Round 2 equities.

Equities are taking another big hit. Pointing at DOW7000's as a stable floor. Futures down 500 freezing markets for today. The US hasn't opened yet.

Roubini makes the prediction that market trading will be suspended overnight or for weeks at a time on a regular basis going forward just to make sure panic loops are stretched out. Welcome to the martial law in the markets?

And when you think about it, this is yet another wave of delevering. The press openly calls Hedge Funds de-levering this time around. Yeah more vomit.

If you believe in a fundamental band of 7000-9000 DOW stability. Stocks will probably swing to 7000 which would only take 3 days like this one. There must be stability at 5000. Calling the game on the way down, seems to work by steps. My brother was saying something about fibonacci levels of support during psychological markets. In the case of the eurodol for example next level of support was parity (1.0). If anyone has insights as to why levels of support show up spaced as a fibonnacci series, they must be psychological, anyone?

Extreme volatility is the norm. In a narrow band, every news, every big money movement, has serious impact. Bad weather is the norm. Brace yourselves, the deck gets washed and washed. This is going to go on for a long time and days like this one will be plenty.

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