We must be alert to how Wall Street opens
Posted by themarketanalyst on October 24, 2008
Global stock markets are currently plummeting and it appears that the Wall Street open will not fair any better. We could see the stock market halted later today if down limits are hit. The futures already touched the limit low and the Wall Street open will be key. There could easily be authentic panic taking over and driving the markets to closure. N. Roubini has already predicted this would happen and he has just cited that the decline of the futures this morning is proof that stock markets will close.
Take a look at what the current limits are in this CNBC article, How Futures Numerical Trading Limits Work
The currency markets are showing huge deleveraging with the “carry trades” being massively unwinded.
This market move could also be related to another Roubini prediction, that 30% of hedge funds will enter bankruptcy. Could these stock market declines be massive liquidation by hedge funds?
