The NYSE was shut down several times this morning disrupting trading and the 'technical reason' has not been disclosed to the public. Currently, afternoon activity indicates the averages will suffer over one percent loses by the closing bell. The SP500 is at the 200 DMA and the DOW is below the 200 DMA, WTI oil is trading in the low 51's while other commodities are repetitively stable.
Here is the current market situation from CNN Money
$NYA200R chart below is the percentage of stocks above the 200 DMA and is always a good statistic to follow. It can depict a trend of declining equities which is always troubling, especially when it drops below 60% - 55%. Dropping below 40%-35% signals serious continuing weakness and falling averages.
STRASBOURG (Reuters) - Greek Prime Minister Alexis Tsipras called in a speech to the European Parliament on Wednesday for a fair deal to keep his country in the euro zone, acknowledging Greece's own responsibility for its plight, after EU leaders gave him five days to come up with convincing reforms.
(Reuters) - Trading in all securities were halted on the New York Stock Exchange on Wednesday following earlier reports of technical difficulties, although NYSE-listed issues was still trading on other exchanges.
After a series of cyber failures involving first UAL, then this website, then the NYSE which is still halted, then the WSJ, some have suggested that this could be a concerted cyber attack (perhaps by retaliatory China unhappy its stocks are plunging) focusing on the US. So we decided to look at a real-time cyber attack map courtesy of Norsecorp which provides real time visibility into global cyber attacks.
What clearly stands out is that for some reason Chinese hackers really are focusing on St. Louis this morning.
Whether this is related to the series of suspicious cyber failures today, is so far unclear, although if there is a connection at least there is a way to keep track of the first global cyberwar in real-time.
SAN FRANCISCO (Reuters) - Twitter Inc rolled out three new products for its direct response advertising on Wednesday, two months after the company said weak demand for the product had lowered its revenue forecast for the year.
On Tuesday, Latvia's central bank chief Ilmars Rimsevics called the introduction of a new currency in Greece the "most realistic scenario."
The country is in its second week of capital controls and banks remain shut in the wake of a referendum which saw some 61% of Greeks vote against the terms of the latest bailout deal proposed by the troika.
Now, Germany has indicated that any new proposal will come with harsher terms to reflect the recent deterioration in the Greek economy. Furthermore, Berlin's stance on debt writedowns for Greece (which the IMF deems necessary if Athens is to return to fiscal sustainability) has hardened, meaning it will now be exceptionally difficult for Tsipras to fulfill the implicit promise he made to his people when he campaigned for a referendum "no" vote.
Given all of this, it now appears increasingly likely that Greece will be forced to return to the drachma or will at least be compelled to issue some manner of scrip in the face of an acute cash shortage and a worsening credit crunch which together threaten to leave government employees in the lurch and cut off the flow of imported goods.
Sure enough, Kathimerini says the Greek government is indeed preparing for the launch of an "alternative currency." Here's more (Google translated):
After valiantly defending the 121 level, moments ago what is perhaps the most important carry currency for the US stock market dipped below and is now trading at fresh lows not seen since May.
Among the factors cited for today's weakness, the primary one is China. Overnight DZ Bank said that "worrying" developments in China seem to be turning yen into favorite place to be as safe haven both globally and within Asia. It adds that "rising foreign purchases of short-term JPY debt would suggest that investors are currently viewing yen as safe haven."
Whatever the reason, the one pair that has been stable as a rock in recent weeks, and which provided a key support to the market, is now sliding. Where does it go next? According to Goldman's technical analyst Sheba Jafari there is a long way down at this point, all the way to just under 119 where the next support level is.
The next level to focus on is 121.06 where the 100-dma and an ABC from the Jun. 5th high converge. A break below that point will further imply that the decline since June isn't actually corrective at all but rather something more impulsive. If this is true then the next likely target should be down at ~118.96; a 1.618 extension from the June high. This level is also near to the 200-dma which is at 118.51 and rising.
If accurate, it means US stocks will likewise take out the all important 200-DMA suppo ...
SHANGHAI (Reuters) - China's tumbling stock market showed signs of seizing up on Wednesday, as companies scrambled to escape the rout by having their shares suspended and indexes plunged after the securities regulator warned of "panic sentiment" gripping investors.
"I may be wrong, but I'd say you're lucky to be alive and I think we might say the same for the rest of Southern California...."
As some wit in the West End pointed out.. the New Greek Finance Minister is very aptly named: "Mr That's-a-lot-of-loss"
As I return to the office after a proper breakfast in the West End, I'm a tad worried about the market's complacency. Euro's took a soft shoeing through Tuesday but it reversed along with peripheries on apparent rumours of accelerated ECB QE buying. The flight to quality has benefited Bunds, Gilts and Treasuries, but stock markets continue soft on the diminishing hopes that a messy Greek Divorce, Grexit and Default can be contained.
Yet... With this brewing crisis around Greece, the fact the Shanghai stock market is exposing all kinds of uncomfortable truths about China, (for instance, the lack of competitiveness, overleverage, massive over-expectations in valuations, the failure of the stock market as "bread and circuses" for the middle classes, and the fears of the party at a troublesome time), and the big bond reversal in the last quarter... and its perhaps surprising that things aren't a whole lot worse. It's no wonder global commodity markets are flimsier than a chocolate tea-pot. The first half of the year was pretty torrid... but it could still prove pleasant compared to what may be coming.
I'm wondering if Global Markets are poised on the edge of the precipice about to take a step forward?
My mind keeps wandering back the few weeks before the Lehman crisis erupted. No one could quite believe it could ever happen. But having observed the growing crisis as Northern Rock wobbled in 2007, the big ba ...
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