Quote:
Originally Posted by Riot
All those 400 point swings, over several days, a few weeks ago were simply computer-generated automatic buy/sell stop-loss orders, were they not?
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I don't think they were stop orders, hell I didn't even know people still enter those.
I think it's a couple of things, there's still a sense that there's a lot of money on the sidelines. So with less money/orders, there is less liquidy/resistance both ways in the market.
In continuation of that, when there is less volume (summer months) it seems like the market is very one directional and it sometimes snowballs.
Then there is the whole trading system/platform, which like I said in my previous post has turned the whole thing in to a big video game. No longer can specialists stablize markets/stocks. They have over regulated the whole thing so badly and those are some of the affects.