Posted on 02/27/2007 2:30:46 PM PST by Junior_G
(RTTNews) - CNBC Reports - Glitch around 2 PM caused Dow Jones to drop 200 points in short time...
(Excerpt) Read more at nasdaq.com ...
Stinks if you had a stop loss filled. Eek.
"The hatch just blew"
Glitch?
Thats a pretty mild word for something that cause a 200 point drop.
I would lean more towards hicup.
That's gonna suck. Don't see it on Yahoo yet.
Wall Street will form a committee to investigate and sick consultants on the problem. /so
Wow
416 points! Holy Moly!! That's a big ***drop***, due to a glitch, isn't it?
That's funny. I was watching that part of 'The Right Stuff' right about 3:00.
The article gives almost no information; but are they actually trying to say that the the 200-point drop was not based in reality? I hope they fill it in with more info...otherwise I'll assume it was some Tom Clancy-style attack on the U.S. economy. :)
In no time at all Pelosi will speak of the reason for it.
Of course it will be the usual, POTUSitic in her opinion.
It actually plummeted over 250 points -- then it quickly recovered 200 points.
Have the heads started rolling yet?
What the heck do they mean by a "glitch"?
WTF?
This should be veeeeeeery interesting. Who would that "comp"
to bump it back up 200 pts?
LOL.
from article:
http://blogs.wsj.com/marketbeat/2007/02/27/tabulation-trouble/
February 27, 2007, 4:46 pm
Tabulation Trouble
Posted by Chris Bain
Scott Patterson reports on the Dow industrials quick 3 p.m. drop:
The sudden, sharp decline by the Dow Jones Industrial Average shortly before 3 p.m. Eastern time today was triggered by a tabulation delay by Dow Jones data systems, which calculates the average. There was a temporary lag in calculation of the 30 large-stock average due to a surge in order flows as the market continued to tumble in afternoon trading, much like a clogged pipe. Just before 3 p.m., Dow Jones Indexes switched over to a backup system to calculate the average, which nearly instantly registered the huge move.
The glitch wasn’t the cause of the decline, but it did cause the drop to register far more quickly than it otherwise would have. Other indexes fell at the same time, but more gradually. Some traders noticed a discrepancy between futures contracts tied to the Dow industrials and the index, which directly tracks the stocks. Usually, the futures contracts closely track the overall average.
“There was a huge disconnect between the Dow futures and the Dow average” of about 200 points, said Brian Williamson, an equity trader at Boston Company Asset Management.
"... otherwise I'll assume it was some Tom Clancy-style attack on the U.S. economy."
Well, then, a Tom Clancy-style do-over will be in order, lol.
The eyes of all stock-market followers were glued to their computer screens Tuesday to see just how far the Dow Jones Industrials Average could fall.
It was end-to-end action, with the blue-chip barometer ($INDU : Dow Jones Industrial Average
News , chart, profile, more
Last: 12,216.24-416.02-3.29%
4:30pm 02/27/2007
$INDU12,216.24, -416.02, -3.3%) tumbling 416 points, the biggest one-day point drop since September 2001. At one point during the session, the point loss reached 546 points. See full story.
But if you blinked at around 3 p.m. Eastern, you would have missed the knockout punch, as the blue-chip barometer plunged nearly 200 points in an instant. The move was so severe that many believed it was just a computer glitch.
"It happened, but it didn't really happen," said Steve Goldman, chief market strategist at Weeden & Co. He said the move was "right" in the fact that the market was down about 500 points, but it was wrong in the size of the index's move at that moment.
A look at an intraday chart of the Dow shows a sudden move from around 12,343 -- a 289-point loss on the day -- at 2:58 p.m. Eastern to about 12,165 -- a 467-point loss -- within the next minute. See interactive chart (set time options to "1 day" and "1 minute").
"I believe that stock data was just not being updated in a timely fashion," Goldman said. "When it was, right around 3 p.m., the index just fell."
http://www.marketwatch.com/news/story/if-you-blinked-3-pm/story.aspx?guid=%7B07F2C85A-A4A0-4A8C-AEDE-5AF7A3C1B130%7D
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