This is what The Slog posted last Friday.

Slog21815Arabia and Asia are now in panic. Western market futures strongly suggest the same is about to happen here. For the first time in years, fundamentals in relation to economic data, commodity prices and collapsing world trade are being obeyed.

During Sunday trading, stock prices in Gulf states sold off massively. The Tadawul All-Shares Index in Riyadh, the Gulf’s leading market lost 6.86%. They should rename it the Tadawful. Property shares fell 9.5%, petrochemicals by 8%. Dubai’s DFM Index plunged 7%, the Abu Dhabi Exchange 5%, and Qatar 5.3%.

Overnight in Asia, the Shanghai Composite has so far fallen 8.5%, the Nikkie 4.5%.

This is all newsy-here-we-go stuff, but the signs have been there for some time: there has been, for example, an 18% chute on the German DAX since the ECB announced its bank manipulation economic stimulation plan some months back. In recent weeks, the dollars leaving the NYSE should’ve told investors all they needed to know. This got so bad in China, the government introduced Draconian laws to halt the selling, and the PBOC began frantically buying shares. But on 18th August, the Shanghai composite fell 6%.
Gold meanwhile had steadily climbed over the last 30 days. It began accelerating upwards eight days ago; it’s now 8.5% up in August to date. But all the other ‘real’ commodities like oil, lumber and copper have fallen off a cliff.
When Fed Chair Janet Yellen opted not to take a rate hike off the table last Wednesday, several gobby commentators said she was mad; events seem to have proved them right, but the Wall Street heavies have always been great believers in the self-fulfilling prophecy technique. Mind you, it did come hot on the heels of a Yuan devaluation.
Anyway, with the FTSE about to open (it’s 08:58 CET here), this is the dismal line up:
* Bloomberg Commodities index at 16 year low
* FTSE futures are saying at least 200 points drop.
 * Dow Jones 400 point loss predicted

* S&P futures have plunged:

S&P18815

Welcome to The Correction. Whether it’s Crash2 or not remains to be seen. Stay tuned.