well, the trade isn't going to stand. i don't know where they'll actually break everything that happened, but 0.01 trades don't stand. definitely interesting watching it all unfold and trying not to get run over.
I have an idea how many, it looks like a pretty small amount and looks pretty clearly a computer error. because it keeps changing from like 30's to .01 and then back to 30's in the span of less than a second.
interesting to note that in the weeks before this pullback and fat finger trade that bullish sentiment and money flows were at epicly high levels. barron's had a couple of notes in the past couple weeks talking about how money flow into bull funds v bear funds was at the highest it had been since the tech bubble. also, a few weeks ago they had noted that bull/bear investor sentiment was at levels not seen since 1987 before the crash
it was because there were no bids when the nyse went into U quote mode. all the ECN liquidity was already taken so people were selling at a buck.
I have no clue what that means cause I am way too dumb - but story I just saw said that the 19 $.01 trades that occurred were voided, so that $800 windfall is no more. or edit, that 18 were canceled by CBOE, some guy got one done on NASDAQ that hasn't been canceled and is now 2 andrew jackson's richer.
so i guess i was wrong with my prediction @ u earlier today in the GARM.... of course it was purely coincidental that i chose today of all days to make any sort of prediction in the first place
so when the price of a new york stock moves far enough to hit a liquidity replacement point then the specialist will take over and put the stock into auction mode. the auction mode was the old way that the nyse would work. anyhow, when he is in auction mode then his marketplace can't be traded until he decides where the trade should print. when this is happening the only marketplaces trading the stock are the ECNs (arca, inet, bats, etc). so lets say some seller comes in and does some sort of arca market sell order for 10000 shares when the specialist is in slow mode. 20 1000 19 1000 18 1000 .01 100000000000 let's say this is what the market looks like on arca. the guy will get his first 1000 shares filled at 20, the next at 19, and the next 1000 at 18. the final 7000 will be filled at .01 if there are no other bidders. hope that made some sense.
nah man actually it kind of sucked. i just started up at a new prop firm, assent, yesterday. i get 100% here, but you put up funds...basic prop model. had a good day yesterday when a lot of the MLPs were getting hit in the morning. some fool has been liquidating his account of high yield stuff for a couple days now. anyhow, only traded like 22k shares and was up 8 so it was good since i was just trying to get a feel for stuff. then today comes around and everything blows up and my risk limits were set way too low so i couldn't trade when all the crap blew up. i was already in a lot of the preferred stocks that got hit and some other random closed end funds, but when we dropped 700 points i couldn't trade because i was at my loss limit. so they tripled my loss limit but it didn't take effect until it was too late. at first i thought it was a buying power issue, but then i realized it was a loss limit issue. oh well...quick learning for the 2nd day here. i should have had my best day ever, but can't be disappointed being up 50. what could have been.....dude next to me made 225 and guy next to him made 550. one of the guys at my old firm made over a mil if all the PG and other stuff isn't broken. strange and demented how some of my best days are some of the most disappointing.
I wonder if the Dow heads back down under 10k if Henry will blame it all on a trading glitch again In any case, tomorrow we get nonfarm payrolls, unemployment, and consumer credit #'s ...... I sincerely hope Merrill Lynched has all of it's computers tuned up and ready
A rumour is some trader at a "major firm" sold a bunch of E-Minis but typed 16 billion instead of 16 million. Leading guilty party candidate: Citigroup, Inc.
Check the previous page of this thread. Mango posted a snippet about that. Duncan Neideraur kind of said that either wasn't the cause of the drop or wasn't the only reason.
Today is a great example of why the stock market is such a joke. Why would you put your hard-earned money in the hands a bunch of wall street idiots?
how did they not suspend trading when the market dropped 9% in one day? i thought they put some sort of backstop that temporarily shuts down the market if it sells off too much and too fast.
