Posted by pepperwu on 11th of Sep 2008 at 04:50 pm
Everyone's looking for a panic washout. Consider:
1. Lehman is down 70% in 3 days. Suprisingly, the rest of
the market isn't that worried about the imminent collapse of the
5th biggest bank.
2. Hedge funds have been forced to liquidate resources
stocks. Shares down significantly over the past few
weeks. Individuals are gone from the market. When hedge
funds liquidate, its not their own money, they can do it somewhat
dispassionately and so aren't going to flood the market will sell
orders all at once but liquidate over a number of
days/months.
Do we need individuals selling to get a panic washout?
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Everyone's looking for a panic
Posted by pepperwu on 11th of Sep 2008 at 04:50 pm
Everyone's looking for a panic washout. Consider:
1. Lehman is down 70% in 3 days. Suprisingly, the rest of the market isn't that worried about the imminent collapse of the 5th biggest bank.
2. Hedge funds have been forced to liquidate resources stocks. Shares down significantly over the past few weeks. Individuals are gone from the market. When hedge funds liquidate, its not their own money, they can do it somewhat dispassionately and so aren't going to flood the market will sell orders all at once but liquidate over a number of days/months.
Do we need individuals selling to get a panic washout?