Rogue trader moved DOW & S&P lower...

[Black Swan]

righto, blame culture at its finest, btw, anyone seen medbs today?

Citigroup is investigating a rumor that one of its traders entered a trade that helped precipitate a drop of almost 1,000 points in the Dow Jones Industrial Average, a spokesman for the bank said on Thursday.

Citigroup, the third-largest U.S. bank, currently has no evidence that an erroneous trade has been made, the spokesman said.

Earlier, sources told Reuters that the plunge in the Dow Jones Industrial average -- its biggest intraday point drop ever -- may have been caused by an erroneous trade entered by a person at a big Wall Street bank.

Market sources said the erroneous trade may have involved shares of the so-called E-Mini, a stock market index futures contract that trades on the Chicago Mercantile Exchange's Globex trading platform. The composition of the E-Mini is similar to the stocks in the S&P 500.

http://www.reuters.com/article/topNews/idUSTRE6455ZG20100506

 

[N Rothschild]

bull**** imo. as leovirgo pointed out in my thread, usdyen was plunging long before stocks did there ****

 

[ukdaytrader]

I trust a lot of people with stops would have lost their cash, and those without adequate capital would have been closed out at all time lows. Just shows how dangerous this market is if you are not careful.

 

[N Rothschild]

my broker has just told me she is hearing the citi rumor is false

 

[Black Swan]

I don't trade the indices but have heard plenty of chatter re. the fib lines creaking suggesting a huge (overdue) imminent correction on the DOW/S&P...

We are entering a possible contagious sovereign debt crisis and despite so much US govt assistance their economy is still dead, Fannie and Freddie have their hands out for another $14bl over the past few days, just a couple of other issues which would make folk v. nervous...

Second/third stage of the meltdown unavoidable now..?

 

[DionysusToast]

I don't buy any of this. Look at ACN :

That price move is accompanied by NO spike in volume. It's as if someone turned off the bids.

For ACN at least - this was not a sell off - the volumes not there and it only lasted 1 minute - something odd happened in that 1 minute that also happened on thousands of other stocks.

Bottom line - if this was people getting nervouse, they'd have stayed nervous a while longer.

 

[N Rothschild]

thats what happened in the SP pit, there were NO bids for about 40 handles.

im sorry but the idea the dow melted down 1000points on a technical fib break is laughable

 

[wackypete2]

Sorry guys, I hit the SELL key by mistake. My bad.

Peter

 

[hwsteele]

Some one made lots of money from this "mistake".
The question is who?
I will keep my eyes open to see who's driving the new ferrari tomorrow.

 

[DionysusToast]

I don't buy the mistake story - the bid side just disappeared on multiple markets - is this just what happens when 60% of the volume is from program trades ?

We just hit a perfect storm that cause them all to pull bids & start selling ?

Stories are coming out about traders just sitting there watching with their heads in their hands... If they were busy holding their heads - who was doing the actual trading ?

 

[N Rothschild]

http://www.zerohedge.com/article/day-market-almost-died-courtesy-high-frequency-trading

not a bad round up here

i concur with this view that it was algo's gone wild!

 

[N Rothschild]

also consdiering how long this market was, some HFT trading chasing the momentum, stops kicking in, margin calls..no wonder it folded like a house of cards!

 

[DionysusToast]

what about the circuit breakers though ?

 

[hwsteele]

what about the circuit breakers though ?

Well if the electrician is driving the Ferrari tomorrow then that's it!

 

[N Rothschild]

it was late in the afternoon which means there was no 10% breaker, first breaker woulda been 20% which was 944. futures woulda gone limit down at 20% aswell

 

[N Rothschild]

lets hope we punch the breakers 2morow

 

[DionysusToast]

http://www.zerohedge.com/article/day-market-almost-died-courtesy-high-frequency-trading

not a bad round up here

i concur with this view that it was algo's gone wild!

I have to quote that article...

t is time fot the SEC to step up to its own sole duty, which is not to guarantee itself jobs at Goldman Sachs (well, not so much anymore), or to watch 18 hours of transvestite porn each day, but to protect the US investor from such borderline criminal activity as High

:clap::clap::clap:

 

[hwsteele]

lets hope we punch the breakers 2morow

Say that's a pretty picture!
Did you find it or make it?

 

[N Rothschild]

wikipidia lol

 

[hwsteele]

wikipidia lol

Oh:|