by Rick Ackerman
Index futures were getting drubbed Monday night on news that Apple’s Q1 revenues will take a hit from coronavirus-related work slowdowns and lower iPhone sales in China. However, it remained to be seen whether this so-far controlled selloff will become an avalanche when stocks open Monday morning. If it were a Sunday night, the FAANG/lunatic stocks would be moving lower in tandem with the E-Minis. However, it would appear that exchange rules governing holiday trading have left stocks temporarily frozen at Friday’s record highs. Will they plummet on the opening bell in order to catch up with the overnight selloff? My hunch is that they will and that the plunge will be unusually nasty.
Ordinarily the arse bandits who work the night shift tend to let stocks fall hard on Sunday night when there has been disquieting news over the weekend. Their strategy is to take prices down low enough to dry up sellers, making it easier to run stocks back up the old wazoo after the bombed-out opening bar. This can be a tricky engineering feat, but it invariably succeeds when DaBoyz flip the switch to send short-covering bears into a full-blown panic.