Sunday, March 16, 2008
Plunging Stocks, Plunging Dollar: Updates Via Twitter
I pulled the bottom chart off my screen a few minutes ago to show you how things are shaping up in an unusual start to the trading week. We've already declined over 30 ES points from the highs following the Fed's announcement of a discount rate cut, with volatility very unusual for overnight trade. Japan is down over 3%, and the dollar is absolutely plunging versus the yen (top chart) and euro (middle chart). Meanwhile, we are not only breaking below Friday's stock market lows, but also challenging the important lows from January. This is a very dangerous market, given the dynamics of plunging rates (2 year Treasuries at 1.35%; 10 year @ 3.37%) and plunging dollar. I will update market observations via Twitter. The last five Twitter "tweets" appear on the blog home page; the full set are on my Twitter page. Interested traders can subscribe (no cost, of course) via RSS; see my Twitter page.