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Strategies & Market Trends : 2026 TeoTwawKi ... 2032 Darkest Interregnum
GLD 368.31+0.6%Nov 7 4:00 PM EST

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To: Snowshoe who wrote (162215)9/4/2020 2:31:15 PM
From: Snowshoe1 Recommendation

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frankl

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This ‘Nasdaq whale’ may have helped trigger the stock-market’s brutal rout
marketwatch.com

Last Updated: Sept. 4, 2020 at 1:38 p.m. ET

The trigger for a seismic stock-market slump Thursday and Friday that has erased weeks of gains for a frothy U.S. stock market, may have been embattled investment firm SoftBank, according to a report by Financial Times (paywall).

The report from the London-based financial paper says that Japanese investing conglomerate SoftBank has been loading up on options in technology stocks over the past several months that contributed to the rally and may have been the market vulnerable to the punishing declines that equity markets have been experiencing over the past 24 hours.

The FT, quoted one investment banker as describing the options purchases that SoftBank made as “dangerous” bets on the market.

Experts have said that the boom in options bets in recent weeks helped to make the market more susceptible to massive pullbacks like those playing out on Friday and in the previous session.
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