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Dow down 1000 pts..what the hell

Joy Pathak

Joy Pathak

Swaptionz
Joined
8/20/09
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Points
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I went to taco bell and came back and saw dow dropped 1000pts before bouncing back.


Dow touches below 10,000 - International Business Times


I heard on another forum a rumor about a program sending 16b futures instead of 16m but NYSE is saying nothing happened.

NYSE: No techical glitches as market declined - MarketWatch

P&G Glitch

CNNMoney.com Market Report - May. 6, 2010

P&G went down hard too probably because of the new federal investigation.

http://www.reuters.com/article/idUSTRE6444RW20100505?type=domesticNews&feedType=RSS&feedName=domesticNews


My buddy has cds for greece, spain, ireland, italy and UK, and puts on GS, DJX, QQQQ, SPY, and he is just loving this.
 
I'm hearing someone botched a trade at Citi
 
P&G went down for couple of seconds and then came back to almost breakeven. Looks like something wrong happened in automated trading somewhere.
 
Twitter update by MarketWatch:

Citi: No evidence of errant index trade triggering day's deepest declines
 
Everybody get ready for the algo witch hunt.
 
Andy said:
My source at Citi said nobody knows what's going on but they really enjoy watching themselves on CNBC.
Click to expand...

Everyone is pointing at Citi too now. Bloomberg TV just talked about it.

They just put out a statement that it wasn't them.

NYSE COO just said the super low price trades would be scratched most probably. ACN @ 0.01$ for example.
 
Millions of dollars have been lost and won. I cannot believe it's just a quant's dummy mistake. Is there any chance it's been planned?
 
Yes, the possibility exists. It's a big risk to try to shock the market by dropping a huge block and seeing what happens, but at least in concept you could have made a tidy sum in just a few minutes today if you knew what was going on and nobody else did.
 
Andy said:
This is all part of the giant vampire squid's plan to distract people attention away from their investigation. Now the press will talk about this "mysterious glitch" instead of "GS defrauding clients".
And there is a conspiracy for everything.
Click to expand...

Everybody is talking about regulation on quant trading and "slowing things down" now. Mark Fisher was just on cnbc and re-iterated that.

They are already giving nicknames to the day. "Flash Crash" is what i just heard somewhere.
 
Automated trading might have built up the momentum but the initial impulse comes from people jittery with the slowdown in China and the unraveling of Greece, Spain, Portugal, Ireland, Italy, Britain. The EU is in serious trouble and it looks like the euro hit 1.26 against the dollar today.
 
Canceled? So what happened if someone bought Accenture at a penny? Now they lose their one cent shares and get refunded next to nothing, when they could have made a bazillion ducks right then and there?

That's what I'd call bogus.

Anyhow, I think this reveals a very profitable exploit. If you have enough capital, just bomb a few blocks to a penny, then cover. Lather, rinse, repeat. It'd be sort of like a virtual pump and dump, because everyone's machines are running similar strategies, so if you set that positive feedback loop in motion...EHEHEHEHEHEHEHE.
 
IlyaKEightSix said:
Anyhow, I think this reveals a very profitable exploit. If you have enough capital, just bomb a few blocks to a penny, then cover. Lather, rinse, repeat. It'd be sort of like a virtual pump and dump, because everyone's machines are running similar strategies, so if you set that positive feedback loop in motion...EHEHEHEHEHEHEHE.
Click to expand...

Try it and see how far you get
 
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