Overnight capitulation?

Posted on 08/09/2011


or a hedge fund/institution blowing out?

S&P futures have traded in a 70 point range pre open.

Crude has traded in a $7 range (it opened 1/2 hour ago).

Today promises to be INCREDIBLY interesting when the FOMC decision is released and particularly when Bernanke moves into the Q&A session.

Stay nimble. Watch Gold, because if it stays bid then the panic is not over. Be aware that the market has a proclivity to trade right around unchanged ahead of Fed decisions.

CDS spreads are abating a bit and I would expect the VIX to contract markedly at the open…..whether that continues is subject to speculation (quite literally).

Finally, I had an amazing political science professor in college that regularly pointed out, “in the US people read the news, in the rest of the world people LIVE the news”. That may change before too long…..in the meantime, enjoy The Bachelorette and Big Brother!

Posted in: Uncategorized