whysoserious

Ford (F) closed all the way down to 11.78 today! Just a few weeks ago they were at the Mid 14s. Holy smoke. What gives?

PTRocks

The Dow was briefly down by 1000 points.
At one point this afternoon a stock that started the day at 41.94 was trading at ONE PENNY, before rebounding to 41.00$.

Someone has some 'splainin' to do...

1 COBRA

Rise, rise, rise. Perhaps the labor strikes called by the unions against the just about bankrupt Greece might have something to do with it causing the drop, drop, drop.

The shape of things to come, socialism at its best. Get ready.

Bullitt995

There was an accident involving a trade that was billions instead of millions. One trading accident caused this.

05stangkc

It's an Opportunity to buy! Ya thats the ticket!

KC

whysoserious

No way Kevin, I bought my second set at 12.96 (first at 1.86), I need these puppies to keep heading up!

WarpdSpazm

YUP.. I work for one of the big banks... IN talking to the traders today, it seems a banker over at Citi, meant to sell 16 million Notes, but made the electronic order for 16 BILLION. Citi is of course denying it, but it's all electronic.. not sure how you can deny audited actions...

What's 5% of 16 billion? That's the loss to Citi... nice!!!! and we wonder why they got dropped from the Dow...

houtex

"I must've put a decimal point in the wrong place or something. ****, I always do that. I always mess up some mundane detail." - Michael Bolton

---

So... how do they correct that? Pretend that day didn't happen!?

/seriously... "Explain!!" - any confused Dalek

cdynaco

B vs M? Get real. I'm not buying that for a second.

Those huge block trades are program trades, automated triggers and algorithms. Not some dweeb using a keyboard.

And over Greece? That's just stupid. Remember the last 'currency debacle' in 98 starting with Thailand culminating with Russia? Countries with nothing GDP's?

http://www.pbs.org/wgbh/pages/frontl.../etc/cron.html

A few years later it was seen as one of the great buying opportunities during that era for long term investors.

Regardless, a freefall within minutes being caused by a typing error?

I call

Everybody knows it was caused by global warming.

cdynaco

The 1,000-point plunge

Commentary: Reasons and results from yesterday's historic collapse

By Todd Harrison May 7, 2010, 11:25 a.m. EDT
NEW YORK (MarketWatch) -- The market swooned almost 1,000 points intraday yesterday and the world is wondering why.
The explanation initially offered in the mainstream media was that it was a "fat finger," which is trader's lingo for someone pushing the wrong button. "Somebody pressed a "B" instead of an "M", they said at the time. That's silly, really; orders don't trade that way.

http://www.marketwatch.com/story/rea...7?pagenumber=2
***********

Dear Congressman ***:

So where's the "Up-tick Rule"?

I thought President Obama was going to FIX the SEC's lack of regulation....

No Up-tick Rule allowed the free fall in 2008 which was exacerbated by short sellers, and allowed the same thing yesterday.

If the Up-tick Rule was reinstated, shorts couldn't have traded one share unless the previous trade had been higher than the one before it. While it doesn't stop the market from falling (and shouldn't), it stops the stupidity of dropping hundreds of points in a few moments. It stops computer programmed 'short' strategies from taking over and ruling the market.

I urge you to compel the SEC to reinstate the Up-tick Rule! It worked for decades and should never have been removed.

cdynaco

PS: Notes are loans - medium term bonds - they don't trade on the stock exchanges.
What was your trader buddy referring to?
Or did you mean shares?

GJM20115.0

Ordered a 5.0 from 05fordgt (Jeff) on Wed.

Bought 1000 shares of Ford today. I hope by Monday things have calmed down, and I can make some accessory money off it

cdynaco

Did they give you 0% for 60 months on those shares?

GJM20115.0

I lost on F 10 years ago. Time to make it back.

cdynaco

So where did all the experts go?


Rule #1: NEVER EVER fight the Fed.

Rule #2: See Rule #1.


The Fed - now Europe - is flooding their economies with money supply to counter debt implosion/deflationary pressures - regardless of knee jerk algorithm/program trades and automated trade triggers.

And yes substantial inflation will come. Perhaps they will stall it a few years because the debt implosion is greater than they want us to know. (Why do you think they are propping up oil prices in a flat worldwide economy - so it will show "some" inflation vs instilling fear of 30's style deflation.) But it will come. Nothing beats stocks and real estate long term during systemic inflation. No, not gold - too manipulated. (Metal bubbles aside. Check out the 70's. Early 80's spike was short lived and then gold sucked for decades. Talk about lost opportunities!) IMO