Dec

29

Up Crashes, from T.K Marks

December 29, 2010 |

Apropos of this derivative-centric world, I'll never forget the first time I was asked, "what might happen if there were a crash UP?"

Bill Rafter writes:

There were "up crashes". During the flash crash in May there were some thinly traded ETFs that had big range days with the activity being on the upside. I believe that was because they were involved in some long/short strategies such that when the holder dumped the long side, he covered the short ETF driving it up. 


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