Evergrande Impact on SPX
Hi Guys,
since Evergrande warned about the risk of default on August 31st, the SPX slipped into the Kumo accompanied by the following series of events:
0) Aug.31 - Evergrande warns investors about the risk of default;
1) Sept.6 - Trading in Evergrande's bonds is suspended following "abnormal fluctuations";
2) Sept.8 - The group plans to suspend interst payments due on loans to two banks on Sept.21;
3) Sept.15 - Chinese authoritues told major lenders that Evergrande won't pay interest payments due on Sept.21 on its loans;
4) Sept.16 - Evergrande's onshore unit halted trading in all bonds after a domestic rating cut;
5) Sept.20 - Evergrande missed payments to at least two banks that were due Monday;
6) Sept.22 - Evergrande agrees to pay Thursday's interest on local bonds but offshore creditors remain in limbo.
*With reference to point 6) I am more of the opinion that support was provided by the US House of Congress rather than Evergrande agreeing to pay onshore creditors. However these factors can be considered supportive both and the Index appreciated right on the 100SMA.
Today SPX is trying to exit the Kumo towards 50SMA or Kijun.
FOMC press conference in a few hours.
Here a zoom out of the above chart:
Thank you for your thoughts and kind regards
Cozzamara
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
Trading in foreign exchange (“Forex”) on margins entails high risk and is not suitable for all investors. Past performance is not an indication of future results. In this case, as well, the high degree of leverage can act both against you and for you. Before you decide to invest in foreign exchange, you should carefully assess your investment objectives, experience, financial possibilities and willingness to take risks. There is a possibility that you will lose your initial investment partially or completely. Therefore, you should not invest any funds that you cannot afford to completely lose in a worst-case scenario. You should also be aware of all the risks associated with foreign exchange trading and contact an independent financial advisor in case of doubt.
since Evergrande warned about the risk of default on August 31st, the SPX slipped into the Kumo accompanied by the following series of events:
0) Aug.31 - Evergrande warns investors about the risk of default;
1) Sept.6 - Trading in Evergrande's bonds is suspended following "abnormal fluctuations";
2) Sept.8 - The group plans to suspend interst payments due on loans to two banks on Sept.21;
3) Sept.15 - Chinese authoritues told major lenders that Evergrande won't pay interest payments due on Sept.21 on its loans;
4) Sept.16 - Evergrande's onshore unit halted trading in all bonds after a domestic rating cut;
5) Sept.20 - Evergrande missed payments to at least two banks that were due Monday;
6) Sept.22 - Evergrande agrees to pay Thursday's interest on local bonds but offshore creditors remain in limbo.
*With reference to point 6) I am more of the opinion that support was provided by the US House of Congress rather than Evergrande agreeing to pay onshore creditors. However these factors can be considered supportive both and the Index appreciated right on the 100SMA.
Today SPX is trying to exit the Kumo towards 50SMA or Kijun.
FOMC press conference in a few hours.
Here a zoom out of the above chart:
Thank you for your thoughts and kind regards
Cozzamara
Disclaimer:
Please note that I am not a professional trader and these are my personal ideas only. The information contained in this presentation is solely for educational purposes and does not constitute investment advice. The risk of trading in securities markets can be substantial. You should carefully consider if engaging in such activity is suitable to your own financial situation. Cozzamara is not responsible for any liabilities arising from the result of your market involvement or individual trade activities.
Trading in foreign exchange (“Forex”) on margins entails high risk and is not suitable for all investors. Past performance is not an indication of future results. In this case, as well, the high degree of leverage can act both against you and for you. Before you decide to invest in foreign exchange, you should carefully assess your investment objectives, experience, financial possibilities and willingness to take risks. There is a possibility that you will lose your initial investment partially or completely. Therefore, you should not invest any funds that you cannot afford to completely lose in a worst-case scenario. You should also be aware of all the risks associated with foreign exchange trading and contact an independent financial advisor in case of doubt.
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