't know if it will happen here, surely not soon I would imagine.

Interesting day though. I believe this is the first day we've closed below the Aug 25th low of 15666.

 

[r3volution 3.0]

I believe this is the first day we've closed below the Aug 25th low of 15666.

Yup, been watching that for a long time.

...look out below.

 

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[h=1]Stock Market Crash: This Chart Shows Big Losses Ahead for Equities[/h] [h=2]

Here’s How a Stock Market Crash Could Happen[/h] If you are bullish on equities, it may be time to pause and reflect. We could be headed for a stock market crash.
As dire as it may sound, 2016 could be the year when the stock market sees massive losses—just like 2008 and 2009.
Going forward, remember the most basic principle of technical analysis: the trend is your friend until it’s broken. Sadly, as it stands, key stock indices have broken below the trend that began in 2009.
Please see the chart below of the S&P 500 and pay close attention to the circled area.
The S&P 500 has broken below the trend that began in 2009. As this is happening, we see the volume surging (circled area at the bottom). Saying the least, volume increasing as the long-term trend breaks is something that should be taken very seriously. It says that investors are quickly running for the exits—and they are nervous.

​

Chart courtesy of [url]www.StockCharts.com[/URL]​

If this wasn’t enough to convince you, then look at how investors’ bets against the stock markets are mounting higher each day.
Take a look at the chart below. It shows the amount of assets in the bearish stock market funds. The higher the assets in the bearish funds, the more pessimistic are investors.

​

Chart courtesy of [url]www.StockCharts.com[/URL]​

According to the chart above, it’s clear that bearish stock funds have been gaining in popularity since September. In other words, investors are turning more pessimistic. Mind you, assets in these funds are at their highest level since 2012!
I begin with a question: can you point to one thing that has lead to many of the biggest stock market crashes in history? I can—the combination of nervousness, fear, and panic among investors.
With this said, those who follow the stock market on a regular basis know it well. The moves we have seen since the beginning of 2016 are not typical profit-taking moves. They should be taken seriously because they are backed by poor fundamentals and investor nervousness.
Now, if we continue to see more losses, you have to ask what will investors who bought in early 2014 do. In the first few weeks of 2016, stock markets have wiped out all the gains made since late 2014. Will investors hold on to their position or sell? I would not be surprised if they sell and run for the exits.
From there, I wouldn’t be shocked to see panic kick in. You see, all of a sudden, investors will realize that they haven’t made any money and now their wealth is declining. This is where extreme selling could come in play and we could see big losses in a short period.
The big question: how does one protect him or herself from a stock market crash?
Go back to basics: trade management. Cutting losses and taking profits off the table helps, too. At the same time, it builds up your cash position at hand. After the selling is over, investors could find great opportunities that could generate big returns.

http://www.profitconfidential.com/s...is-chart-shows-big-losses-ahead-for-equities/

 

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http://money.cnn.com/2016/02/11/investing/oil-price-crash/

[h=2]The dramatic crash in oil prices has returned with a vengeance.[/h] U.S. crude futures dropped as much as 5% on Thursday, driving prices below $27 for the second time in recent weeks. It settled at $26.21, the lowest point since 2003.
The steady decline is creating a widespread headache for financial markets. It's causing energy companies' profits to plunge, raising worries about the prospect of bankruptcies in the oil sector and spooking investors about global growth. In total, crude oil has plunged an incredible 75% from its June 2014 peak of almost $108.
Related: Stocks sink following oil crash
U.S. stock markets followed by declining sharply. The Dow fell as much as 400-plus points and the Nasdaq moved closer to a bear market, or 20% below its most recent high point.
World markets also suffered. In Asia the Hang Seng (HSI) dropped nearly 4% Thursday, while the Nikkei (N225) shed 2.3%. Major indexes in Europe were 1.5% to 3% lower after Sweden's central bank pushed its key interest rate further into negative territory at -0.5%.
Related: Fallout: Oil bankruptcies spike 379%

 

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[Zippyjuan]

End of capitalism as we know it? How many times has capitalism faced recessions?

Article also notes:

It would certainly be ridiculously premature, at this stage, to call a recession, let alone a financial crisis.

On the UK economy:

Britain will noticeably outperform the EU this year: our labour market remains strong and our banks far better capitalised than many of their eurozone competitors, too many of which are still sitting on massive amounts of bad debt

 

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Markets | Thu Feb 11, 2016 7:28pm EST Related: Stocks, Asian Markets, Markets
Nikkei dips below 15,000 for first time since Oct 2014

TOKYO
Feb 12 Japan's Nikkei share average fell below the psychologically important mark of 15,000 for the first time in 16 months, as the dollar dived to a 15-month low against the yen.

The Nikkei fell as much as 4.6 percent to trade at 14,992.14 in early morning trade, the lowest level since October, 2014.
The broader Topix dropped 3.5 percent to 1,221.03, and the JPX-Nikkei Index 400 declined 3.6 percent to 11,005.18. (Reporting by Ayai Tomisawa; Editing by Chang-Ran Kim)

http://www.reuters.com/article/china-stocks-hongkong-close-idUSL3N15Q1MP

Markets | Thu Feb 11, 2016 4:24am EST Related: Financials, Industrials
Hong Kong shares close down 4 pct in worst day since August

HONG KONG

Feb 11 Hong Kong shares plunged on Thursday led by mainland-related stocks, with the Hang Seng Index (.HSI) marking its worst daily performance since August as worries about the health of the global economy sparked a sell-off.


Mainland markets are closed this week for the Lunar New Year holiday, while Hong Kong markets reopened after a three-day break for the same festival.
The Hang Seng Index fell 3.9 percent, to 18,545.80, dragged by the China Enterprises Index which lost 4.9 percent to 7,657.92 points, its lowest level since 2009.


"There is very little good news
and continuous bad news
and this is a test of market confidence,"

 

[Zippyjuan]

Article notes:

There are few signs yet that investors are dumping their holdings wholesale, typically a mark of a market bottom, said Alan Gayle, director of asset allocation at RidgeWorth Investments in Atlanta.

"It still seems to be focused on specific issues, whether it’s credit or it’s oil. But clearly there is a more defensive tone that the market is taking and we’re watching for signs of capitulation," he said.

 

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