Financial Metldown!

What a crazy day, of May 6th 2010.

We literally had a financial meltdown in most of the markets.

Equity, Currency, European markets…all were hit with the same distress.

The EU was already in its downtrend with the news of Greece, Portugal, Spain and Italy. People were loosing confidence in the Euro. Investors are just looking for a reason to get in and invest. They just need one shove, or push, or signal from the markets to go in, in the hope of making money. This signal, in my opinion, was most likely a major mover, that wanted to cash in on the downtrend as well. Everyone saw this move, and everyone got in. The currency pair GY moved down 1000+ points! That was at least 4 times its daily range! This move in the currency markets that affected all the Yen pairs, influenced the equity markets as well, even commodities! DOW dropped 900 points! but then recovered. This affected the equity markets so much that NASDAQ is going to cancel all its trades from 2:40pm to 3:00pm. Imagine that. All the profit(or loss) that people made wiped out.

However, this is not likely to happen in the currency market, unless you just robbed your broker dry to the bone, as we have to keep in mind that they aren’t that big. Regardless, it was quite exciting.