[youtube=http://www.youtube.com/watch?v=qfV_ENR5IZE]Looks like the market on close orders were pretty lumpy on the NYSE as share price swooned in the last few minutes. Gold and short-term Treasuries were in huge demand, helping undermine the dollar. A huge institutional buyer of cable helped turn the dollar lower early this afternoon, shifting sentiment dramatically and prompting investors to question whether confidence in the US is being lost. Stocks end off another 450 points.
The last two investment banks standing plunged 30% in the case of Morgan Stanley and 20% in the case of Goldman. Bonds of both firms traded like junk.
1.4480 is the topside target for EUR/USD overnight, a hop, skip and a jump in a market this thin. Given the big demand on dips to 1.4075/80 so far this week, I suspect China got out a chunk of EUR/USD ahead of 1.4500 on Monday morning. I suspect they have reloaded at 1.4075/80 and will let them go on rallies again if given the opportunity. That’s my story and I’m sticking with it! I need break…best to all!