Tuesday, February 27, 2007

Reason # 20309434 why you shouldn't day trade

I don't think to many day traders foresaw this today

Read Yahoo for a recap of what happened today.

My response: I think it is very hard to blame this whole thing on expectations for a slowdown in growth. There was a large market panic component (technical language: contagion) associated with the drop off. For example, it is very hard to explain a 200 point drop right at 3pm on market fundamentals. Rather, it is triggered by computers programmed to sell once the index falls below a certain level. Still, it makes for a headache heading into tomorrow.

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