Okay here is a theory for comment.
What if a fund is cashing out for tax purposes because today is the end of the fiscal year?
In other words, window dressing?
If so, tomorrow or Monday they start buying it all back.
If this is true and they are on the West Coast of US, then the dumping will stop in about a half hour.
What if a fund is cashing out for tax purposes because today is the end of the fiscal year?
In other words, window dressing?
If so, tomorrow or Monday they start buying it all back.
If this is true and they are on the West Coast of US, then the dumping will stop in about a half hour.
Question, would the fund, or business, or whoever is dumping before the fiscal year end buy back the following day? Can they wait until after 5:00PM or do they need to wait until midnight?
I think there is definitely some validity to this theory.
Bitchick:
I believe that your leg is being pulled - there is no extension of the fiscal year... most of the time the end of the fiscal year is going to be September 30 for those businesses using October 1 as the beginning of their fiscal year.
I know of no exceptions to this, and if someone is describing an exception, then cite the source - or explain.
I do think that companies can set their own fiscal year, and ending the year in the middle of a week would probably not be the standard practice, so I would believe that there is some truth to this idea.
Per Wikipedia:
Quote
Some companies choose to end their fiscal year on the same day of the week, such day being the one closest to a particular date (for example, the Friday closest to 31 December).
Last year big sell off on Bitstamp also occurred at end of fiscal year. Oct 1st was the day. Price went from $126 to $85
Then the huge rally started to 1250!!!!!!
Can it really be that simple to figure out? Really?
To the moon!!!!
The big sell off was attributed to silk road being shut down but maybe that wasn't the real reason for the sell off.
We like to attribute everything to news, but lately we have seen that news, even amazing news, doesn't move the price as much as we thought. It could have just been a strange coincidence. I am interested in seeing how this plays out. We should know by Monday at least.
Looking at last year it, the price recovered to 124 in a few days, sat there for a week then boom!
