
On the other hand, in the midst of thin volumes in the summer, it would be very convenient for a more serious "last shake" on the part of big stockbrokers. This is the situation where large market operators manipulate for the last the market, sending the index strongly opposite the expectations of individual investors direction to rob the stops.
In this way, the mass investor, who is most likely short on the index, is forced to close down its short positions, which creates an additional upward momentum for the market. This impulse is being used by large stock traders to sell at higher prices to those who were short before, but are becoming the main reason for the index's rise.
On the other hand, big operators may think the following way. If everyone expects the index to adjust by 10%, it would be better to first see growth before the adjustment.
In that case, when the index is down by 10%, it will not be far beyond its current levels. However, investors will feel much more comfortable buying the index, because they will feel that the correction has passed.
Or, many investors follow Buffett's advice that the best investment for individual investors, and never lost in history, is buying an index fund based on the S&P 500 but with a 10% adjustment.
What could, however, happen to investors buying after a 10% adjustment? Again, they are subject to manipulation by large stockbrokers, and the potential fall in the index will go further, and why not see a test at the psychological level of 2,000 points?
No comments:
Post a Comment