It seems to be slowly dawning on traders that the Fed has no plan, and worse, no exit. The surprise is that the investing crowd has been in denial of the facts, which we can only put down to the human desire to be blind to negative outcomes.
Since the middle of April everyone seems to have been building a short position in the equities market. We know picking tops or bottoms fighting the major underlying trend is risky business, but most individuals cannot resist.
As a result of the securities industry decision to close U.S. equities markets tomorrow because of Hurricane Sandy, CME Group will be closing its U.S. equity index futures and equity index options on futures markets.