Friday, October 24, 2008

Capitulation Friday?

Markets around the world are plummeting on continuing fears about a global recession and forced delevering of the financial system.  Although money markets had shown marked improvement in the past couple of weeks, credit markets are still suffering from a lack of buyers and a swarm of sellers liquidating position in the face of redemptions from terrified investors.  Dow futures are limit-down before the open.  If the Dow declines 1,100 points, the market will halt for an hour.  If you were looking for capitulation, this might be it.        

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