Posted on 05/13/2010 7:38:52 PM PDT by TigerLikesRooster
Did Dow Actually Drop 1250 in 'Flash Crash?'
On Wednesday May 12, 2010, 1:51 pm EDT
The infamous "Flash Crash" of last Thursday where the Dow Jones Industrial Average (INDEX: .djia) lost as much as 998.50 points in a matter of minutes could have been much worse. The Dow actually fell 1,250 points if you calculate the average using the low prices for the day that traded away from the NYSE on other exchanges.
This is not using the trades that were busted because they were 60 percent off the market, according to Lon Juricic, who ran the shocking numbers for his informative research site StreetInsider.com. These are trades that stand for the stocks, but just didn't go into the index calculation.
The low for Procter & Gamble (NYSE: pg) during the quick collapse was $39.37, which occurred on another exchange and still stands to this day because it was within the parameters of legitimate trades as dictated by regulators and the exchanges. But the low price for P&G that went into the Dow calculation during the crash was $56.
(Excerpt) Read more at finance.yahoo.com ...
P!
All I know is that it makes me feel uneasy; it reeks of ‘unnatural,’ IMO.
I’m guessing this was the first strike of the iPad!
>I’m guessing this was the first strike of the iPad!
Ouch! / LOL
What originally was intended as a means to raise capital from interested investors for legitimate business is now just a high tech casino.
Casino game via server farms.
Curb stops kick in when a 10% drop in the markets is reached and then trading is halted for an hour. The flash trading drop caused by computer trading programs sometimes known as algorithms that daily execute about 90% of all trades (non-human) inflected a 9.2% drop then reversed and caused a mini recovery, all with pre-programing to avoid the curbs of a 10% drop. Pretty slick huh?
Everyone flushed at the same time.
With no hassle, they can erase unwanted trades. Wonders of computer programs.
LOL!!! Some of my stock picks are crap, too.
Just out of sheer curiosity, how long do we think it would take the Dow to drop 1250 points if Germany announces it is abandoning the Euro..??
http://www.nyse.com/press/circuit_breakers.html]]
after 2:30 pm circuit breakers would not kick in until a 2150 point drop at which time the market would close
SEC striking already executed trades is the back up plan if computer programmers get to carried away but
SEC announces they are working diligently to discover what went wrong on ‘flash’ day. They are using the same investigators that are still looking for who shorted airlines just before 9/11.
One thing for sure...
This is the end of “protective” stop orders.
It dropped enough to execute my buy for BPT at $86. I'm out at $93.
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