Down as expected following the IMF meeting. Nothing agreed, nothing gained, and European market open is going to be a rocky ride. US futures traders seem to have gotten a bit ahead of themselves pushing the markets up early, and so did the euro traders, but such follies were promptly given up as soon as the Japanese markets opened. (Speaking of which: Yen at 76.40 again.) Meanwhile, asian traders are putting their positions towards the lower end of the ranges they have been trading in, with the HSI coming under serious pressure at the 17550 level, which seems to serve as intraday resistance.
What is so bad about this level?
There are essentially no warrants on the index that go lower than this! People that are issuing warrants did not expect things to get this bad, and there’s either the need to go wildly short or find some other ways to hedge your downside exposure should there be any further falls. Also, investors themselves cannot really hedge inexpensively, so a lot of the falls that will be coming will cause greater strains on the money management and accounts of traders and institutions. Expect this to be the real test of mettle, because if we break 17 000 it may well be too late. Late addition: HSI shaved 110 pts in 6 minutes by the end of me writing this, trading at 17 440.