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Friday, May 7, 2010

Explanation for US big plunge in stock market

The close to 1000 points drop in US market on 6 May was due to computerized trading and may not be due to trader'e error for some who tried to explain the plunge.

The staggered stop-loss levels set by investors/traders triggered the exacerbation of the quick plunge when the Dow Jones index fell to those levels but quickly recovered more than 50% of its loss.

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