Dubai coming out and basically saying, "we spent it all" has caught me off guard just like most people I have spoken with(twitter has been buzzing with Dubai fallout talk". The timing could not be any more suspect, half day in US equities tomorrow. They gotta do a full days worth of what looks like active trading in a few hours, this could really cause moves to become exaggerated. The volume will probably not be huge, when this is the case index's can really move. If Dubai does in fact default we are gonna see a lot of renewed fears about the true financial condition of the world's growing country's. Dubai has been spending all that near the surface oil money playing god turning sea into land, seems like it is a bit more than they could chew.
I'm looking for an obvious gap down in the am with a target of around 1040 if the futures stay red and continue trading down into the morning. I will not be surprised if some government agency and or news service puts out some damage control PR's to try to slow the train down. With black Friday retail expectations clearly being watched, tomorrow will make for interesting trading. If numbers do not look good early on in the session, this thing could turn fast. The buy programs will not have all afternoon to bid up the cash markets. Hedge Accordingly
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