Top Tweets Today: 27/08/2015

One of the most followed economic indicator for clues on the health of the US economy is the initial jobless claims. The numbers being report suggests less people are losing their jobs meaning the economy is much stronger so as to absorb minor blebs in the system. However one does question whether these indicators prove effective as we've seen turmoil in markets ravage the market. Talk around interest rate hikes is tantamount to reading your kid a horror story to get them to sleep which does point to distress.

Initial claims came in at 271k, 27th straight week under 300k. Haven't seen anything like that since Jan '73. pic.twitter.com/YCjEKqNY8p

— Ryan Detrick, CMT (@RyanDetrick) August 27, 2015

 This is a story that I've been following closely. Over the years China has been accumulating foreign reserves in the form of US Treasury's. As is evident from the graph below the accumulative spree shows strong correlation to the Fed Reserve's Balance Sheet. But as of 2014 there has been a steady drop off of these assets. This would make sense as the Chinese government has attempted to support the market from falling further and in doing so sold off these assets.

Deutsche Bank: It's Chinese "quantitative tightening" that's slamming markets around the world http://t.co/oVwcYmZm3K pic.twitter.com/yKRlWP6PYF

— Bloomberg Markets (@markets) August 27, 2015

If you thought only cheap manufactured immetiated goods are the only thing to come from China you're wrong. It's been found that a company running under the guise of Goldman Sachs. The company which purports to be affiliated to the real Goldman Sachs has been around since May 2013.

This is amazing from @beijingscribe. There’s a fake Goldman Sachs operating in China. http://t.co/b3FNEoisG6 pic.twitter.com/ingwP087ds

— Joseph Weisenthal (@TheStalwart) August 27, 2015

Trying to quantify the Chinese stock market can be tedious but Bloomberg put some perspective on it showing that if you were to combine the members of BRICS market cap together excluding China it would equate to roughly half the size of the losses made in Chinese equities since June the 12th. Enormous!!! What it also highlights is the need for government to step away from trying to control it as it ascends to the ranks of the highest market capitalised nation in the world.

Combined Size of Brazil, Russia, India, South Africa stock markets x 2 = scale of China Meltdown, @SriniSivabalan pic.twitter.com/GhSSCMMy9n

— Emerging Markets (@BloombergEM) August 27, 2015

Paulo Coelho is one of my favourite literist and his tweet hit straight to the point. In trading we tend to get carried away with all the news and activity around us that we forget the important things in life like our goals we've set ourselves or what it is that truly makes us feel happy.  I think this week has made me realize one thing, that trading is what makes me happiest no matter what the circumstances may be. Participating with so many different people from different places around the world really gets me excited and something I want to pursue for as long as I can.

3 RULES IN LIFE: pic.twitter.com/QeJgj9qhOx

— Paulo Coelho (@paulocoelho) August 27, 2015