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Originally Posted by docicu3
A question for the financial professional among us.....
Is there a significant amount of money that continues to "short" these indexes.
In other words are there traders who are able to find significant volume that they are buying daily or essentially betting that the market will continue to fall. Is it enough at this point to drive the Dow or Nasdaq down....?
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Shorts didnt cause what happened today. This is capitulation in grand fashion. If this was merely shorts, it would be confined to certain sectors. If shorts were indeed the culprit, then there should have been some sort of recovery during the short ban over the last couple of weeks.
This is a classic case of hedge funds and mutuals selling anything and everything to pay skittish investors who want out. This is proven by typical flight to safety plays (long term treasuries and mortgage backs) also getting sold off. Most telling? When Big blue gets sold off for no apparent reason, houston we have a problem...and it aint shorts.