Part of the problem:
"If investors want to get their money out of a fund by the end of the third quarter, a 45-day redemption notice period would mean that withdrawal requests need to be in by the middle of this week.
Sentinel Management Group Inc., a firm that manages cash for institutional investors including hedge funds, roiled markets on Tuesday after telling clients that it will halt redemptions to avoid selling securities at deep discounts.
Some of the hedge fund managers who are worried about possible redemption requests from their clients could be contacting Sentinel to ask for their cash back." Link.
I would caution traders about Wednesday, especially if you are short (although tonight looks hard down and I have been trading it short: NQ 1898 anyone?). Normally, Op-Ex Wednesdays are up, but this week started with two down days. Maybe one more low overnight. If we rally tomorrow, it might only be a one day event, so don't get all excited.
"If investors want to get their money out of a fund by the end of the third quarter, a 45-day redemption notice period would mean that withdrawal requests need to be in by the middle of this week.
Sentinel Management Group Inc., a firm that manages cash for institutional investors including hedge funds, roiled markets on Tuesday after telling clients that it will halt redemptions to avoid selling securities at deep discounts.
Some of the hedge fund managers who are worried about possible redemption requests from their clients could be contacting Sentinel to ask for their cash back." Link.
I would caution traders about Wednesday, especially if you are short (although tonight looks hard down and I have been trading it short: NQ 1898 anyone?). Normally, Op-Ex Wednesdays are up, but this week started with two down days. Maybe one more low overnight. If we rally tomorrow, it might only be a one day event, so don't get all excited.
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on Tuesday, August 14, 2007 at 8/14/2007 09:04:00 PM.
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