Quote:
Originally Posted by MalcPow
For me, it's tough to know what the real levers are in something like this. While there was a huge dip, glitch or otherwise, automated systems I am sure played a significant role in the market activity that restored some relative order. If we're in a human-only system of some kind, I'm not sure what happens if a glitch knocks things down like that. Do we stew down there for a longer period of time? Does this stretch out for a few days as people try to figure out what happened, and some people get skittish with more selling? It's tough to say.
As others were mentioning earlier in the thread, a sell off made a lot of sense given the current state of the markets. Things kind of worked yesterday, even if there was a really weird half hour or so.
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The humans were seeing the incredibly stupid prices and buying as rapidly as they could. And no auto-algorithm would randomly buy during a downturn, only computers with preprogrammed buy orders would fire under those conditions. No one builds a computer to be the lone wolf betting against all the computers betting for failure.