Did Stock Traders Freak Out On Freaky Friday?
Traders caused/experienced a mayhem in the stock markets Friday, selling stocks in almost all sectors including financials, transport and technology. The Dow plunged 220 points to close at 11842.12, and was down 4% for the week. It also just so happened that Friday was the Triple Witching day, when futures and options expire in the stock markets, so a lot of adjustment – aka noise – took place. But then again, people are seeing many reasons to short stocks, whether large or small cap ones. There are the usual (unwelcoming) predictions of further bank writedowns, dividends being slashed etc around the corner, plus, two largest bond insurers, MBIA (MBI) and Ambac (ABK), got their credit ratings downgraded by Moody’s on Friday. Hang on tight for the rollercoaster ride and keep your stops in place.
Related Questions
- Different type traders have different opinions about stock sentiment simply because some of them trade daily and some of them just once a year. How do you separate these totally different types?
- Why would someone prefer the movie Freaky Friday (2003) over the book?
- Do `speculative traders increase Stock Price Volatility?
