You have too much faith in these guys
yeah- do note that a lot of symbol/underlying are still under review at multiple exchanges/venues and will possibly be busted under clearly erroneous policies.
A dramatic drop in Procter & Gamble(PG) looks like the smoking gun. The stock went from $60 at around 2:45 pm ET to plunging below $40 in moments. The Dow Jones Industrial Average, which was already down triple digits, sank another 600 points in less than 15 minutes right around that time. That doesn’t happen unless someone made a huge mistake," a trader that declined to be identified for this story told TheStreet about the P&G trade. The same trader said the latest speculation was that Citigroup(PG) was the firm behind the wrong trade, mistakenly putting in a 15 billion sell order, instead of a 15 million one, but the company would not confirm or deny that. “At this point, we have no evidence that Citi was involved in any erroneous transaction,” the company said in an official statement to TheStreet. Bill Stone, chief investment strategist at PNC Wealth Management, described the fall in P&G as “a plunge and a half” and though he couldn’t comment on whether a trading error had occurred, he said the action looked unusual on the surface. “It was a very odd thing to happen to a staple like that,” Stone said. “That’s the kind of safe haven stock you expect to stabilize the market.” The New York Stock Exchange wasn’t immediately available for comment on the move in P&G. Nor was a spokesperson for P&G. The markets rebounded in the last hour of trading, however, and while the Dow still finished the day down more than 300 points, that’s a lot better than the plus 1,000-point drop it faced earlier in the session. At the same time, although the depth of the drop may have been exacerbated by a trading error, the forces behind the selling were very real, market observers said. “This is panic trading across the board,” said Paul Mendelsohn, chief investment strategist at Windham Financial, when contacted in the midst of the sell-off. “It’s not just stocks. It’s panic selling in the euro, in U.S. treasuries, gold buyers, everything. You could see it building all day.”
The ironic part is the same options I trade and made unprecedented profits from probably caused this black swan move. Thing to the readings on options and how american style can be exercised at any point, you can see why the market moved the way it did…
Rumor on AAPL – I hear similar things about AAPL – the trader/machine meant to trade at $250 but entered $200.
forget P&G…look at accenture’s chart!!
accenture penny sales out now. This going to be called back sorry timotimo you should ahve tried to cash out and move the funds overseas asap.
Hacker attack???
marcus phoenix Wrote: ------------------------------------------------------- > Hacker attack??? hmmmm… Seem to be too many trading errors. What are the chances of all these MAJOR gaffes happening on one day. Could it have been one prop firm f*******g up all day? Maybe someone did hack into an exchange.
I wonder how many poor unsuspecting retail investors go their stop losses triggered today only to have their shares scooped up.
Seems like a great time to be holding some VXX and VXZ, esp. to hedge equity exposure. Too much instability in the financial sector and international political climate right now; volatility futures near 52-week low; and personal thesis that markets will continue to be rocky for a while at least in the short/mid-term. Thoughts?
here are the four major drops of the day- http://blogs.wsj.com/deals/2010/05/06/four-mega-drops-of-the-flash-crash-sam-adams-goes-flat/
Maybe someone f**ed up today, but this Greece thing is not going away anytime soon. Check out this chart. http://www.nytimes.com/interactive/2010/05/02/weekinreview/02marsh.html
marcus phoenix Wrote: ------------------------------------------------------- > I wonder how many poor unsuspecting retail > investors go their stop losses triggered today > only to have their shares scooped up. The market bounced back so violently and so fast without much retracement during the last 14 months, that you could bet your house that many had stop orders. Probably trailing stop orders because the market kept going higher and higher. In their case, at least they got hit making a profit. I feel for those who got in the last 2 weeks and had a stop order.
Stop orders aren’t a magic risk reduction bullet.
I don’t buy this at all. Someone is trying to distribute and I believe its UBS securities 1) European international bank in the middle of heavy greece tension. If any bank is going to sell off first, its going to be the big one in europe 2) Check this link http://www.reuters.com/article/idUSN0626795620100506 How convenient a week ago they hire an independent broker to help sell 3) There so dam diversified and holding every security thats it hard to pinpoint them selling. However, the key distribution points have got to be around 10:30-11:00 and 1:30 pm-2 est. Its not the falls from 2:30-3. Lots of their top holdings show distribution like volume patterns at these times The swedes are known to have prudent investment standards with their currency being a carry safehouse and what not. Theres no way uncle sam will let these fishheads muck up our great rally
I don’t really buy the whole Citi trader market meltdown explanation. How does one person enter multiple different sell orders at 1000x the actual order size? Everyone was almost too quick to point the finger at Citi.
Wow, NASDAQ canceling trades. Hope you don’t get screwed timo http://www.reuters.com/article/idUSTRE6456QB20100506
numi Wrote: ------------------------------------------------------- > Seems like a great time to be holding some VXX and > VXZ, esp. to hedge equity exposure. Too much > instability in the financial sector and > international political climate right now; > volatility futures near 52-week low; and personal > thesis that markets will continue to be rocky for > a while at least in the short/mid-term. Thoughts? these are a slow death if you don’t time it exactly. i know from experience, sold out of VXZ late last year. the tracking error is huge.
http://www.zerohedge.com/article/day-market-almost-died-courtesy-high-frequency-trading Interesting piece from ZeroHedge. He seems to believe that all of the HFT, High Frequency Traders, all went on the same side of the market at the same time which caused a massive drain of liquidity from the market over the 5 minute free fall. The “fat finger” explanation is a freaking joke