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| Ought to be limit up thru tuesday and maybe trade wednesday. The timing worked out pretty darn good. All the guys who did not get out thursday got killed on friday and market will close limit up on tuesday and by the time the market is closed everyones pretty pink margin call will be in their mailbox so they can send a check in or capitulate on wednesday. I have a feeling its going to get real real crazy. Normally elavators have some headges they have to send some margin in on and some that are in the black and they put money into their account. Its very very rare for all headges that an elavator has to be against them on margin. Thats where we stand today. elavators do not have unlimited ability to borrow money. When they exceed that capacity the will either come back on the farmer for money(that has happened before) or they will go out of business. Here is the tricky part. When they come unglued , they are going to have to buy the market to get out of their shorts ,my guess is that they will put the highs in this market. Where? Thats open for some debate. One thing I know for sure, when the market has a victim,they dont let them of the hook.
I can explain how we got here if you have any interest? | |
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Whats going to happen tomorrow
