This reaction may be short-lived. See DJ news item below. I closed my longs at 1270 (as expected given the movement in the SPYs on Friday implying 1657-1660 and accounting for the illiquidity and the mad rush to cover.) I am now massively short. IMO by Tuesday we'll see a re-test of 1220.
2131 GMT [Dow Jones] Pre-market quotes on world's stock indices indicate 1-2% fall on U.S. indices is expected after
weekend news of Fannie, Freddie bailout by U.S government, says GFT derivatives head Martin Slaney; "our current grey
market quotes suggest we are in for a nervous and negative reaction to the announcement. The immediate response by
investors is looking as though it will be one of anxiety with many traders wondering who's next and when, rather than
one of reassurement. The sheer size of the numbers involved here with the rescue package may well pile pressure on the
dollar, with the knock-on effect of reversing the commodity price correction, as we witness a flight to safety from
stocks to gold and oil." European stocks likely to feel fallout, he adds, calling FTSE to open down 50 points; current
calls are: Dow 30 down 150 points, S&P down 15 points, though adds things look very volatile and will become
increasingly so as U.S. open nears.(RXM)
Looks like GFT is massively short and using its "resources"...
Definitely going to be up heavily in the U.S. mkt AM tomorrow and then close only +10 ES or so.
