Since we are witnessing history in the making, I figured we might as well start talking about it! Dow was down 1000 points and is only down 400 now. Yen was up nearly 6% against the dollar.
P&G was down $20 for a brief period of time... raises questions about misprints or technological malfunction. Either way, a lot of people are making or losing a lot of money right now!
| +164 | The "Not So Obvious" things that get you a return offer? | 19 | 3h | |
| +94 | Is my life over after not getting GS? | 20 | 3h | |
| +64 | Best IB group on the Street | 27 | 25m | |
| +54 | BIG FOUR ARE PARADISE | 15 | 7m | |
| +46 | Thoughts and tips on how to speak like an investment banker. | 25 | 2s | |
| +43 | Tell me one good reason why Jefferies isn’t going to be a top bank in the next 5 years | 22 | 4h | |
| +36 | UBS Outlook | 28 | 1d | |
| +35 | Georgetown Placement for 2024 and 2025 | 21 | 6d | |
| +33 | How to deal with egotistical team? | 6 | 2d | |
| +31 | Highest Paid Bankers in Toronto? | 50 | 1d |
Career Resources
Get instant access to lessons taught by experienced private equity pros and bulge bracket investment bankers including financial statement modeling, DCF, M&A, LBO, Comps and Excel Modeling.
Tech problems + panic + greece + technical levels + quant guys stopping out
Someone has a blackbox that totally fucked up the market. I bought a LOT of index futures a few minutes ago. I bet the contracts get cancelled, but we'll have to see.
This was the reported reason but what started it was a prop traders typo on an order. ooops!
Those are my thoughts, but wow this is crazy.
I couldn't get equity trades to go through so I went long through FX (JPY, AUD, NZD)
What the fuck?!?! My largest holding beat estimates yesterday, up 10%. All of those gains have been erased and I am down 4%. Effecient markets my ass.
Take a look at Accenture. It traded at $0.01 -- WTF? Worst execution ever?
Dows bounding a back a little now.
Maybe Obama will save us and just buy the whole stock exchange and every bank!
definately technical
Check all the major liquidity players (AAPL GOOG) All dropped roughly the EXACT SAME percent right before 15:00 when the DOW dipped.
Unbelievable. For about 10 minutes you could by AAPL at 225 dollars a share.
This is absolutely crazy.... wow
RUMOR: Cause of the crash was due to Citi's program desk had an e-mini error. meant to sell 16 million and put in billion instead...from Tim Sykes Facebook account.
says he has contacts at hedge funds that said this so take it for what it's worth (not much?)
-Patrick
CNBC: Human error caused this, according to numerous sources. The sources said that the human trader put an 'B' for billion instead of 'M' for million. Rumor that it was probably some type of derivative trade.
Just did some quick math:
Black MOnday 1987 drop: 22.7%
Black Thursday Drop (From Open to bottom at 14:48): 10% (rounded up)
Not too bad
Um Can someone say fat finger?
hahahaha
I'm not buying all this talk that what happened in Greece today/yesterday caused such a massive shock to the market.. If that was the case we should have seen a similar effect after they were downgraded to junk...
"tech problems" is much more likely... specially after I looked at Accenture's chart... wtf????
This is why we love finance, days like this, don't you just love this feeling
They need to keep the market open an extra hour today, but they won't be able to make that decision fast enough
markets rallying so who cares.
Assuming that this was a human error, what do you think is gonna happen to that trader??? It would really suck to be him
from briefing: problem with the fat finger argument is the dollar and bond market moved before equities.
Here's Erin Burnett and Jim Cramer reacting to the drop:
http://www.huffingtonpost.com/2010/05/06/jim-cramer-erin-burnett-f_n_56…
how could one trader/bank/trade cause such a large drop?
So much for efficient markets. That accenture quote is crazy!
Whether it was set off by a fat finger trade or not, seems a snowball effect of stop sell orders would explain the huge drop and quick recovery.
Yah, Accenture dropped from $40 to $0.01. I don't understand what could have triggered that
http://www.google.com/finance?q=NYSE:ACN
somebody made big bucks today
God imagine if you had 1,000,000 dollars and saw ACN at .01? You would have made 4 BILLION DOLLARS IN 5 MINUTES (Oh yeah, minus that measly 1,000,000 you invested)
Will they cancel the trades? Was a misquote by a broker or was it really a trader?
Check the Traders forum if you want to see the ACN Charts from today, I just posted them.
There wouldn't have been a million shares to buy at $0.01...
The market clearerly thought there was, it wasn't a listing error.
People or computers thought something was wrong and dumped their shares, they had to be out there somewhere.
Unless it was a simple listing mistake?
adrenaline!
NYSE Euronext: Market for certain stocks were closed for approximately 90 seconds--to allow price discover--so trades went to other exchanges to be executed. So, for a thinly traded stocks, the price dipped due to the fact that it could only be executed at a much lower price on other exhanges.
Not a fat finger trade.
I don't understand?
The stocks that were impacted the most by what ever happened today were heavy Vols. Plus I don't see how closing a market for 90 seconds could do that.
Do you have an article link?
The NYSE CEO is on CNBC. That's where I got the info.
I edited my original post to clarify, so you might want to read it again. Also, the price moved so much because the bid/ask quotes were so thin on the OTHER EXHCHANGES. So even though P&G, Apple, etc. had heavy volume on the NYSE, it was not the case for the same stocks on other exchanges
That might explain P&G but what about Accenture?
What exchange has a $40 spread? Or do we blame the algorithms for that one?
I'm blaming quants. I can see it now congress questioning financial engineers.
My calls on VIX were way awesome though.
It was Goldman Sachs selling piece of shit deals.
I demand an investigation.
Financial Engineers!!!(oxymoron right there), engineering my ass, they only know how to engineer the destruction of a market e.g todays events......
Accenture low during crazy sell off = $0.01 Accenture price when the dust settled = $41.07 Volume on Accenture @ $0.01 = 27.5k Someone made $1.1million buying $275 worth of Accenture stock within a few minutes ...
Headache for exotic traders tomorrow with all the knock in/knock out option triggers, and payoffs on lookback opions and all sort of weird exotics lol.
^ Didn't happen, there were only 19 trades each of 100 shares that were executed when accenture was at $0.01. 18 of them have been cancelled already. read article http://www.bloomberg.com/apps/news?pid=20601087&sid=a3tiFiVZLZwg&pos=1
^ good beacause i was crying when I read that. haha
Some trader mistype "b"? I don't believe that...I mean, don't you need to double-check an order with billions of dollar involved?
The person who is the 1 of the 19 must be freaking out right now.
The order was on 100 Shares ($1) only so he only cashed in 40 grand.
Which is a pretty good return on investment...like what 40,000% hahaha
PS: Sorry for flooding this thread, but thought you'd like to see this:
http://www.reuters.com/article/idUSTRE6456QB20100506
Shittygroup strikes again.
I think they should really spend less time on Austin Powers during their training
Bllions on minis? Are you an idiot? What product? Do any of you know anything? Look at the what has happened to risk reversals and skew in derivatives over the last 3 weeks, plus the buyer of 50,000 June 900 Puts before the market plunged. I gave you more information right there, than you'll ever hear. There was no fat finger, look at the standard deviations, and the delievered vols vs implied. This will be worse than 666.
.
Huh?
Illo officiis facilis ut quae veniam hic modi. Mollitia ut quae voluptas maxime. Dolorum possimus atque dolores sed. Ut possimus occaecati autem voluptas reiciendis. Labore aut voluptas quae sit. Error hic eligendi labore commodi ad sed hic.
See All Comments - 100% Free
WSO depends on everyone being able to pitch in when they know something. Unlock with your email and get bonus: 6 financial modeling lessons free ($199 value)
or Unlock with your social account...
Ut facilis corporis impedit ipsam magnam qui animi. Est et autem voluptatem unde. Aliquam est voluptatem incidunt corrupti. Suscipit quibusdam ullam consequatur repellat. Eum provident molestiae saepe quaerat rem vitae. Qui quo ut dolorem corporis. Aut velit aut laudantium sint odio.
Quo omnis nisi deserunt unde. Laboriosam illum ut excepturi illo. Eos dicta voluptas magni deleniti impedit rerum dolorum et. Ut recusandae ipsam explicabo sint quia ut. Cum accusamus molestiae et rem. Necessitatibus maxime ut at odio tenetur architecto iusto eveniet.
Sit enim itaque qui eos et dolores. Accusamus ut quia delectus sapiente voluptates omnis voluptatem. Blanditiis ut sit modi fuga officiis illo. Illum eaque autem qui quia harum cum quasi. Qui cupiditate et adipisci nam et repellat.