Among the many causes of global stock market turmoil, there is a coordinated attack underway to destroy the Chinese Communist Party’s economy according to Miles Guo’s comments made on Monday. Unfortunately, many investors are caught in the crossfire.
The “romantic” relationship between the CCP and Wall Street made the CCP a monster seeking world domination. COVID-19 became a wake-up call for many to see the real danger of dealing with the CCP. Countries with close ties with the CCP are hard-hit by the CCP-virus: Iran, Italy, and Japan.
The Chinese Communist Party has been artificially propping up its stock prices to avoid a total meltdown. The irrational move of the A-share stocks traded on the Chinese stock exchanges indicated that the stock prices were artificially controlled by the CCP. According to Miles Guo, there are built-in mechanisms in the Chinese trading software to price manipulates.
On Tuesday, the Chinese A-shares fluctuated wildly in the early morning. Six minutes after the opening, the three major stock indexes suddenly went up. The SSE index increased by 1.5% in 10 minutes after opening in the early session, and the GEM index went up by 2.5% in the first 10 minutes after opening. Then all went down.
However, as of the close of the morning, the three major stock indexes have all gone up. The Shanghai Stock Exchange Index rose by more than 0.62%, the Shenzhen Stock Exchange Index rose by 0.88%, and the GEM index rose by 0.83%.
The communications industry, telecommunications operations, and brokerage trusts led the gains in the industry sector; concept stocks such as gallium nitride, domestic chips, 5G, and wifi led the gains.
The global financial markets just experienced a super “Black Monday.”
Shortly after the opening bell on Monday, the S & P 500 index quickly fell by 7%, triggering a 15-minutes trading halt automatically. Coincidentally, the same day 11 years ago marks the beginning of the longest bull market in US stock history.
After Monday’s plunge, all three US indexes were nearly 20% below their most recent highs. U.S. technology stocks, financial stocks, and oil stocks suffered setbacks across the board. The fear index (VIX), which measures the volatility of U.S. stocks, soared nearly 47%.