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Archer81
05-06-2010, 12:40 PM
Because of the Greek riots and economic uncertainty in Europe. Also signs Portugal and Spain are facing similar issues Greece faced...

World is going to hell in a handbasket.

:Broncos:

Sassy
05-06-2010, 12:43 PM
Gold is up almost $20 ;D

Archer81
05-06-2010, 12:44 PM
Dow now down 500 points.


:Broncos:

SpringStein
05-06-2010, 12:44 PM
Now over 550 points - strange is that most domestic economic reports, even today, are up. We are tied into a global economic market.

Sassy
05-06-2010, 12:44 PM
Cool. Time to buy stock ;D

ColoradoDarin
05-06-2010, 12:45 PM
-653 panic selling and black box triggers

SonOfLe-loLang
05-06-2010, 12:46 PM
All hail the Euro.

Archer81
05-06-2010, 12:46 PM
-750...

Holy smack.

:Broncos:

ColoradoDarin
05-06-2010, 12:47 PM
aaaaand this is why a sold a good chunk of stock recently. Too much of a run up and due for a correction, add in Greece, Spain and Portugal to that and you have the recipe for a huge sell off. Once we broke support (11,000) it's a free fall for a while. I don't think we'll touch the March 09 lows, but it's not out of the realm of possibilities.

Archer81
05-06-2010, 12:47 PM
-850...

We have dropped below 10,000...


:Broncos:

ColoradoDarin
05-06-2010, 12:47 PM
-970

ColoradoDarin
05-06-2010, 12:49 PM
bounced back up to -690

Rabb
05-06-2010, 12:50 PM
it's because of the Orton rumor

ColoradoDarin
05-06-2010, 12:51 PM
it's because of the Orton rumor

LOL well it's back down -900 again, we must be trading him yet again?

Durango
05-06-2010, 12:55 PM
I'm watching this intently, which is also why I'm diverting from time to time to see what's going on in Broncoland here at the Mane. It's a little scary, but only a little. The European financial markets have been way over-valued for a while now. I exchanged Euros for dollars back in December because just about everyone saw a crisis brewing over debt in Portugal, Italy, Greece and Spain (the situation has now earned the ignoble, collective term PIIGS).

The belief is that Greece will default on it's debt, setting off a chain reaction in the other debt-laden euro countries; Italy, Spain & Portugal, but the indications now are that Greece will stick by the terms of it's bail-out agreement and make drastic domestic spending cuts, so the rebound in European as well as U-S markets could soon be a gold-mine in the paper money world of currency exchanges.

SonOfLe-loLang
05-06-2010, 12:59 PM
I'm watching this intently, which is also why I'm diverting from time to time to see what's going on in Broncoland here at the Mane. It's a little scary, but only a little. The European financial markets have been way over-valued for a while now. I exchanged Euros for dollars back in December because just about everyone saw a crisis brewing over debt in Portugal, Italy, Greece and Spain (the situation has now earned the ignoble, collective term PIIGS).

The belief is that Greece will default on it's debt, setting off a chain reaction in the other debt-laden euro countries; Italy, Spain & Portugal, but the indications now are that Greece will stick by the terms of it's bail-out agreement and make drastic domestic spending cuts, so the rebound in European as well as U-S markets could soon be a gold-mine in the paper money world of currency exchanges.

Unless they go back on the drachma. No matter what, the news won't be good. Turns out the Euro was kind of a crap idea :)

Archer81
05-06-2010, 01:01 PM
Unless they go back on the drachma. No matter what, the news won't be good. Turns out the Euro was kind of a crap idea :)


Suddenly the UK keeping the pound makes sense...


:Broncos:

UberBroncoMan
05-06-2010, 01:02 PM
I thought... I thought us copying European Socialism was a good idea though! At least that's what I keep getting told.

ColoradoDarin
05-06-2010, 01:03 PM
bouncing between -450 and -500, wonder where we'll end up at the close!

UberBroncoMan
05-06-2010, 01:04 PM
Suddenly the UK keeping the pound makes sense...


:Broncos:

Imagine if they hadn't. They'd be so ****ed right now considering what they're already dealing with.

SonOfLe-loLang
05-06-2010, 01:05 PM
Suddenly the UK keeping the pound makes sense...


:Broncos:

Yeah, they fought hard against that. The Scanadinavian countries (with the exception of Finland) resisted it too. It just doesn't make complete sense to have one value for lots of different economies.

Hogan11
05-06-2010, 01:05 PM
Tech glitch, it's not real

Sassy
05-06-2010, 01:06 PM
Gets down to 8,000 buy more stock ;D

SonOfLe-loLang
05-06-2010, 01:06 PM
I thought... I thought us copying European Socialism was a good idea though! At least that's what I keep getting told.

Please read up on why this is happening before you make non-sensical claims.

UberBroncoMan
05-06-2010, 01:12 PM
Please read up on why this is happening before you make non-sensical claims.

It's because the Athenians are pussies and the Spartans are being oppressed. Only a Macedonian can fix this.

SonOfLe-loLang
05-06-2010, 01:12 PM
It's because the Athenians are pussies and the Spartans are being oppressed. Only a Macedonian and fix this.

:)

Durango
05-06-2010, 01:13 PM
Unless they go back on the drachma. No matter what, the news won't be good. Turns out the Euro was kind of a crap idea :)

The effect on U-S markets will be good and bad at the same time. Good in that the dollar is strengthening in leaps and bounds. Bad in that a strong U-S dollar hurts exports. Good in that it makes imported stuff less expensive (as well as travel).

Greece has no real industrial base, so ultimately it's effect on world markets is only in the form of fear and panic of a widening financial collapse. The very second any one of these dominoes (Portugal, Italy, Greece, Spain) shows stability, the market rebound will be (a term I learned from my kids and here at the Mane) epic in the truest sense.

If you have any market savvy, you could potentially win, or lose, the market lotto over the next few months. I guarantee you financier Warren Buffet is setting himself up right now to make billions in the next few months.

ColoradoDarin
05-06-2010, 01:34 PM
Dow dropped 700 points in 15 mins, and gained 600 back over the next 20 mins. At the lows, it was down 998.50! Sitting down about 400 right now. Crazy day.

DenverBrit
05-06-2010, 01:44 PM
Should be a good year to visit Europe.

Hogan11
05-06-2010, 01:47 PM
Human error, someone pushed a B instead of a M entering a trade and triggered it all

Kaylore
05-06-2010, 02:00 PM
Dow dropped 700 points in 15 mins, and gained 600 back over the next 20 mins. At the lows, it was down 998.50! Sitting down about 400 right now. Crazy day.

That's a bunch of rich dudes adjusting their assets and others capitalizing on the low rates! Buy low, sell high.

Cito Pelon
05-06-2010, 02:17 PM
Good, I'll buy again.

Smiling Assassin27
05-06-2010, 02:21 PM
It's because the Athenians are pussies and the Spartans are being oppressed. Only a Macedonian can fix this.

Dude, everyone knows that the Arcadians are the smart ones....

TexanBob
05-06-2010, 07:35 PM
Nothing to see here. George Soros is just making a few more billion he can use to further fvck our economy. He probably got his puppet Obama's attention with that little show.

gtown
05-06-2010, 07:40 PM
It's all stop loss triggered trades. I don't use them anymore when I buy something with a high beta. My coworker had his whole account liquidated by automatic trades today.

Dedhed
05-06-2010, 07:47 PM
It's all stop loss triggered trades. I don't use them anymore when I buy something with a high beta. My coworker had his whole account liquidated by automatic trades today.

It was a good day to short the Euro on the FOREX.:thumbs:

I never use automatic orders, eventually you'll get stuck in a crazy market that will just destroy you.

gunns
05-06-2010, 09:49 PM
it's because of the Orton rumor

I believe there would have been a slight jump with that.

Broncojef
05-06-2010, 09:56 PM
Gets down to 8,000 buy more stock ;D

No, not really. Give it some time I believe you'll see DOW 3000 again. The greek problems they have is nothing next to what will happen when our hyper-inflated dollar goes belly up from all our debt and the financial burden this President and Congress are heaping on us. Greece at least have folks talking about helping them...once Spain, portugal and every other progressive state go down who in the heck will come to our rescue? Just as always it will be no one.

HEAV
05-06-2010, 10:19 PM
As Hogan stated it was a glitch.

NEW YORK (Reuters) - A spine-chilling slide of nearly 1,000 points in the Dow Jones Industrial Average, its biggest intraday points drop ever, led to heightened calls for a crackdown on computer-driven high-frequency trading.

The slide, which in one 10-minute stretch knocked the index down nearly 700 points, may have been triggered by a trading error. Major stock indexes eventually recovered from their 9 percent drops to close down a little more than 3 percent.

But the follow-through selling that pushed stocks of some highly regarded companies into tailspins exacerbated concerns that regulators can quickly lose control of the markets in a world of algorithmic trading.

High-speed trading, which uses sophisticated computer algorithms based on specific scenarios to automate transactions at speeds in the millionths of a second, now accounts for about 60 percent of U.S. equity volume.

"The potential for giant high-speed computers to generate false trades and create market chaos reared its head again today," Senator Edward Kaufman said in a statement.

"The battle of the algorithms -- not understood by nor even remotely transparent to the Securities and Exchange Commission -- simply must be carefully reviewed and placed within a meaningful regulatory framework soon."

Kaufman and Senator Mark Warner -- both Democrats -- said Congress needs to investigate the plunge, which at its deepest point wiped nearly $1 trillion off equity values.

And a House panel has slated a hearing on the causes for the market swoon for next Tuesday, with its chairman, Rep. Paul Kanjorski, urging the SEC to investigate as well.

The scary afternoon in markets came at a bad time for Wall Street, already reeling from accusations that it is a rigged casino -- a criticism stoked by recent civil fraud allegations against Goldman Sachs Group Inc (NYSE:GS - News).

The industry has been trying to stave off the Obama administration's calls for tough financial regulation, and the sell-off came as the Senate turned back a Republican effort to weaken a plan to set up a financial consumer watchdog.

SOME TRADES TO BE Canceled

Lending credence to the sense that the sell-off was exacerbated by technical errors, the Nasdaq stock exchange and NYSE-Arca said they would cancel certain trades that happened during the period in question.

But only trades in stocks that moved 60 percent up or down were covered by the cancellations, leaving some investors with potentially major losses on stocks such as Apple Inc (NasdaqGS:AAPL - News) and Procter & Gamble Co, which suffered lesser, but still significant, declines.

The U.S. Securities and Exchange Commission and Commodity Futures Trading Commission said they were reviewing the unusual activity and working with the exchanges to protect investors.

Citigroup Inc (NYSE:C - News) said it was investigating a rumor that one of its traders entered the trade, a spokesman for the bank said on Thursday. Citigroup, the third-largest U.S. bank, said it has no evidence that an erroneous trade has been made.

Several market participants cited speculation that a trader at Citigroup had erroneously placed an order for at least $16 billion in E-Mini contracts -- stock market index futures contracts that trade on the Chicago Mercantile Exchange's Globex trading platform.

But a source familiar with the situation said Citigroup had traded a total of just $9 billion of the E-Mini contracts, adding that that amounted to less than 3 percent of the $319 billion traded on the E-Mini on Thursday.

CME said the bank's trades in CME index futures appeared normal.

'SCREWED UP'

Earlier, sources told Reuters that the plunge in the Dow Jones Industrial average may have been caused by an erroneous trade entered by a person at a big Wall Street bank.

During the sell-off, Procter & Gamble shares plummeted nearly 37 percent to $39.37 at 2:47 p.m. ET (1847 GMT), prompting the company to investigate whether any erroneous trades had occurred. The shares are listed on the New York Stock Exchange, but the significantly lower share price was recorded on a different electronic trading venue.

"We don't know what caused it," said Procter & Gamble spokeswoman Jennifer Chelune. "We know that that was an electronic trade ... and we're looking into it with Nasdaq and the other major electronic exchanges."

A different P&G spokesman had said earlier the company contacted the Securities and Exchange Commission, but Chelune said that he spoke in error.

One NYSE employee leaving the Big Board's headquarters in lower Manhattan said the P&G share plunge lay at the center of whatever happened.

"I'll give you a tip," the employee said, speaking on condition of anonymity. "P&G. Check out the low sale of the day. Something screwed up with the system. It traded down $30 at one point."

A vicious market sell-off like Thursday's can be exacerbated when quickly sliding stock prices turn stop loss orders into market orders, meaning shares get sold at any price available.

WIDE SWINGS

NYSE Euronext (NYSE:NYX - News) said it was a safer place to trade than its electronic rivals -- who have been taking market share from it in recent years -- because it deliberately slowed down market making when it realized there was something extraordinary happening.

Triggered by unusual volatility in some stocks, NYSE brought in a "mini circuit-breaker" -- a liquidity refreshment point, or LRP -- to slow trading, which then jumped to other, fully electronic exchanges.

"It validates the decision to offer a hybrid market here where there's a human component married with the electronic," Louis Pastina, executive vice president of NYSE Operations told Reuters in an interview.

The NYSE's rivals advertise lower prices or faster transaction speeds.

The market plunge and especially wide swings in some individual stocks reignited some wider criticism of high-frequency trading, a strategy using lightning-fast computer programs to track market trends.

"We did not know what a stock was worth today, and that is a serious problem," said Joe Saluzzi of Themis Trading in New Jersey, a frequent critic of computer-driven high frequency trading.

Investors had already been on edge throughout the trading day after the European Central Bank did not discuss the outright purchase of European sovereign debt as some hoped they would to calm markets.

While the exchanges' move to cancel some of the most suspect trades may mollify some, there remained more questions than answers about the market's wild afternoon.

"The trouble is the exchanges aren't saying what caused the erroneous trade," said James Angel, a professor at Georgetown University's McDonough School of Business who specializes in market structure. "What they are saying is that it's not my fault, it was somebody else's fault."

(Additional reporting by Dan Wilchins, Roberta Rampton, Ann Saphir, Deepa Seetharaman, Phil Wahba and Maria Aspan; Writing by Christian Plumb; Editing by Gary Hill)

Dedhed
05-06-2010, 10:39 PM
As Hogan stated it was a glitch.


It's not a glitch. It's lazy firms, and their traders relying on automated technical systems to enter and exit trades without oversight.

The algorithms just read the price action and don't apply any common sense. The systems feel momentum and sell, they get to a point where they trigger a large quantity of stop loss orders (effectively selling more positions), then the algorithms sense further momentum, and the system repeats.

The rest is just PR damage control from said lazy firms trying to explain to their clients why their portfolio was wiped out.

ak1971
05-06-2010, 11:12 PM
'glitch'..gotta have something to blame it on for the popular press...this **** is so predictable its not even funny.

"Ever wonder why fund managers cant beat the S&P 500? 'Cause they're sheep, and sheep get slaughtered"

Sassy
05-06-2010, 11:16 PM
Buy silver and gold ;D

ak1971
05-06-2010, 11:19 PM
Buy silver and gold ;D

sold all that **** back in Jan...why would you want to buy anything at the top?