White Monday is a nice thought, I will hold on to it. Hopefully it manifests. It is my thought that though the government is not the brightest, and the sheeple are not the wisest, the fact the world is unifying to address this issue is a strong signal to the rest of us. Even the village idiot if combined with other village idiots can eventually create enough of a collective consciousness though deductive reasoning to create a positive outcome.
What the heck is a hollow red candle??? There is no such a thing. It is either a white (hollow) candle or a red candle, or might be a doji (breakeven) but there is no hollow red candle...
A close up from the open, but down from the previous close. EG, a rally from a gap-down open that doesn't get back to the previous session's close.
"It seems that the major catalyst for this selling is the fact that the newest large banks primarily J. P. Morgan, Goldman Sachs, and possibly Morgan Stanley as well -- have issued massive margin calls to hedge funds and other professional traders who use these banks as prime brokers. These calls were not issued because of market losses, but more because the banks arbitrarily decided that they wanted their customers to use less leverage. Margin rates as low as 15% for broker dealers were raised to 35%; hedge funds who had been used to operating on high leverage were told that they had to bring accounts up to a much larger percentage of equity. In this illiquid environment, where all manor of exotic securities literally have no bids, the only place to raise the cash to meet margin calls was to sell stock. That is what really set this market over the edge -- as the first notice of these calls were issued on October 2nd and 3rd. There was something of a grace period to meet the calls, but funds realized they weren't going to be able to meet them other than by selling stock. There are rumors that the most massive of the calls are due Monday (October 13th). If so, this market could continue to decline through then. There doesn't seem to be any reason for this increase in margin. The most benign one is that the banks became overly worried that their prime brokerage customers could cause problems with leverage. A more sinister reason revolves around the fact that the banks issuing the calls will likely wind up the owners of some excellent inventory (relatively illiquid preferreds, bonds, etc., which are being sold at prices well below theoretical value). They are in effect confiscating from their prime brokerage customers." courtesy redoption/macmillan weekly... any comments? :eek:
The weather tomorrow will be sunny, with periods of partly cloudy skies, it may also rain and the probability of snow is high and temperatures will range from -40 to 115. What can I say sam? Do not look for reasons in a chaotic situation. It'a panic now.
description of candle coloring as implemented by stockcharts.com http://stockcharts.com/commentary/mailbag/mailbag20000809.html
Its interesting that wherever I read, traders and investors are expecting a huge snap back move. If everyone expects it than perhaps it could come true, but often the contrarian wins. I will be happy with a flat day. From what I have read, do not expect any major g7 announcement till wednesday. I think the best news we can hope for is that Morgan Stanley gets something done. That will hold the markets for another day in my opinion. Needless to say, scary times. Looks like the future markets are closed tomorrow. With them pointing down after Friday, perhaps some imbalances will come in and attract buyers.