CIT had some awful news out this morning.  The stock was halted right after the opening and once reopened it tanked almost 50%.  But then a magical thing happened, the stock traded back to $1 from a low of $0.75.  What is so magical about $1?  Any stock that trades under $1 is not eligible for a liquidty rebate from the exchanges/ecn’s.  The cost to trade sub $1 stocks is FREE but you don’t get the rebate.  But if the stock gets over $1, the the liquidity rebates which could be as high as $.003/share kick in.  So, it appears (more…)

Its Monday morning and the S&P futures are currently up 5.  This morning the “reason” is that CIT cut a deal with its bondholders.  Last Monday, a very similar S&P futures gap up in the morning but that was due to Meredith Whitney upgrading Goldman.  We always have a very neatly packaged “reason” for why the S&P futures are either up or down in the morning.  But maybe something else is going on here?  When I look at the overnight chart of the S&P futures, I see this middle of the night spike that starts around 3am eastern time.  Its (more…)

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