The Writing is On The Wall
If you couldn't tell from the overnight market meltdown that the writing is on the wall, please give us your address so that we may send you a complementary Indiana Grain pen.
The fourteen hours of trading that preceded today's market open reminded us yet again that the era of "day trading" is over for any trader serious about opportunity and monetizing 21st century markets. While most locals were tucked away in slumber as a nuclear meltdown both literally and figuratively overtook global markets, the tone has been set for a full day of trading that will be exponentially more difficult to navigate and monetize for those just showing up for work.
Stocks and US futures fell precipitously overnight, with the Nikkei 225 index posting its biggest drop since 1987, the year Gordon Gekko first reminded us that money never sleeps. Commodities, meanwhile, joined the tumble-fest as treasuries lifted on full blown fears that Japan is on the precipice of a nuclear disaster. Not helping ease market turmoil in the least is that Bahrain credit risk exploded following the deployment of Saudi troops.
Copper for delivery in three months dropped 2 percent on the London Metal Exchange, sparking a broad decline in industrial metals. Silver pulled back 3.5 percent, dropping for the first time in three days. Right along with silver for the fall was platinum, palladium and, yes, gold.
Those of us who worked through the night remaining engaged with markets (and engaged with each other on Twitter) are poised for a busy day rife with opportunity. It's days like today when we must reiterate that there's great risk in futures trading, especially for those who only turn on their screens after breakfast.