The reason for the big drop at 2:47 p.m.

[James48843]

Today's wild ride- led to an interesting P&F chart today. Notice that the entire row of "O"s filled in, and then STOPPED- exactly at the point where it was supposed to.

How about them apples? ? ?

View attachment 9316

Now- the next question is "Is that it? Are we ready to go back higher again?"

My thoughts are no- we're not done. We reached WAaaayyy down for a minute, and then shot back up. But as the volume has only shown a fraction (see down near the bottom on the volume chart) we still have a lot more trading to do in the negative portion of this wave down.

I'm sitting on the sidelines- and I believe it will settle back down over the next few days towards the low end here, before deciding which way it wants to head.

I'm still seeing hard resistance at 1070 level. That proved a good area today- the low was
just below that at 1065 before the rubber-band kicked in and propelled it back up. But I think we'll drift lower back down around that range shortly.

That's just my guess. Still I will be looking for a nice place to jump back in at, around that 1070-1100 mark.

Wild ride, isn't it?

As always- that's only my guess at reading the tea leaves here. You do what your own heart and head tell you, not what I write. I'm just a guy- not a professional. Good luck out there. And be careful.






​

 

[JTH]

Over 100 point range today on the SPX, no not the DOW, the SPX!!! That is just freakish :nuts:

 

[tsptalk]

Re: P&F Chart School

That is amazing - the fat finger order that took the Dow down 980 was supposed to happen.

 

[Silverbird]

Re: P&F Chart School

Ok, so what happened at 3:00 PM eastern today? That's a deep valley right there!

Edit: Found an article

NEW YORK (CNNMoney.com) -- In one of the most gut-wrenching hours in Wall Street history, the Dow plunged almost 1,000 points Thursday, before recovering some, as on a technical glitch in the trading of Procter & Gamble stock and fears about the European debt crisis spreading

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

 

[fedgolfer]

Re: P&F Chart School

That is amazing - the fat finger order that took the Dow down 980 was supposed to happen.

http://finance.yahoo.com/news/Trading-Error-at-Major-Firm-cnbc-434682061.html?x=0

what a silly excuse... the "B" isn't even adjacent to the "M"... if it was one fat finger, he meant to enter 9 Nillion shares. What was his name Tourre or Chubopolus?

 

[350zCommTech]

Re: P&F Chart School

http://finance.yahoo.com/news/Trading-Error-at-Major-Firm-cnbc-434682061.html?x=0

what a silly excuse... the "B" isn't even adjacent to the "M"... if it was one fat finger, he meant to enter 9 Nillion shares. What was his name Tourre or Chubopolus?

Maybe his keyboard has a faulty 0 key?

 

[fedgolfer]

Re: P&F Chart School

Zero key would make more sense. I've never worked in the floor, but all those tablets and keyboards, it doesn't appear those guys ever use the letters except for the ticker symbols. sounds like a load of baklava.

 

[350zCommTech]

Re: P&F Chart School

Zero key would make more sense. I've never worked in the floor, but all those tablets and keyboards, it doesn't appear those guys ever use the letters except for the ticker symbols. sounds like a load of baklava.

I agree. Something smells.

But if they follow the money, they will find out what really happened. But they won't try hard since they were the ones who did it, and they are now running off with the loot.:nuts:

 

[James48843]

The trading firm that caused the drop?

Citigroup.

"TOO BIG".

When one guy, at one desk, can push one key, and cause a 1,000 point drop in the Dow,...

Can you say "Too big to fail?"

http://www.cnbc.com/id/36999239

Trading Error at Major Firm Blamed For Selloff


Published: Thursday, 6 May 2010 | 4:21 PM ET

By: CNBC.com with Reuters

A human trading error at a major firm was the root cause of Thursday's sudden, 9 percent selloff in U.S. stocks, sources told CNBC.

Multiple sources said a trader entered the letter "b"—as in "billion"—when he or she meant to type "m," for "million," shortly before 2:47 p.m. New York time.

U.S. stocks plunged suddenly, briefly by more than 9 percent, before pulling back to a near 3 percent drop, as investor worries mounted that Greece's debt problems could spread.
Sources also told CNBC that the firm in question is Citigroup.

Citigroup said it has no evidence of a bad trade but it is investigating the situation.
The New York Stock Exchange reported there were no computer glitches in its systems Thursday.
Separately, Nasdaq said it was working with other major markets to review the market activity that occurred between 2:00 p.m. and 3:00 p.m.
© 2010 CNBC.com

Break them up into little pieces.

Tiny little pieces, please.

"B" or "M" on the keyboard shouldn't matter- whether it's a billion shares, or a million shares, if someone can push one button, and the stock market sees that Citigroup is selling a billion shares of anything, and thinks it's a real order- then Citigroup is simply TOO BIG to have placing orders.

Break them up. All the very large trading companies. Break them up into little pieces.

Now.

 

[Minnow]

I'd settle for bringing the old Glass-Stegall back.

caveat: I don't buy the trading error for one second.

 

[Buster]

According to Jim Cramer..the massive drop of almost a 1000 points was only for about 3 minutes and once the M and the B thing was straightened out, the market bounce back..

 

[James48843]

trading error?

Somebody just made a gazillion dollars.

I don't know who- but somebody did.

Mark those words.

 

[Gumby]

trading error?

Somebody just made a gazillion dollars.

I don't know who- but somebody did.

Mark those words.

Maybe the PPT needed some extra funds to continue????
Did they get enough?

 

[Minnow]

Somebody just made a gazillion dollars.
QUOTE]

made

stole

is there really a difference in this market nowadays?

 

[FAB1]

it never recovered to where it was before the "error".

I want mine back! grrr

 

[350zCommTech]

What happens if the market drops 600 points tomorrow?

 

[FAB1]

I noticed Bonds went way UP as the stocks went down and then sold off like instantly. Somebodys raked in some dough there too.

Well whats next? Friday will be an interesting day, real interesting.

 

[FAB1]

What happens if the market drops 600 points tomorrow?

This sounds insensitive, sorry.

Let IT. I took my punishment today, but tomorrow I will be nearly out of the market. Bonds can go up tho.

 

[350zCommTech]

This sounds insensitive, sorry.

Let IT. I took my punishment today, but tomorrow I will be nearly out of the market. Bonds can go up tho.

Sorry, didn't mean to sound like that. I was asking about what excuse they would use if that was to happen.

 

[FAB1]

Im so used to posting on a mobile my English no good.

That should have been: If this sounds insensitve, sorry - meaning I am the insensitive one apologizing in advance...