We're slipping a bit.
With global equities locked in a tight range for the past month, investors are on the lookout for any signs that central banks may start to withdraw emergency support. While Fed officials have mainly stuck to the message that stimulus will remain in place, inflation is perking up, with global food prices surging to the highest in almost a decade. Friday’s payrolls data could add another twist to the debate in the wake of Harker’s remarks, who said Wednesday that the U.S. central bank should begin discussing the time frame for paring back its bond-buying program.
Trading volumes have been about half of what is normal in this post-holiday week and it's very easy to keep things afloat in a low-volume market but, when people begin to start trying to sell and there aren't enough sellers around – look out below! We've seen this happen. Remember in 2008 when so many people were trying to sell that the brokerage computers crashed and we had to call our brokers on the phone to try to sell stocks and were told "we'll do our best"? You KNOW that can happen – that's why it's so important to hedge.