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

[Frixxxx]

Trading by typos......Can you imagine the people that got into P&G at 40?

This is a nightmare.

This trader will be an ECON 101 question in 10 years.

 

[James48843]

USAA just posted this on their website:

Market Falls 3.25%; USAA Responds

Posted on May 06, 2010 |
The Greek financial crisis today was weighing on the U.S. stock market when an unusual market event triggered a wild ride for investors — with the S&P 500 Index closing down 3.25% for the day.
The NYSE and NASDAQ report they are investigating potentially erroneous transactions involving multiple securities executed between 2:40 p.m. and 3 p.m. EST. The NYSE and NASDAQ will update investors with details as soon as they are available. Check NASDAQ for updates.
Prior to 2:40 p.m., investors were principally concerned by the lack of concrete action by European Central Bankers to provide the liquidity necessary to stop the Greek debt crisis from spreading to other members of the European Union (e.g. Spain, Ireland, Portugal and Italy).
For more information about international markets, watch the USAA First Quarter Market Update webinar from April 14.
USAA's investment team is monitoring markets continuously, and we will keep you updated as appropriate.
USAA advises members to stick with their financial plans. If you do not have a financial plan, contact USAA.


Investing in securities products involves risk, including possible loss of principal.
Foreign investing is subject to additional risks, such as currency fluctuations, market illiquidity, and political instability.

Interesting. Even somebody like USAA is talking about today.

Just an observation- but I think we're going to see some interesting market action tomorrow.

 

[grandma]

Trading by typos......Can you imagine the people that got into P&G at 40?
This is a nightmare.
This trader will be an ECON 101 question in 10 years.

since it appears Wal Street allowed the tx to be cancelled, will that also cancel purchases?

 

[Bullitt]

I'll tell ya. I'm just at a loss of words right now. You've got the buy and holders calling this a buying opportunity within a bull market and the bears calling this the end. Ha. A bull market that bids dry up on. Hmmm?

The reason for the drop was when investors pull bids, the NYSE just halts trading a few seconds until people get their heads together and buy. Problem is, we have all these stupid dark pools and electronic exchanges that just run like senseless bots and don't shut off because the companies that own them are probably front running trades via HFT programs. What bids were left? PG at (I heard) .15. Yeah, 15 cents, not a typo. Accenture at a penny. WTF?

So this is what happens in a bull market- bids dry up? :nuts: I've been saying for a few months now and recently I've looked in the mirror and wondered if I lost it, but this completely insane market is finally showing cracks to even the most unknowing investor on main street.

Keg stands, power hour and body shots, party hard all day and night; for, liquidity has drowned out the voice of reason.

 

[Birchtree]

And now comes the 70 point SPX spike to the upside crushing everything in its way. This bottom is truly a gift to the courageous hoof hearted. Take it down another 100 Dow points in the morning and then bring it back like a rocket ship. No way would I be out of this market - there is way too much money to be made.

 

[Buster]

No way would I be out of this market - there is way too much money to be made.

Like Jim said earlier..I too am wondering if the little slip of the B word was not a very well calculated mistake....:suspicious:

If someone was waiting for P&G to bottom out and then spike back in 4 minutes, one would have made a ton of cash.

 

[Boghie]

Why were disparate exchanges hit instantaeously?

 

[Birchtree]

All the trades from 1440 hours until 1500 hours will be expunged by the NYSE. No one will profit from an apparent mistake. Sure makes a nice roo tail though.

 

[nasa1974]

I find it hard to believe that it was an error that caused the market to drop so hard. Someone influenced the market and it was no error. Just my opinion.

 

[Buster]

All the trades from 1440 hours until 1500 hours will be expunged by the NYSE. No one will profit from an apparent mistake. Sure makes a nice roo tail though.

How do you know this?..Not saying you're making it up..but does this usually happen in a case like this?..otherwise the DOW should have broke even today at worst, based on what you're claiming will/did happen.

 

[Boghie]

All the trades from 1440 hours until 1500 hours will be expunged by the NYSE. No one will profit from an apparent mistake. Sure makes a nice roo tail though.

Hope so, but Tom will have a heck of a problem with the AutoTraker - eh...

If they don't adjust I might just be

Lookin' up at the 'G Fund'!!!​

this time tomorrow:nuts:

 

[fabijo]

How do you know this?..Not saying you're making it up..but does this usually happen in a case like this?..otherwise the DOW should have broke even today at worst, based on what you're claiming will/did happen.

Here's an article:

Nasdaq to Cancel U.S. Trades That Moved More Than 60%

Nasdaq OMX Group Inc. said it will cancel trades of 286 securities that fell or rose more than 60 percent from their prices at 2:40 p.m. New York time, just before U.S. equities plummeted.

http://www.businessweek.com/news/20...-trades-that-moved-more-than-60-update2-.html

 

[fabijo]

And another article saying that NYSE will do the same thing:

http://www.reuters.com/article/idUSN0614132620100506

 

[Zebe]

I don't think this will settle down quickly. I think tomorrow we will still see a lot of volitality and that it will not settle until after the weekend and the news people talk about it endlessly. The average investor will still be running for the exit. I expect to see some administration or Fed types come out with comments and for Congress to take a look. All this will keep money out of the market. Don't think there will be a rebound with larger volume until at least next week. Do think that if there is large volume tomorrow that it will be to the down side considering today's trade and continuing worries about Europe. After today small investors are scared of loosing the rest of their retirement savings. Just my gut feeling.

 

[James48843]

Cancel all the trades between 14:40 and 15:00 that moved 60% or more?

Incredible.

I have never, in my life, heard of such a thing.

Well, there ya go- that ought to bring confidence into the markets. (NOT).

I think yesterday must have had something to do with a phase of the moon, or something. Anybody notice whether or not there is a full moon? Or if aliens have landed, or anything?

 

[Bullitt]

Great, they are canceling trades that dropped 60%. What about the ones that dropped 20%? I'm not impressed. 287 trades on a volume day of over 10 billion shares on NYSE alone. I'm actually laughing right now. Don't believe the bad guys are getting hit here.

 

[poolman]

http://www.youtube.com/watch?v=eTsvMd7fqxk&playnext_from=TL&videos=G_E2RZtJWi0&feature=sub

 

[James48843]

http://www.youtube.com/watch?v=eTsvMd7fqxk&playnext_from=TL&videos=G_E2RZtJWi0&feature=sub

Hahahahahaha....

The rich get richer. the little guy gets it in the shorts.

You think the markets are real? No way.

The guys with the gazillions....are taking even more.

You want a tip?

Here's a tip.

Invest in ammo, water, and dehydrated food.

 

[fabijo]

You want a tip?

Here's a tip.

Invest in ammo, water, and dehydrated food.

You're beginning to sound like what the media calls a "right wing extremist!" :nuts:

 

[James48843]

How about this?


Live audio feed from trading pits on Thursday at 2:47.

I'm not sure exactly what was traded, but the audio track is pretty interesting...

At one point you can hear the guy say "Morgan Stanley is coming in" as they try to intervene- but even that one is blown away-

And then- it suddenly reverses and goes the other way- and then again collapses-

This is what is happening on the floor during one of those crazy sessions-

​