You're wrong (archive)

Individual investors don't move the market that much to create a crash. How much do you have in the market? A few hundred thousand if you're lucky. That compared to several billion is nothing. Institutional investors are the ones that move the market in such huge steps. All the fund managers have been on edge to cut back on their stock holdings for a while now because they know prices are inflated. But no one wanted to move first because they knew that as soon as one large institution sold, many would follow and thus create a crash. This crash really started when Abby Cohen cut back on her holdings. That triggered a series of selling 2 weeks back and led to the continued selling by institutions this week which led to the crash. Margin calling had an effect also, but the amount of money dumped by individuals is PUNY compared to the selling by fund managers.

: This is not a good time to buy any stocks. The market is still on it's way down. Don't let little surges up fool you. Buy Bell Atlantic or a stock of that nature. The stock market right now is at extremely dangerous grounds. Let me explain why people are selling right now and bringing the market down. A majority of the people are on margin. Margin shot the market up to the sky a few months ago but now it is working backwards. Now that the market is crumbling people start getting calls asking for the money they borrowed on margin. Most people don't have this money so they have no choice but to sell at a loss. This will continue going on as people have no choice in the matter. I have extremely reputable sources that made me a crazy amount of money. They predicted all of this and when I got a message on my machine saying "Today all Hell breaks loose" I liquidated immediately. When the plumber your electrician and your weight trainer start giving you stock tips it's time to get out.

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