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macrotrader


Total Posts: 353
Joined: May 2009
 
Posted: 2010-05-06 21:11
What happened?

Open 10,862.22
Intraday Low 9,869.62

"Risk comes from not knowing what you're doing" Warren Buffett

ClopeMan


Total Posts: 328
Joined: Jan 2007
 
Posted: 2010-05-06 21:21

crazy shit! i don't get it either

twisted objective mind

macrotrader


Total Posts: 353
Joined: May 2009
 
Posted: 2010-05-06 21:25
Minutes before the drop I bought ATM S&P options, for fun mostly, and was up 75%. I wish I had traded 10 times the size.

PG dropped to 40$ at one point, now back at 60$.

"Risk comes from not knowing what you're doing" Warren Buffett

macrotrader


Total Posts: 353
Joined: May 2009
 
Posted: 2010-05-06 21:31
Whoa, Accenture (ACN) dropped to 0.01$!! That was a serious breakdown of the market system.

"Risk comes from not knowing what you're doing" Warren Buffett

Martinghoul


Total Posts: 700
Joined: Oct 2008
 
Posted: 2010-05-06 21:35
Well, if it's Accenture, it must have been something to do with Tiger, no? Did Elin tell her broker to sell her entire portfolio?

If this is not funny, I ask forgiveness in advance. It's been a rough day.

Insofar as I may be heard by anything, which may or may not care what I say, I ask, if it matters, that you be forgiven for anything you may have done or failed to do which requires forgiveness...

meteor


Total Posts: 165
Joined: Feb 2007
 
Posted: 2010-05-06 21:41
check where apple traded...

malsain de corps et d'esprit

knocks_rocks


Total Posts: 161
Joined: May 2006
 
Posted: 2010-05-06 21:42

Rumors flying everywhere, have heard the following:

1) C program desk sent $16B futures order, instead of $16MM

2) European Bank/Fund blew up.

What else? Exciting times, any new bodies washing up on the shore?


"...because money won is twice as sweet as money earned."

joy_pathak


Total Posts: 123
Joined: Mar 2010
 
Posted: 2010-05-06 22:03
my buddy has cds for greece, spain, ireland, italy and UK, and puts on GS, DJX, QQQQ, SPY, and he is just loving this.

@ knocks rocks

Anything out in the public on the C program ? Or is it really just a rumor?

I went to Taco Bell and came back and turned on my laptop and bam..down 1000pts.


http://www.marketwatch.com/story/nyse-no-techical-glitches-as-market-declined-2010-05-06-1535580?siteid=bnbh


sharpend


Total Posts: 274
Joined: Aug 2007
 
Posted: 2010-05-06 22:05
I'm going to be on CBOT floor on Monday. Missed it by that much.

knocks_rocks


Total Posts: 161
Joined: May 2006
 
Posted: 2010-05-06 22:05

Well rumor from some brokers. So like a notch above Yahoo Msg Board lol.

Does your buddy need another buddy?


"...because money won is twice as sweet as money earned."

sfca


Total Posts: 875
Joined: May 2004
 
Posted: 2010-05-06 22:08
I had already sold out of the market and all my money was in cash.  Of course, it was because at work we are changing the compliance requirements and moving money between brokerage accounts.  Not because I'm a brilliant economist.  Much better to be lucky than good. 

joy_pathak


Total Posts: 123
Joined: Mar 2010
 
Posted: 2010-05-06 22:16
P&G technical glitch.

http://money.cnn.com/2010/05/06/markets/markets_newyork/index.htm?hpt=T1&iref=BN1

Also just heard someone at Citi possibly messed up? Rumors.

knocks_rocks


Total Posts: 161
Joined: May 2006
 
Posted: 2010-05-06 22:22

More Rumors:

Appears the outrade was actually caused by iShares Russell 1000 Growth Index Fund and HOLDRs Trust IWF Equity GIP<GO> & HHH Equity GIP<GO>.  These both traded at ZERO... Index ETF fat fingers triggered index arb orders I'm being told by equity guys.  All about as clear as mud, but clearly some tech glitch occured.


"...because money won is twice as sweet as money earned."

joy_pathak


Total Posts: 123
Joined: Mar 2010
 
Posted: 2010-05-06 22:24
@ knocks rocks.

That's way to specific to be a rumor....


iasmath


Total Posts: 38
Joined: Feb 2010
 
Posted: 2010-05-06 22:28

What the hell was that???!!!

Apocalipse came and went away few minutes later...

Only see three possible reasons: a cascade of stop loss, panic or both!

Don't think clearly some tech glitch occured


"When we pull back the curtain, we see that the wizard is just a man, but also that the man is a wizard"

joy_pathak


Total Posts: 123
Joined: Mar 2010
 
Posted: 2010-05-06 22:33
Just heard another rumor from two people.

Trader from Citi screwed up. Pressed wrong tick.


Edit:

Got a twitter update- Citi: No evidence of errant index trade triggering day's deepest declines

cowpoke


Total Posts: 92
Joined: Jul 2009
 
Posted: 2010-05-06 22:34
Did anybody get any ACN at $0.01? That would have helped make up for a challenging day.

knocks_rocks


Total Posts: 161
Joined: May 2006
 
Posted: 2010-05-06 22:43

I have a feeling those 0.01 trades will be busted.

 

Lot of grown men shaking right now...


"...because money won is twice as sweet as money earned."

joy_pathak


Total Posts: 123
Joined: Mar 2010
 
Posted: 2010-05-06 22:47
@ knocks rocks.

Yeah, NYSE COO just said they most probably will be scratched.

goldorak


Total Posts: 443
Joined: Nov 2004
 
Posted: 2010-05-06 23:18
The typical thing happening on such event is the following:

you buy PG @ 40
1' later you sell PG @ 50 with a 25% gain...
60' later your broker informs you an irrevocable decision has been made by NYSE and your buy orders is busted. You are short a stock worth 60... you are now -20%...

In these cases: buy, but never sell!

If you are not living on the edge you are taking up too much space.

knocks_rocks


Total Posts: 161
Joined: May 2006
 
Posted: 2010-05-06 23:21
So how did the quant funds make out? Any dead bodies out there?!

"...because money won is twice as sweet as money earned."

iasmath


Total Posts: 38
Joined: Feb 2010
 
Posted: 2010-05-06 23:24
I really used to think that bids/asks too much out of market price wouldn't pass through as an ordinary order and that the exchange would do something to ensure it's not a human mistake...

"When we pull back the curtain, we see that the wizard is just a man, but also that the man is a wizard"

granchio


Total Posts: 1466
Joined: Apr 2004
 
Posted: 2010-05-07 01:02
probably size, not limit, was the error.
and maybe size was broken up by algo, so sanity rules won't catch it.
it starts moving the market, and the trend following machines do what they do best: follow the trend.
welcome to the new world.

PS just read on reuters that nasdaq is cancelling all trades between 2.40 and 3.00
any noises from CBO?

"Deserve got nothing to do with it" - Clint

cowpoke


Total Posts: 92
Joined: Jul 2009
 
Posted: 2010-05-07 01:12
All those computers jabbering at light speed clearly have introduced new dynamics. Makes me wonder if there's an instability that got triggered by a run-of-the-mill goof somewhere. Some academics will have a grand time with this "emergent behavior".

What turned it around? It turned when the Dow hit 10,000 - was that a coincidence?

MrMagoo


Total Posts: 191
Joined: Jan 2008
 
Posted: 2010-05-07 01:30
I miss 1987 type of crash.

Today its just about frontrunning algos.

"One who says it can't be done should not interrupt the person doing it."
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