NYSE Floor Halted, China halted 1300 Stocks, What A Mess

Just a quick note that due to “technical issues” the NYSE floor has been halted for about an hour. (Small trades still proceeding electronically).

China

Also, over the last few weeks, China has been dropping. As of last night, they had 1300 individual stocks halted as the China Government tries to figure out how to keep a balloon inflated when it’s been holed… They have banned short selling for a while too. The problem being that a “double in a year” is not sustainable and will collapse… so “good luck with that”.

SHANGHAI vs HANGSENG and SPY 2 year daily

SHANGHAI vs HANGSENG and SPY 2 year daily

This chart compares the SHANGHAI index ticker to the HANGSENG index ticker and the SPY exchange traded ETF for the S&P 500. You can see that the HANGSENG had a bit of a bubble, but the SHANGHAI was what really went parabolic. ANY TIME there is a generally flat market or ticker and it goes to a parabolic doubling behaviour, expect an eventual collapse of the bubble. Often after a double or about a year, but sometimes faster or after going further. It’s that near vertical rise and volume spike that calls the ball in it.

This graph has PSAR (Parabolic Stop and Reversal IIRC) as those little red dots near price. When price crosses those dots, you swap your position from long to short, or short to long. I.e. it says to sell when price crosses to the downside, and when to buy back in.

Similarly, Volume+ goes strongly red as the crash forms. MACD goes “red on top of blue” while the MACD Histogram (the black bit mid graph) has black below the zero line. All saying “get out or put a stop loss order in place”. Where MACD crossed zero it’s “bear market rules”, but one ought to have been out or stop loss order set at the MACD crossover.

Looking at DMI, Black is very strong (high market momentum) with blue on top throughout the run up / bubble phase. When blue and red converge it is saying “step out for a small correction” (the black top inflection calls close to the local top) and when red clearly crosses blue and stays there, the run is over. At this point “strength” is increasing as the black line rises, it is NOT yet inflected so more downside to come, and with strong “red on top”.

Clearly the different China markets are behaving somewhat differently, but this is in part because the China government only lets some folks trade in limited markets. They are attempting to manage the market, and that usually ends badly.

For Now

For now, though, just realize that global markets are disrupted and it’s best NOT to try selling anything right now (and certainly not buying…)

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About E.M.Smith

A technical managerial sort interested in things from Stonehenge to computer science. My present "hot buttons' are the mythology of Climate Change and ancient metrology; but things change...
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26 Responses to NYSE Floor Halted, China halted 1300 Stocks, What A Mess

  1. Larry Ledwick says:

    Appears Wall Street Journal site is down as well — interesting times.
    They just have a banner page up with a notice they are working a problem.

  2. Larry Ledwick says:

    WSJ.com is having technical difficulties. The full site will return shortly.

    0708chinaherd01
    Trading Halted on NYSE

    The New York Stock Exchange said it has temporarily suspended trading in all stocks, without providing further information. The update was issued at 11:32 a.m. New York time.

  3. E.M.Smith says:

    Fox Business is reporting that ALL open NYSE floor orders are being canceled. (Small lot electronic orders, i.e. anything mere mortals do, proceeding through other exchanges).

  4. BobN says:

    China’s problem is reminiscent of the 1929 in the US, way too much speculation. it seems like it can only end one way.

  5. Larry Ledwick says:

    From twitter:
    Neil Cavuto ‏@TeamCavuto 3m3 minutes ago

    Breaking news on NYSE trading shutdown. Source saying efforts to fix problem earlier led to the shutdown

    Someone fumble fingered something and crashed things it sounds like.

  6. E.M.Smith says:

    @Larry Ledwick:

    In tech speak “A one line fix.”… Usually preceeded by proclaiming “this time for sure!”….

    I’d guess they were fixing a zero day … maybe this one:
    http://krebsonsecurity.com/2015/07/adobe-to-patch-hacking-teams-flash-zero-day/

    update your flash player or be hacked…

  7. Larry Ledwick says:

    Or accidentally clobbered routing tables or fire wall rules.
    Simple edit to a key script and a stray comma or dropped ( can do all sorts of mayhem depending where it occurs.

  8. Larry Ledwick says:

    According to CERT the update is supposed to be released today.
    https://www.us-cert.gov/ncas/current-activity/2015/07/08/Adobe-Releases-Security-Updates-Flash-Player

    go here to see what version flash you have installed:
    https://www.adobe.com/software/flash/about/
    Flash Player 18.0.0.194 and earlier versions will need the fix, current version for windoz is Version 18.0.0.203
    https://helpx.adobe.com/security/products/flash-player/apsa15-03.html

  9. E.M.Smith says:

    @Larry: Yup. No new flash yet, so you put a block on the exploit protocol in the FW or router… and if that fumbles (fat finger or poor conception) you are on the floor.. or in this case, The Floor is on the floor…

  10. E.M.Smith says:

    NYSE trading back open.

  11. Kit says:

    This link maybe of interest from a computer security point of view
    http://map.norsecorp.com/
    enjoy the cyber war

  12. Another Ian says:
  13. Larry Ledwick says:

    buried in that above article is this real time map of network attacks.
    Very interesting:
    real time map of network attacks
    http://map.norsecorp.com/ (takes a bit to load)

  14. Gail Combs says:

    I think the hacking is more likely sparked by the market crash in China. It is not like China hasn’t been hacking all along.
    2011 China-Based Hacking of 760 Companies Shows Cyber Cold War
    2012 Hackers Linked to China’s Army Seen From EU to D.C.
    China also hacked Oak Ridge a while back since they are interested in getting a commercial Thorium Nuclear plant patented.

  15. p.g.sharrow says:

    It would appear that the “tech” problem had something to do with routers.
    One of the guest talking heads on Fox Business said that they were having “router” problems.
    Maybe practice at infrastructure attacks instead of general denial of service. pg

  16. p.g.sharrow says:

    China is nearing the end of their Great Leap Forward. Nothing new, The USSR did it, Japan did it. Playing catch-up is easy when you are “copying” what works for others and you have control all of the resources.
    Their build out is not organic, so they have large distortions made even worse by bureaucratic misdirection. Their “Tulip Bulb” stock market run up must collapse to return to realistic valuations.
    Living off the Americans is a short term shot, not a long term solution. Military conquest to gather wealth no longer works. Only free people create more wealth then they consume. Remove freedom with bureaucratic regulation and the well spring of wealth dries up. Everyone becomes poorer as Bureaucrats become more numerous and controlling.
    Regulators Must Regulate everything. They Have to, it is their reason to exist.
    We Don’t Need Them pg

  17. p.g.sharrow says:

    @EMSmith; Those charts would seem to indicate that something change in July of last year.
    It would seem that government officials changed something to initiate that kind of run up. pg

  18. JonK says:

    Interesting take on the crash. http://www.businessinsider.com/china-is-in-the-midst-of-a-triple-bubble-2015-7 It would seem that the market is the least of their worries.

  19. R. Shearer says:

    I’m betting on a bounce at least half way to the top. Keep in mind that the Shanghai market crashed from a higher level at the end of 2007.

  20. Gail Combs says:

    Don’t forget the 2013 IMF report: The International Monetary Fund Lays The Groundwork For Global Wealth Confiscation

    Forbes 2013

    The International Monetary Fund (IMF) quietly dropped a bomb in its October Fiscal Monitor Report. Titled “Taxing Times,” the report paints a dire picture for advanced economies with high debts that fail to aggressively “mobilize domestic revenue.” It goes on to build a case for drastic measures and recommends a series of escalating income and consumption tax increases culminating in the direct confiscation of assets.

    Yes, you read that right. But don’t take it from me. The report itself says:

    “The sharp deterioration of the public finances in many countries has revived interest in a “capital levy”— a one-off tax on private wealth—as an exceptional measure to restore debt sustainability. The appeal is that such a tax, if it is implemented before avoidance is possible and there is a belief that it will never be repeated, does not distort behavior (and may be seen by some as fair). … The conditions for success are strong, but also need to be weighed against the risks of the alternatives, which include repudiating public debt or inflating it away. … The tax rates needed to bring down public debt to precrisis levels, moreover, are sizable: reducing debt ratios to end-2007 levels would require (for a sample of 15 euro area countries) a tax rate of about 10 percent on households with positive net wealth. (page 49)”

    Note three takeaways. First, IMF economists know there are not enough rich people to fund today’s governments even if 100 percent of the assets of the 1 percent were expropriated. That means that all households with positive net wealth—everyone with retirement savings or home equity—would have their assets plundered under the IMF’s formulation.

    Second, such a repudiation of private property will not pay off Western governments’ debts or fund budgets going forward. It will merely “restore debt sustainability,” allowing free-spending sovereigns to keep tapping the bond markets until the next crisis comes along—for which stronger measures will be required, of course.

    Third, should politicians fail to muster the courage to engage in this kind of wholesale robbery, the only alternative scenario the IMF posits is public debt repudiation and hyperinflation. Structural reform proposals for the Ponzi-scheme entitlement programs that are bankrupting us are nowhere to be seen……

  21. Larry Ledwick says:

    Structural reform proposals for the Ponzi-scheme entitlement programs that are bankrupting us are nowhere to be seen……

    That’s because those Ponzi-scheme giveaways are central to retention of control of the masses. They are a kinder gentler form of bread and circuses.

    Like any addictive drug it needs to be administered in constantly increasing doses until it kills the patient. Other wise the patient kills the doctor. They have a tiger by the tail and they not only don’t know how to let it go, they are convinced that they can tame it.

    Sooner of later a black swan event will bite them on the butt and they will lose control of their “serfs” — then it will be torches and pitch forks. Their only motivation now is to push that day of reckoning onto someone else’s calender after they have retired or taken the money and run to some supposedly safe haven.

  22. p.g.sharrow says:

    The governments of the world, including the US, used this gambit to save themselves from their WW1 debits. They seized the assets of local banks, wiped out the savings of local businessmen and farmers, then demanded payment on all outstanding loans. It plunged the world into the great depression as workers could not be paid,as those that had employed them had to close their doors. The NEW DEAL socialists spent the next 8 years strangling any attempt by entrepreneurs with regulations on everything. Only the demand to shed all regulation after WW2 lead to a rebirth of the world economy in the 1950s.

    Everyone out there ready for another Great Depression? After the last one the Socialists rewrote the history books and credited themselves with saving the world from the disaster they caused. This time they won’t escape the blame. Be warned and prepared. The prophesies can not be avoided, only accepted and lived with. pg

  23. cdquarles says:

    @ PG,

    Ready? It is too late for that. We’ve been in it since 2008. Everything that the various governments have tried is variations of what they tried in the previous Great Depression. It is going to end the same way, if governments let it. They’ll have to remove the shackles that they’ve placed on people and stop the inflation. Let the deflation happen and let new management revive business. Keep taxes and regulations (redundant) low and fire 90% of the ‘civil’ service. However, knowing ‘Progressives’, they’ll let it end the other way, with general unrest and overthrow of the current ‘progressive socialist’ third-way = fascism. I think that there is enough reserve in the US of knowledge of why the US was founded the way it was for us to lead the way out. Otherwise, we’re looking at global tyranny.

  24. Gail Combs says:

    I think the Elite were hoping for Copenhagen ====> Defacto world government. Thanks to the Climategate e-mails, the leaked Danish Text and China that did not happen. Now they have a real mess on their hands.

    Putin is NOT in a good mood, China hates the guts of The Anglo-American Establishment and the BRICS Countries are not only mining and stashing gold, they started a rival to the World Bank/IMF.

    For more history:
    m(DOT)gulfnews.com/lessons-of-history-china-s-century-of-humiliation-1.884742
    (wwwDOT)ctrl.org/boodleboys/boddlesboys2.html

  25. Paul Hanlon says:

    More great links (as usual), Gail. I wonder what peoples’ thoughts are on TISA. This doesn’t exactly inspire me with confidence.

    The pre-cursor to the European Union was the European Coal and Steel Association, which was basically about setting up a free market in those products. That expanded over time into what we see today. I wonder is this just another attack vector that the “globalists” are using to expand their interests.

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