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Stocks closing on their lows is never a good sign, especially on record-breaking down days like today.
The Dow closed down 2,997.10 points – round that up and call it what it is: a 3,000-point loss. Or 12.94%, call that what it is: a 13% loss in a single day. And the Dow closed almost on its lows.
The same's true for the S&P 500 and the Nasdaq Composite.
The Fed cutting the Fed Funds rate to 0% is not a good thing. It smacks of desperation, of a lack of liquidity at big banks. Worse, if the Fed's opening up its "Discount Window" and accepting bad collateral for interest-free loans, which is what they're doing, it's because institutions need liquidity immediately, and some are desperate.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
He helped develop what has become known as the Volatility Index (VIX) - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of 10X Trader, Shah presents his legion of subscribers with the chance to earn ten times their money on trade after trade.
Shah is also the proud founding editor of The Money Zone, where after eight years of development and 11 years of backtesting he has found the edge over stocks, giving his members the opportunity to rake in potential double, triple, or even quadruple-digit profits weekly with just a few quick steps.
Shah is a frequent guest on CNBC, Forbes, and Marketwatch, and you can catch him every week on Fox Business's "Varney & Co."
He also writes our most talked-about publication, Wall Street Insights & Indictments, where he reveals how Wall Street's high-stakes game is really played.