..Snap Crackle and Pop..
Friday, October 24, 2008 at 07:40AM Nope... that's not your bowl of cereal that is going Snap, Crackle and Pop!. This is no fairy tale song of health, merry chorus...It's your U.S markets!....
...Just when you think you've seen it all lately
Well, this pre-mkt morning is a rare lock down happening on the U.S markets. ... "Forced selling", redemptions, yesterdays break in SPX, runaway $USD all in part has led to these inevitable developments. Add to the mix, overseas data showed the U.K economy shrank strongly. It was the first decline in output since 1992 and the biggest single drop in any quarter since 1990.
Fear has settled in this morning and the circuit breakers are in to let everyone breath it all in. Considering the freeze we just discussed yesterday in trade around the world, it's only natural it's payback time as they freeze the markets!.
We're going to hear all this 'capitulation' speak in the morning, buy the open noise for a 'pop'. To each his own. Didn't we just have one of these?. Sooner than later, it will be snap, crackle and no Pop.
As far as we're concerned, until we get back to days of 3% intraday low- high ranges instead of the 6+% we've been witnessing, we won't see a bottom form off any institutional, fundamental investors.