China Loses 30%, Suffers Bad Day At A Low, World Stocks' Failed Bounce

This is an abridged version of our Daily Report.

China losses exceed 30%

The Shanghai Composite is now down 30% from its recent high.

That worries some U.S. investors concerned about contagion, but losses this large didn’t usually bleed over.

Bad days and new lows

The Shanghai Composite’s drop of more than 2% on Thursday, to a fresh two-year low, was its second such loss in a week. During its history, a loss that large at that extreme of a price level has led to multi-month rebounds every time.

Failed bounce

An index of world stocks suffered a failed bounce from its low last week. How buyers respond in the short-term was telling for longer-term returns.

Hard to find a winner

The S&P 500 has enjoyed only 5 positive day out of the past 20. The last time that happened was October 2008, and July 2002 before that.

Put buyers

The ISE Equity Call/Put Ratio showed that options traders bought only 91 calls for every 100 puts on Thursday, the most pessimism since April.