Churning Around

Churning lower today reflects the liquidation and trade adjustment process that continues to take place. Index futures have seen a significant amount of selling as managers lock in losses against open positions which seemed to have endless downside. Despite the threat of numerous institutional trading problems, the smart money has known for sometime who was most likely to develop problems given the sub-prime market conditions. We are nearing the squealing price for some of those trades where a market for those positions will be made.