Top 100 hedge funds usually hire PhDs in mathematics, physics and computer science from MIT. Well all of those MIT students are taught from the same professors, so for that reason pretty much all of them have the same knowledge and the result of that is that they build the same type of algorithms and systems for trading in the market. So the result of that is that they all pretty much go the same way and the result of that is yesterday’s 1,000 points drop. The geniuses have failed again and then walked away unharmed with no consequences. I am sure they have lost money too, but it was not their money, it was their investor’s money.
This is just my humble opinion.
I thought it was because someone sold 16 billion when it should have been 16 million? OOPS my bad! 
Some people lost money yesterday but a lot of people made a lot of money too thats fur shur
I’m glad I didn’t go to MIT 
This wouldn’t have happened if it was Cornell Ph D’s.
Go Big Red!!!
Here you go:
Origin of Wall Street’s Plunge Continues to Elude Officials - NYTimes.com
Makes for some interesting reading!!!
Well I have to admit that FOR ONCE I was on the right side of the swing!!! Now there’s something that does not happen too often!!! LOL!!!
Regards,
Dale.
Congratulations Dale! It’s hard not to make money on a day like that. Even I made some!
Well: it’s not THAT easy!!! As I said: NORMALLY I’d PROBABLY have been on the wrong side. That said: at least THIS time around I would have only been stopped out (I learned the merits of using stops the hard way a while back)!!! Unfortuanately though: I was not here to watch the swing i.e. when I got back home it was already all over and the prices had already retraced somewhat so my little bit of profit could have been more. But: this time around I closed out all my positions and ‘took the money and ran’ i.e. extraordinary events like that don’t come around too often and in most of the books etc. that I’ve been reading of late I’m more and more finding that taking extraordinary profits when they’re on the table is prudent.
To be VERY honest: when I opened my charts I thought there was something WRONG i.e. I had to check at two other brokers just to verify that I was not seeing things!!! What I’d like to have known is if the move was straight down or not and, if so, I wonder if stops were indeed honoured by most brokers or if there was massive slippage involved.
Those movements will, however, cause problems for those of us that trade breakouts i.e. it is my opinion that one can not use the highs or the lows made on that day because they don’t REALLY indicate market sentiment nor are they technical levels. I could be wrong though. Actually: some input from others on my opinion would be nice here.
Regards,
Dale.
Well, you can bet a move like that doesn’t happen unless your on the inside. I’d suspect a Soro’s like move from the 90s… Someone made alot of $$ on thursday… then look at the stopping volume, that was pure buying and that is BIG money… So all in all a big setup, panic crash and buy at a discount…
I can’t complain, I was holding a U/C long from .9976 with a TP of 1.0700. I was expecting another month or so before it rose from the 1.0300 level up, but did it all with-in 15 mins, and then I got short… haha… once in a while you get lucky