Futures vs Fair value are now indicating an implied opening of -58 points for the DJIA and -7.8 points for the S&P500.
In the financial news there’s worries among currency traders that potentially some currency trading firms may go belly up over the extreme dramatic instantaneous surge in the Swiss Franc yesterday as currency traders frequently employ 100:1 leverage or greater (perhaps 400:1). Had anyone bet against the Franc vs the Euro they’d now be sitting on ENORMOUS losses, which the trading firms may have to eat themselves. Usually, currency trading is quite tranquil, and many currencies don’t move very much throughout the trading day, firms allow such extreme leverage because they can initiate margin calls, and traders can usually use stop loss orders. Yesterday surely caught some off guard.
It also could have proven to be a boon for traders long the Franc versus the Euro. They’d surely be in hog heaven at this point!
Bernhardt Capital Management LLC 