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Will the market crash again on today's close?

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October 10, 2008 – Comments (1)

The explanation I saw said that the closing crashes are caused by mutual funds selling on the close to raise money needed for redemptions.  That explanation makes sense to me.  If so, then closing crashes should continue for a while because of the panic among investors. With this week about to be the worst week for the averages in history, I would expect the sentiment to continue for some time.  This forced selling will exacerbate the decline.  Anybody care to hazzard a guess as to when or where the eventual bottom might be?

1 Comments – Post Your Own

#1) On October 10, 2008 at 1:23 PM, Bankwatcher1 (25.94) wrote:

We will hit bottom when Washington decides to tell the SEC to re-instate the uptick rule. "IF" the Government was really trying to "help the markets"; why is it that the Commander-in-Chief can't tell a Government run agency to re-instate the rule? Makes you wonder who/whom is really profiting from this decline. Food for thought.

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