As We Said Yesterday

860...840... then 2002 (around 770 on the S&P 500)

Obviously we will have some wicked volatility here but I don't expect anyone to be buying (for holding) ahead of a weekend with 'Black Monday' talk that will reigning the airwaves this weekend.

I'm sure we'll hear of some hedge funds blowing up again - there appeared to be no catalyst for this morning's carnage (UK GDP poor, we know that - Japanese exports poor, we know that)

The irony is that the two world currency's offering the lowest rates are both spiking which simply tells you we are unwinding positions in hedge funds all over the place. They "borrowed cheap, to buy" meaning for a long time they were borrowing Japanese yen at very low interest rates to lever up and buy buy buy. The fact the yen is now spiking with the dollar says to me a lot of positions are being unwound and hard. As if it were not obvious.

So expect a hard core rally sometime during the day but as I've been saying when the entire market can go down 3% in 30 minutes due to some unknown hedge fund imploding there is no place to put long term buys in here. I'd expect some stand to be put in at intraday lows of Oct 10th which is that S&P 840ish level; we'll see how many buyers attempt that. There is simply no place for investors right now to enter - only daytraders.