SPI Futures traded in a 298 point range last night, which seems to be usual kind of range these days, and I was tempted to say a 'small' 298 point range, after last weeks ranges, (but resisted the temptation), with a high of 5078, low of 4780, and a close this morning of 4839, down 209 points, on high volume (for us), of 52,599 contracts, however, volume will be high due to volatility plus the expiration of the March contract this week. Speaking of volume, one of the most actively traded futures products, the ES (E-mini S&P500 futures) didn't trade for hours yesterday, after hitting the 5 pct limit-down circuit breaker after opening yesterday at 5 pm their time, (not midnight as somebody posted yesterday). Oh, give me a sign. What was more interesting was that the SPI and XJO continued to do their thing regardless, albeit to the downside, so perhaps semi-permanent limit-down was the lead, so worth keeping an eye on them. Yes traders, the US Fed should write a new book entilted "How to spook the market"... Cutting interest rates to zero and announcing a 700 billion dollar government securities buy-back on a Sunday evening might do it.. Did someone say 'Emergency cut?'... Well, the result was probably the antithesis of what was expected, as US futures went limit down shortly after open and stayed there till Wall Street opened, after Asia and Europe were in the red, to see the DOW drop the most points in history, being 2,997 points, or 12.93 pct, SNP down 11.98 pct, and Canada (resource driven) down 9.82 pct. The VIX up 42.99 pct, to 82.69, getting closer to the GFC high of nearly 90. Nothing to sneeze about... Did somebody say it's going up after rate cuts and Quantitative easing ? - you know, those things that history shows don't really work that well. Well, yes, it's going up into the history books that's for sure, and will probably make the GFC look like a mild colt. However, it is probably time to start planning the recovery strategy, but I'm not hitting that buy button just yet. Have a nice day.
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