SPI Futures traded in a 38 point range last night, with a high of 6640, low of 6602, and a close this morning of 6639, up 20 points, on low volume of 7,259 contracts. Based on that range, my pivot point and R and S levels are below. Gaps from last night are down at 6634, 6632, 6612 and 6609, then a long way down, at 6564. Gaps up from a previous day are at 6650, 6670 and 6697, then a couple more.
In the headlines - Brexit. Boris Johnson hoped to put his Brexit deal to a vote in Parliament yesterday, but the Speaker of the House blocked it. The Withdrawal Agreement Bill (WAB) “second reading” will be tonight our time, Tuesday London time. Johnson now hopes to have it all wrapped up by Thursday - Maybe. DOW up .21 pct, SNP up .69 pct, and Canada (resource driven) up .26 pct. VIX down 1.75 pct to 14.00. Have a nice day.
Today saw the beginning of the "Panic of 1907" in which a run on the Knickerbocker Trust Company led to a US wide run on banks. Knickerbocker funds were being used by then-president Charles T. Barney in a plan to drive up the price of copper by cornering the market. The plan came undone due to the dumping of millions of dollars worth of copper to stop a hostile takeover in an unrelated organization. The National Bank of Commerce announced it would no longer accept Knickerbocker cheques, triggering a run of depositors demanding their funds back. Charles Barney requested a meeting with J.P. Morgan to discuss financial assistance for the bank, but was rejected. Shortly after, and sadly, he shot himself. The resulting Panic of 1907 exacerbated an ongoing decline in the stock market that saw the DOW lose 48% of its value from January 1906 to November 1907. The banking crisis led Congress to form the Federal Reserve System in 1913. So there you go. If taking on a large long position, make sure you don't get your knickers in a twist, as that short squeeze can hurt.
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