Silicon Investor (SI) -- The First Internet Community

STOCKTALK

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.

Strategies & Market Trends : Piffer OT - And Other Assorted Nuts -- Ignore unavailable to you. Want to Upgrade?

To: Lost1 who wrote (26161)	4/4/2000 8:09:00 PM
From: Jorj X Mckie	Read Replies (1) \| Respond to of 63513

Now that the market is closed and I can't do anything about it....the fear sets in.....

To: Lost1 who wrote (26161)	4/4/2000 8:57:00 PM
From: EL KABONG!!!	Respond to of 63513

Lost1, It seems unlikely that average investors would all pull the trigger within the same 30 minute time span I saw an interesting article about this phenomena some time ago. If I remember correctly it had something to do with margin calls that occurred recently (maybe within the past year or two). Anyway, the story was that margin calls hit the market at around 10:30am (9:30am during winter) due in no small part to the 3 hour time difference between NYC and California. Apparently, west coast brokers make their telephone calls starting around 7:30am (west coast time). As some investors cannot meet the call (in particular those invested in the high flying techs), we see the price drops starting around 10:30am NY time. I guess that it's implied that west coasters have a disproportionate amount of margin calls when tech prices start to decline. Given that so many tech firms are located in northern California, I guess that may be a valid assumption. But what do I know... KJC