The SSEC, China's stock market, was whacked on Monday. The Shanghai got shanghaid by the bears on its first day of trading after the holiday that was extended due to the coronavirus. The SSEC is bludgeoned 230 points, -7.7%, to 2746, laying in a bloody mess with a low in price not seen for 11 months.
The concern over the contagious conoravirus continues. A person croaks in Hong Kong so that is the second death outside of mainland China. The deaths are ramping higher in the same parabolic pattern as the total cases so that percentage relationship will likely remain consistent. There are about 450 dead and 20K infected so that is a 2.3% mortality rate. You know the communists are lying about the stats so let's call it 3% (it is probably more like 5%). About 1 in every 40 people that contract the virus, croak.
On 1/23/20 there were 844 cases, 1/26 is 2801, 1/29 is 7816, 2/1 is 14551, data ends at 2/3 with 20.6K. So, using the 3-day increments, +232% increase, then +179%, then +86%, then, estimate next at +21%. You can see the rate of change decreasing so as that rate keeps dropping, fears should calm over the deadly virus. If, however, the sequence begins showing larger rates of change, well, that is not good, and you may want to stock up on masks.
The coronavirus is sinking Chinese stocks with only 6 companies positive in the Monday session. The bloodbath and carnage was significant with 3300 shares limit down. The SSEC was down nearly -9% at the low.
The PBOC has been stepping in with stimulus to try and save the day. Of course they are. The four central bank horseman of the Apocalypse, the Fed, BOJ, ECB and PBOC, are one-trick ponies that only know how to print more money to make the wealthy richer. The central bankers are the market and lay the path forward for Our Destiny. The PBOC pump is working this morning, Tuesday, 2/4/20, in the States, with the SSEC ending the Tuesday session a short time ago rising 37 points, +1.3%, to 2783. The commies are trying to steady the ship by dropping money from helicopters, just like the States.
China will lower their growth projections. It would even be too brazen for them to fudge the numbers this year to make targets when the virus is obviously going to hurt the economy for a quarter or two. There has been an 80% drop in gambling traffic to Macau. Gambling stocks are beaten. You don't need card dealers, bed-turners and other support workers for gambling tourists that are not there.
Dictator Xi is screwing Hong Kong due to the social unrest. Hong Kong is out of masks to protect each other from the virus and rest assured, the Beijing leadership could not care less. It is not surprising a death pops up in Hong Kong. That idiot, the co-called chief executive, Carrie Lam, was donning a face mask while conducting press conferences. It is laughable. The spitum and so forth on the inside of that mask must have been disgusting. The communist puppet is not wearing her mask now so things must be better, but wait, a man just croaked. Lam is an idiot that is without mind; she only performs as per her Beijing masters' directives. If you look real close, you can see the marionette strings attached to her shoulders and the sides of her mouth that lead back to Xi's office.
The PBOC is pumping to try and hold that lower channel line at 2700 and preferably goose stocks back above that 2850-ish level. The central banks are sicko's. The entire world's financial system is ill made sicker everyday by the central banker doctors pumping huge amounts of drugs into the sick patient. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.
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