Indexes snapped back, and finished 5% on the upside. The market volatility is insane, the movements percentage are reminiscent of the dot come days.
China devalued the RMB 4 times in less than 2 weeks. In addition, they are selling off their US treasury reserves to infuse capital into the Chinese mkts. This game is not going to end well bc mkts are artificially inflated by gaming the capital mkts instead of companies reinvesting capital into actual R&D, new products, manufacturing, and creating consumer demand.
US companies are playing the same game by borrowing money at zero percent, and buying back shares to prop up their mkt values even though they have not spent any money to create new products nor reinvest the capital back into the company.
The whipsaw action gives off an illusion that an extremely weak world economy can be recovered in a day. It needs several quarters to stabilize and recover. Welcome to the new norm of a downtrending mkt.
VIX 30, still a lot of fear in the mkts
ZB 154’24, deflated due to China selling US treasuries.
6A hit an all time low
CL recovered a little, no interest until confirmed reversal
GC, SI trended lower as mkts recovered
HG traded lower, always a good play as it trades within a predictable range
FXI, ASHR stabalized from free fall