Shanghai Stock Exchange Had Its Worst Day Since Before 2008 Crash.

As we stated, just last Friday, we indicated the “possibility of meaningful volatility across all markets”. It only took till the next market day for this to play. In Asia, the Shanghai market had its worst day since before the 2008 crash. As of this morning, major markets movements are broad-based:

A shift to substantial 2-way price action in the NASDAQ and related markets is coming, as the 1998 pattern we first identified on August 5th plays out. Given the intensity of price action, we will wait until we see some confirmation of this. The best lesson from the last week is that markets are complex systems, and at times they crack. Anyone not telling you this is not giving you the full story.

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Any opinions or forecasts contained herein reflect the subjective judgments and assumptions of the author only. There can be no assurance that developments will transpire as forecasted and actual results will be different. Accuracy of data is not guaranteed but represents the author’s best judgment and can be derived from a variety of sources. The information is subject to change at any time without notice.