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| Ever hear of the floor traders (perhaps other pros) "Gunning the stops?" If they know there's a bunch of stop-loss orders lined up nicely in a vertical row they can start gunning for them and a kind of chain reaction occurs.
I would guess there's less gunning the stops than many think. Just so happens when things get scary a lot of people move their stop loss closer to the market price.
This may explain, in part, todays limit down moves.
Too, it's for certain, the markets were extended/overbought and ripe !
I am not very alarmed.
Don | |
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Gun'in the stops
