Today's Selloff (No Drama Necessary)

Discussion in 'Trading' started by MKTrader, Nov 14, 2008.

  1. So this afteroon's last-minute selloff was due to hedge funds cashing out holdings before a Saturday deadline--sort of like window dressing in reverse.

    The significance? Zero in the long-term scheme of things.

    When these late selloffs occur, a bunch of folks here act like it's some monumental event that has predictive power over the coming months. However, when a last-minute rally occurs, it's just a meaningless event "due to buy programs triggering together" or everyone's favorite scapegoat, the PPT.

    The majority of time, neither late rallies nor selloffs mean much of anything...unless inside information was leaked. We're still seeing fund redemptions, but the data shows they've peaked. Today was obviously different b/c of the deadline.

    OK, now we can go back to discussing meaningful trading topics like the coming food riots.
  2. Excellent post.
  3. Obvious action , huh? Let me ask you simple question [no drama]…did you went all-in times 100 leverage at the close?
  4. I didn't went nowhere with no one.

    Your question has nothing to do with my post, though.

  5. That was part of the reason.

    Never the less, closed near the lows.

    It was a failed rally.

    Where will the pysc. of the "Market" be on monday morning?
  6. you've have not gotten a clue

  7. look at the time of the exact dump at 3:50/3:51 today. now look at these comments at the exact time on reuters

    3:50pm The Italian prime minster berlusconi said nothing major should be expected to come out of the g20 this weekend.

    Maybe a coincidence, u never know in this thin market
  8. Pekelo

    Pekelo predicting the selloff. When I talk, the market listens...

    Otherwise it was just a gapclose and continuance of weakness. What is so hard to get about it???
  9. pcvix


    MKTrader, can you elaborate on the nature of this deadline?


  10. zwib


    I understand what you are saying MKTrader. However, I think it kind of messes with the psychology and the trends in the market.

    We were bouncing off of the lows, however because of the late day selling that upward trend was broken. IMO, that messes with the uptrend and the psychology and makes it much less likely that the upward bounce will continue. This, in turn, makes the sell off significant and not just some random event.

    Also, if you (bali_survivor) are going to say something like:

    "you've have not gotten a clue"

    and that is all you post, please do not post it. That makes me so ANGRY and you sound so EXTREMELY DUMB if you are not going to explain what you are talking about. It is childish. It's like say, "nope you got it all wrong and I got it all right" and then not say why. It just shows how childish you are.
    #10     Nov 14, 2008