Yet another sign of impending danger?Some months ago, I posted about the sudden and dramatic fall of the Argentinian stock market, including one of its largest banks (BMA). Today we look at a stock from the Hong Kong exchange. Artgo is no BMA, but neither was it a speculative IPO. The important thing I am trying to show here is now we are outside of the singular market of Argentina and a stock has dropped 99% in a matter of minutes. One might want to ask the question, how is this possible and is the US market really safe from these sorts of plunges?
Disclosure: I am short the HK and Chinese exchanges via FXP.
3313 trade ideas
$6 BILLION BUBBLE POP! This is a rare and exciting example of a bubble that popped.
Testing the theory that the best time to buy is when there's blood in the streets, would anybody buy this stock now?
Well I don't imagine many people would buy now. I'm not tellin' what I'm doing!
This is not a recommendation to trade securities. If you take a position and lose your money, kindly sue yourself!
My new favorite stockAnything can happen :)
Usually ponzi schemes (this is how I call hype greater fool bubbles) fall in 2 way:
1- Go up slowly fall fast (Enron I guess)
===> Retail and bad funds either want to secure the gains they waited so long for, or the weak uptrend got them in partial disbelief so they believe it can go very low and want to get out asap. They often get tricked into selling right before the uptrend resumes.
2- Go up fast fall slowly, such as in the following 2 examples:
===> The mania very rapid gains got people really excited, so they refuse to sell and so the price declines very slowly. They are persuaded the price will not get much lower and the downtrend is just temporary. This is often the most dangerous noob bait and they end up holding bags for a very long time.
It is not always the case, and also the timeframe is not always the same, like it could have gone up slowly on the weekly and fast on the daily and the dialy bubble pops but weekly is not in a bubble, etc.
It's a general idea thing. It is an intuition thing can't really define it you either get it or you don't.
