last Friday’s crash on Wall Street happened again. the US markets are showing such extremes that it feels like Black Day is repeating itself at least once a week.
no one is quite sure what caused the plunge across all indicators. the plunge in tech stocks, the liquidation of the Enkeri trade, and the lackluster performance of various indicators are all being blamed. we don’t know what’s going on, so we’re just throwing things out there.
leading up to Black Monday, our markets will be quite choppy, with individual stocks rising and falling at random. it will be common to see spikes followed by plunges in minutes with no trading volume.
investor sentiment has also become so convinced that there are too many reasons to go against the market. In the run-up to Chinese New Year, market trading volumes are likely to be at an all-time low, and there will be no clear leaders.
the ‘fear’ of a recession, which has been dubbed the ‘fear of R’ for more than three monthsnow, is believed to be overdone.
one of the more noteworthy developments is the issue of the Biosecurity Act, which is the US’s attempt to keep China in check. the U.S. is weighing whether or not to implement it, citing the need to protect their bio/pharmaceuticals and the DNA of their citizens. it is essentially a policy to keep China’s bio/pharma industry in check, and it will be interesting to see how domestic bio/pharma stocks will fare as a result.
the blue whale issue continues. whether it is real or not, the market may accept it as a strong material… we’ll have to wait and see.
there isan issue of Yanolza’s delayed listing on NASDAQ. it is believed to be due to unfair(?) or dominance(?) issues that started in Korea and weakness in the financial market.
futures/options expiration date for this week is Thursday, September 12th. add to that the Chuseok holiday, and trading volumes plummet and volatility intensifies. absence of leading/biggest stocks, etc. it’s not going to be an easy week.
in a market like this, I think if you keep your trades to a minimum and don’t make any impulsive trades during the day, you should be able to get through it without too much difficulty.
Good Luck.