28 February 2007

Everybody Okay Up Here?

Futures ticking near their respective highs at 6 a.m. The Dow up 101 @ 12281, the S&P up 13.5 @ 1409 and the NQ's @ 1768 up 17.50. European Markets holding steady down almost a universal 1% across the board while Asian bourses taken down pretty harshly with the Nikkei down almost 4%. It seems the world will not end today.
Looking back over yesterday's carnage especially the volume levels, one would have to assume that as the afternoon wore on and things looked bleaker, foreign traders began dumping futures contracts here in order to get a leg ahead on their respective markets. With the expansion of the electronic markets, I'm sure more than one late night lackey manning the midnight trading desk was told to just sell, sell, sell fearing a worldwide crisis. The unwinding of some of that insurance could lead to a pretty strong bounce this morning...the question is does it hold?

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