It has been so long since the Federal Reserve has raised interest rates in the US that Banks and Brokerage houses are having seminars for their workers to help them understand the repercussions of a rising rate environment.
It's wonderful to be able to take advantage of silly market moves after hours. Have you ever read something in the paper and wished you could place a trade but the markets are closed? Futures trading fixes that problem.
We caught a very quick ride down to 1,175 where the profit on two contracts was $2,500 on /TF and $2,000 on /YM and I sent out another tweet at 3:30 noting we called for taking the quick gains off the table - making $2,500 in 25 minutes - nice work if you can get it.
They say the quietest place on Earth is in the eye of the storm, which perhaps is the reason comments from Fed officials are so remarkably obtuse. The biggest factor on the market is and remains what they do in September.
Given market action over the last few days, there are plenty of market analysts who say the Fed will now be forced to hold off on tightening, perhaps even out until 2016. While there is some logic to this, the Fed's mandate does not mention anything about reacting to the market.
Should we worry about potential contagion to weak eurozone peripheral countries? I don't think so, as the current account balances of Greece, Italy, Portugal, and Spain have all virtually improved to zero, compared to India's 4.8 percent deficit.