SI
SI
discoversearch

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor.  We ask that you disable ad blocking while on Silicon Investor in the best interests of our community.  If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.
Technology Stocks : JDS Uniphase (JDSU)
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  
To: Hank Stamper who wrote (9929)4/30/2000 2:33:00 PM
From: Gerald Walls  Read Replies (2) of 24042
 
2. I found it interesting--perhaps I don't understand properly--that people think the drop in the price of JDSU and certain other stocks are due to Soros selling. I thought I read in the news reports that Soros had to sell because of the drop. I.e., the stocks got weak and he was forced to sell to cover. You can't say that the final result (Soros selling) is the cause of the original action (lower prices).

You're overlooking that this is a continuous process and not a discrete event.

Think of it as sort of a "margin squeeze" or "reverse-short squeeze". Those who were either on margin or who were following rules to cut loses were forced to into the selloff, causing the selloff to worsen and triggering another round of margin calls or stop loss selling. When these people were wiped out and had no more shares to sell the selling pressure (exacerbated by these very people) lessened and the bargain hunters' buying, no longer overwhelmed by the "margin/stop loss squeeze", started the rally.
Report TOU ViolationShare This Post
 Public ReplyPrvt ReplyMark as Last ReadFilePrevious 10Next 10PreviousNext  

HomeMailHotSubjectMarksPeopleMarksKeepersSettings
Terms Of UseContact UsCopyright/IP PolicyPrivacy PolicyAbout UsFAQAdvertise on SI
© 2025 Knight Sac Media.  Data provided by Twelve Data, Alpha Vantage, and CityFALCON News