Dow down 1000 points!!

sfca · Post by **sfca** » Thu May 06, 2010 10:08 pm

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 · Post by **joy_pathak** » Thu May 06, 2010 10:16 pm

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 · Post by **knocks_rocks** » Thu May 06, 2010 10:22 pm

More Rumors:

Appears the outrade was actually caused by iShares Russell 1000 Growth Index Fund and HOLDRs Trust IWF Equity GIP & HHH Equity GIP. 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.

joy_pathak · Post by **joy_pathak** » Thu May 06, 2010 10:24 pm

@ knocks rocks.

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

iasmath · Post by **iasmath** » Thu May 06, 2010 10:28 pm

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

joy_pathak · Post by **joy_pathak** » Thu May 06, 2010 10:33 pm

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 · Post by **cowpoke** » Thu May 06, 2010 10:34 pm

Did anybody get any ACN at $0.01? That would have helped make up for a challenging day.

knocks_rocks · Post by **knocks_rocks** » Thu May 06, 2010 10:43 pm

I have a feeling those 0.01 trades will be busted.

Lot of grown men shaking right now...

joy_pathak · Post by **joy_pathak** » Thu May 06, 2010 10:47 pm

@ knocks rocks.

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

goldorak · Post by **goldorak** » Thu May 06, 2010 11:18 pm

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!