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Shutting down Wall Street today all the US markets closed through tomorrow it is the first time they've closed unexpected -- 9/11.
But the CME group says it will re open futures markets today in about.
Twelve minutes from now the overnight electronic trading will be opened Spencer -- is the foundered -- and -- -- officer would steal my investment Spencer great to have you back on the show.
And what do you think's gonna happen when futures open in just minutes.
Thanks for having me you know I I don't know that we're gonna get a enormous move from the open in just a couple minutes when the futures close this morning S&P was down about five points you've got a big support level at 14100 on the S&P.
My that is that we open somewhere around there and start to test that out.
But once we go overnight then you still have the markets closed in the -- that the machines are gonna take over tonight and and who knows what can happen in the market.
-- -- algorithms getting control it's it's crazy.
In the navy is a market that is electronically traded now which is one of the reasons why people were surprised and dismayed.
That the exchanges shut down when you know so much of it is remote and electronic do you think it was really necessary what message does it sent.
-- and it's such a good point and not enough people are talking about this I hope this becomes the story line because this is a very telling statement of -- that the powers that be do not trust this market to just run electronically.
Having people on the floor -- circuit breakers on the order flow that they still generate some is important to keep everything in check because the worst thing that could happen is that we would go all electronic -- a day like today when we wouldn't have as much volume and we get a flash crash -- we get crazy volatility where people are kind of blocked out of the market.
That would be devastating for the confidence in the market but it sends a clear signal that this market is not ready for electronic trading.
And that's the direction we're headed down so it it is something that we have to pay attention to.
All our traders on the floor in the flash crash happened -- -- traders on the floor when you know Knight capital happened and the like so.
I don't I mean we've had instances with people there.
That's right now I think that's it's it's really humans losing control a little bit of the system and I think that's why everybody's gotten more and more panicked and why the confidence in the market is just really at at at all time lows -- people don't trust the market it feels very phony.
Seen trading increments and fractions of a penny now yeah really a lot of the problem if if we saw increments that we're just a nickel still very very tight but not a fraction of a penny.
We could see a little bit more order flow that would make high frequency trading so profitable because what's happening -- -- because it's so profitable we're seeing more and more people get on board with high frequency trading and just overwhelming.
The remaining volume yet on the floor it's not nearly as profitable.
-- real quick before we run out of time what would you buy here as a result of what's happened in the past couple days and markets have been closed are there any opportunities that having created.
Take a look at our Bob gasoline.
If the refiners get hit in New Jersey and Pennsylvania and end up losing power having to shut down for extended periods of time you could see a real spiking gasoline.
I'm airlines are also gonna really suffer because there are not only haven't canceled flights the probably have to cancel more than what they've already canceled.
You also -- -- fuel prices come up so they're the worst imaginable so that that would be a place to be short absolutely not our -- trade is a very interesting one Netscape that's the gasoline contract a lot of folks today have been saying the opposite of what you just did.
Feeling you could be right so that may be the best -- the day we'll keep an -- and it.
Thanks for coming on of course if you're wrong about that I needed just about that I agreed with the -- -- just be ready.
Ha ha ha ha that's against the one time you can undo that's the one -- -- root for gas prices ago -- that's your that's your RA thanks so much.
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