Hi Fred, did you see my previous post to IceShark? I am thinking that what happened to the Dow today is similar to what happened in October:
Message 5961408
What happened in October was even freakier, though. Big swings, 200 points up and down, and then the Dow would close within a fraction of where it closed the day before. It did that for several days. Right afterwards, of course, the Fed cut the interest rates between sessions, and the bear market was over. Once we read about the hedge fund debacle, I thought, in retrospect, the weird swings were caused by hedge fund computer programs "unwinding" derivative positions.
I don't know if you read last week's Economist, about the Internet stocks, but you really should take a look at the Goldman-Sachs Internet Index. I don't see how individual investors bid the Internet Index up so high so fast.
cbs.marketwatch.com |
