Legend Art Cashin Warns Panic In This Major Market Will Shock The World
KingWorldNews.com
January 12, 2016
Legend Art Cashin warns panic in this major market will shock the world.
Eric King: “Art, in your last King World News interview you said,
“You want to watch oil carefully. There’s a good chance we are going to retest that
area around $33, and if that breaks it will present a possible
new move to the downside that could be crushing.”
Oil has quickly plunged about 10 percent below that $33 level. How did you know, and where do we go from here?”
Major War In Oil & A Possible Derivative Nightmare?
Art Cashin: “A couple of things are going on: When the Saudis announced that they might do an IPO on Aramco, the big Saudi oil producer, that told traders that the Saudis might be stocking up for a really protracted fight on the oil price. That’s when you saw a lot of bids disappear.
As we talk shortly here in the afternoon, we are just above $30. If the price of oil breaks $30 it could lead to a little bit of cascade selling and that would be a real problem. There are certain derivatives that are triggered when oil breaks certain price levels. It actually brings on more selling in oil as entities are forced to liquidate certain positions.
The thing that I am concerned about is if the price of oil breaks $30, does it lead to a Kind of trapdoor, and is there subsequent selling?
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