PRUDENTIAL technical outlook – market update

Prudential weekly chart looks still like more downside to come. Still heading for the 25 area but with wild markets swings of $30 within 3 days from the low. Amazing theoretical profits in Icon stocks of 100%. Usually one has to wait years to get such profits but after all nobody did that trade. Those are signs of capitulation to some degree but also desperation, since hedge funds have all the young traders sitting there who have never seen anything like this. The pressure is at the limits. I hear more and more about desperate people at hedge funds who lost big time in the markets and now the clients are pulling money out big time as well. An unconfirmed report by JPM says they might loose up to $1 tril., half by trading losses and half by money redemption. That would be a dramatic earthquake in the industry. Also a big impact, since they have to unwind a multiple of the money redeemed as they use leverage. That as well can produce wild market swings and hit areas where one would wonder why those assets move as they are liquidated.

Google just came out will make an update on that.

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~ by behindthematrix on October 16, 2008.

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