Dow just dived over 1000 points in less then 5 minutes

darkman2

WTF happened there? Computer fault? Worst single day loss easily since 1987.


It's rebounded a bit but there was absolute panick on the floors. Huge surge toward Gold.





Reminds me...

sceptre

darkman2 wrote: »

WTF happened there? Computer fault? Worst single day loss easily since 1987.

It's an intraday swing. The 1987 drop doesn't even feature compared to some of the intraday swings. All of the top 10 or 20 biggest intraday swings are post-2000, most from 2008.

This, mind you, at about 1010 points, is the second largest intraday point swing ever - the biggest was in October 2008, that was 1018 or thereabouts IIRC.

The Black Monday end of day drop was just over 500 points, or 22% of the market. Today is... <quickly checks> currently down 387 on start of day as I type, percentage far lower (about 3.5%) so it's hopped back quite a bit - you can see it in the graph. It wasn't even enough of a temporary drop to cause the 30-minute OMG drop calm down coffee break to come into effect (that needs a 10% drop, trading is then shut down for 30 mins, it fell just short before bouncing quite a bit back up). The OMFG calm the **** down circuit breakers don't kick in to stop trading unless there's a 20% drop, that's only been seen once and that was 1987.

Not that I'm saying it isn't important, it's significant in its own way, especially for the few minutes when everyone was selling, followed by the few minutes when everyone was buying. It's the second biggest intraday point swing ever after all, but they're almost all in the past two years anyway. It'll get a few minutes on the news and a "so what the hell happened on Wall Street, Chuck?" question. If Chuck is witty, he'll say something like "well, with what's happening in Greece and with Portugal's re-rating, for a change, Europe's caught a cold and we're sneezing". Chuck, you go girl.

The blue chips took a temporary hammering, to answer the question someone will ask. Disney, GE, Amex were the main culprits/victims.

The April job figures are out tomorrow, depending on what those are, tomorrow could be a *really* bouncing interesting day for the dow average, even compared with today.

mike65

From Guardian live blog

8.26pm: Dan Roberts here taking over the live blog to see us through what could be an interesting evening on the international markets. Following the shock 900 point plunge in the Dow, the New York Stock Exchange is looking into the trading data to see whether a rogue trade may have sparked the panic selling. The Dow Jones index has recovered to trade 'just' 4.5% down, but it's undeniable that markets are extremely jittery right now. It feels, in fact, just like it did during the banking crisis.

amacachi

It's still fairly bouncing around, though within a smaller window thankfully.

Atlantic Dawn

Great news for buyers, bad news for sellers

amacachi

Atlantic Dawn wrote: »

Great news for buyers, bad news for sellers

Some serious money to be made alright, anyone not buying in those few minutes was a fool.

mike65

Apparently someone pressed SELL when they shouldnt have.

ei.sdraob

hmm

http://www.cnbc.com/id/36999483

According to multiple sources, a trader entered a "b" for billion instead of an "m" for million in a trade possibly involving Procter & Gamble

happens to the best of us

"There is simply a growing recognition that Greece has got to default," banking analyst Dick Bove told CNBC.com. "The riots in the streets showed the decision to repay the debt was not going to be made by the people in Germany, France and Switzerland—it's going to be made by people in Greece and they're not going to repay it."

scary

and then the euro dropped to 1:1.25 against the dollar, sigh

The_Thing

According to multiple sources, a trader entered a "b" for billion instead of an "m" for million in a trade possibly involving Procter & Gamble

What is the penalty for doing that? Do they get the sack?

digme

Bernanke sent Obama a warning to back off the audit of the Fed.

Welease

The_Thing wrote: »

What is the penalty for doing that? Do they get the sack?

Given the recent past, no.. The taxpayer will cover the losses and pay the employees a top up bonus to ensure they don't lose their highly trained staff to competitors

fontanalis

mike65 wrote: »

Apparently someone pressed SELL when they shouldnt have.

It's more like a groundhog than a stock market.

mike65

It was me I was playing the markets, made a fortune on Paddy Power!

northwest100

I was going to argue it looked like market manipulation through High Frequency Trading but you usually get called a nutcase for believing in such.

When hackers commit this type of fraud, it's called "pump and dump"




High Frequency Terrorism: How the Big Banks and Federal Reserve Maintained Their Death Grip Over the United States

In the aftermath of Goldman Sachs’ public flogging before the world in Congress, and while under investigation, on the very day that Congress was voting on the “break up the too big to fail banks” amendment and cutting behind the scenes deals to gut the audit of the Federal Reserve, the stock market had its greatest sudden drop in history, plummeting 700 points in ten minutes - shades of September 29, 2008 all over again.

People would rather believe it was a mistake..but i can't help believe from the evidence and expert opinions it was completely engineered.