Dow Plunges Over 500! Legend Art Cashin Warns Hong Kong Derivative Nightmare May Lead To Global Panic
KingWorldNews.com
January 20, 2016
With the Dow plunging more than 500 points, today legend Art Cashin warned a Hong Kong derivative nightmare may lead to global panic.
Eric King: “Art, you warned KWN readers that this carnage in the market was coming. We’re now 2,500+ points off the highs in the Dow. People are starting to get worried here but there is no sign of panic yet.”
Art Cashin: “It’s not full capitulation. The volume is higher — that’s good to see. And the lopsidedness declines to advances is very heavy. But you don’t have that sense of throwing the baby out with the bath water quite yet.
They have been going down in lockstep, led by crude oil. Crude oil continues to be under pressure today. The near-term contract is about to expire, so I think we’ll get some additional pressure in the afternoon.
The key area that I will be watching is if we take out last week’s intraday lows in the S&P. I will be watching the area around 1,820 on the S&P. That was the low we made during the ebola scare. So if we take that out we will look to see if there is any trapdoor follow-through or do they try to circle the wagons.
It (the selling) is not only here in New York at the New York Stock Exchange — virtually every equity market around the globe is under pressure. People are now looking to see if we get some bankruptcies in the high-yield area and what transpires next.”
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