Margin calls will drive the market some until they’re all cleared. Those with cash are going to be able to buy historic bargains. Many big players quietly went to cash weeks ago and are now feasting on the carnage. There will be no bottom until the margin calls are cleared. I expect the market to shoot back up rapidly from wherever the bottom is. The Wuhan 400 will come and go and the currently deleveraged will leverage for dirt cheap on the way up and make obscene profits. Then they’ll quietly deleverage again when the market raise begins to slow.
It would appear that the recent selling of gold is to cover those margin calls.
