by ridgel » Sat May 08, 2010 4:29 am
The thing that's odd about Thursday's panic is the quick recovery within 15 minutes from a thousand point plunge. How many traders look at a market that just fell 10% fifteen minutes ago and start bargain hunting? About zero I would guess. Nothing other than government intervention (plunge protection team) makes sense. Anyone care to defend the computer algorithms? Maybe they were just looking out for humanity and so forth? Zeroth law sort of thing?
The thing that's odd about Thursday's panic is the quick recovery within 15 minutes from a thousand point plunge. How many traders look at a market that just fell 10% fifteen minutes ago and start bargain hunting? About zero I would guess. Nothing other than government intervention (plunge protection team) makes sense. Anyone care to defend the computer algorithms? Maybe they were just looking out for humanity and so forth? Zeroth law sort of thing?