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The Stock Market Is Crashing… Sort Of

6 May 2010 10 Comments

At one point, the Dow was down 998 points apparently.. until the man behind the curtain came in and “fixed” the market.  Not sure what that means.

Anyways, it looks like the programmed trading triggered major selling and plunged the market to scary levels in a matter of minutes.

All is well though as we’re “only” down 400ish on the Dow currently.

Who would trust this market on the long side?

10 Comments »

  • wingtipwalker said:

    Can you tell me what went on with Accenture (ACN) at about 2:56p?

    Favorite quote: "A near 1,000-point drop is "people jumping out of windows" territory, said Gerard Cassidy, an analyst with RBC Capital Markets."

  • 20smoney said:

    Ha, I saw that it supposedly hit $.01 a share… I'm not sure that means you would have hit a limit order at $.01 if you would have had it in place… Accenture is my former company that I used to work at so I was definitely watching that with interest.

    The market is a mess. Be careful w/ it.

  • wingtipwalker said:

    If the system is this easily broken, what's the risk in placing some crazy low limit orders (maybe not a penny, but say $5 or $10) on ACN or MMM or some other high volume stock on the off chance that it hits in a blowup like this? Sell it on the bounce back and you've reached day trader nirvana…

    Not saying I'm brave enough to do it, but these are indeed interesting times we live in.

  • 20smoney said:

    Yeah theres very little risk putting in a standing limit order at some insane bottom basement price like $5 on a $50 stock, you prob will never hit it but like I said, very little risk unless of course the world ends 🙂 and in that case, who cares about your portfolio?

    Today was a 1987-like crash. With computers dominating the market and the majority of volume provided by these computers, it's only a matter of time before we have days like today. I would bet that we'll have more.

    Very hard to trust today's stock market. Cash and gold baby.

  • 20smoney said:

    Ha, I saw that it supposedly hit $.01 a share… I'm not sure that means you would have hit a limit order at $.01 if you would have had it in place… Accenture is my former company that I used to work at so I was definitely watching that with interest.

    The market is a mess. Be careful w/ it.

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  • Stephan said:

    definitely was a crazy day yesterday, although i do not attribute it to any actual fears of a meltdown in the economy. like someone said above, days like these will become more common as computers take over trading. apparently there was a glitch or mistake by one trade that caused millions of shares to move at an unrealistic price, which then causes computer programs to base their decisions on that mistake and voila, you have yourself a 1000 point drop in 15 minutes. i guess NYSE said they are investigating and will invalidate those trades that resulted in stocks to lose basically 100% of their value. (Boston Beer Company, maker of sam adams was one, and there is no way they should be worthless!)

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