Update on the Coming Stock Market ‘Crashes’!
Keep in mind that all our stock markets are now electronic (few exceptions) and this means that all the numbers (called ‘prices’) are within Cyberspace. What does this mean? This means that these cyber markets can crash and vanish with the speed of light as traders lose confidence and shift their speculations from global market to global market. We could call these types of ‘crashes’ a type of Flash Crash as all is silent (sound wise) and happening within our cyber computer screens. We now live with cyber currencies and/or bit-currencies. These imaginary currencies are vulnerable to changes in trader confidence. And ‘confidence’ is very ephemeral!
Cyber Markets are vulnerable to a cyber-Crash! We now live with Bit-currencies!
Where could the coming CRASH start? One obvious option is our China index markets. The Shanghai Composite index is up some 161% so far this year. This is a huge bubble! The Shanghai A Share index is also up some 161% in 2015. This is another huge bubble! The Shanghai Shenzhen CSI 300 index is up some 157%. The Hong Kong Stock Exchange is up some 42% in 2015. All these markets are being pumped up by individuals who mostly use leverage to enhance their returns. The officials within the Chinese government are now starting to crack down on margin purchases to slow down this bubble. Will it CRASH soon? This is highly likely! Could this be the Black Swan of 2015? Possibly!
The Shanghai Stock Exchange is up some 160% in 2015! Is this rational exuberance?
Keep in mind that all our index stock markets are now interconnected within our global cyberspace markets. Confidence pumps up these markets along with leverage and government policies. The USA (our Fed) is now starting to recognize that their QE stimulus policies of the past have not really helped increase our prosperity or growth. Our cyber/bit dollar has increased (in relative value) when compared to most other cyber/bit currencies (these past few months). Will this trend continue? It depends! What will our Fed (Yellen and Company) do as our markets start to tank? Will they resort to another type of QE (say QE4)? Will they manipulate other bench marks so as to maintain trader confidence?
Central Bank trading facilities (rooms) can now manipulate our electronic markets to prevent a total implosion from accelerating beyond select boundaries!
My sense is that the Coming Crash in our cyber markets could start soon! Soon could be this month, next month, or August. All the index markets seem to be in huge bubbles which need serious correction. Now that our Central Banks have their own trading rooms (behind closed doors) it is difficult to predict what these manipulators might devise. We know they can trigger a halt in trading if any market appears vulnerable to a huge crash/collapse. The Bank for International Settlements has two trading facilities to manipulate our markets (one in Hong Kong and one is Basel, Switzerland). We also know that our Federal Reserve Bank in New York has a huge trading room (some 400 traders) which also could manipulate any electronic stock market (these manipulators have unlimited Bit-money for these operations)!
We can now trade and watch our cyber markets on our Smart Phones in realtime!
The market to WATCH right now are the Chinese index markets in Shanghai and Hong Kong. These markets, having increased some 41 to 161% in just the past 6 months could start the Coming Crash of all history! You can watch with your Smart Phone app in realtime. All currencies and markets are now mostly electronic and within Cyberspace. Cyberspace is really an extension of our individual and collective Consciousness! Emotion rules over all our markets today! As of today, positive emotions (sentiment) has ruled over most markets! But negative emotions could emerge suddenly! The process of ‘shorting’ our markets could be one tool for this Coming Flash/Cyber Crash! Enjoy! I am: https://kingdomecon.wordpress.com.