And…to paraphrase an Uruk-hai from Fellowship of the Ring: “rebound is back on the menu boys!!”
Again, the reason that we can and are having such rapid if not violent swings in both directions is due to a profound lack of liquidity.
This is from Erik Hunsader of Nanex last night…I’m awaiting this morning’s verdict from him.
Where 7,000 contracts might be stacked up around the cash price during normal times, we’re seeing about 1,000 contracts instead.
That’s a huge loss of liquidity. There just aren’t that many bids on the table to absorb whatever buying and selling shows up. So big price swings.