Dow Jones dropped 1000 points!!
05-06-2010, 02:16 PM
#1
Dow Jones dropped 1000 points!!
http://www.cnbc.com/id/36997701
In one of the most dizzying half-hours in stock market history, the Dow plunged nearly 1,000 points on worries about the spreading European debt crisis before paring those losses in an equally rapid rebound.
The euro fell further against the dollar, hitting a new 14-month low. The euro has tumbled against the dollar since last fall as faith in Europe's shared currency dwindles. Greece's debt crunch is widely seen as a test of Europe's ability to restore fiscal discipline to the weak economies in its union and keep the decade-old currency viable.
"It's going to drop further," Tim Speiss, chairman of the personal wealth advisers practice at Eisner LLP in New York, said of the euro.
The dollar's rise pushed commodities prices lower, especially oil. That sent prices of oil companies like ExxonMobil [XOM Loading... ()
] and Chevron [CVX 77.11 
-3.08 (-3.84%) ] lower.
Greece passed a bill in its Parliament after heated debate that calls for unpopular cuts in public spending in pensions and other areas, as well as tax increases. Greece needed to approve the austerity measures to be eligible to receive a $141.9 billion aid package from the International Monetary Fund and the 15 other countries that use the euro.
Ohhhh man my poor stocks
In one of the most dizzying half-hours in stock market history, the Dow plunged nearly 1,000 points on worries about the spreading European debt crisis before paring those losses in an equally rapid rebound.
The euro fell further against the dollar, hitting a new 14-month low. The euro has tumbled against the dollar since last fall as faith in Europe's shared currency dwindles. Greece's debt crunch is widely seen as a test of Europe's ability to restore fiscal discipline to the weak economies in its union and keep the decade-old currency viable.
"It's going to drop further," Tim Speiss, chairman of the personal wealth advisers practice at Eisner LLP in New York, said of the euro.
The dollar's rise pushed commodities prices lower, especially oil. That sent prices of oil companies like ExxonMobil [XOM Loading... ()
] and Chevron [CVX 77.11 -3.08 (-3.84%) ] lower. Greece passed a bill in its Parliament after heated debate that calls for unpopular cuts in public spending in pensions and other areas, as well as tax increases. Greece needed to approve the austerity measures to be eligible to receive a $141.9 billion aid package from the International Monetary Fund and the 15 other countries that use the euro.
Ohhhh man my poor stocks
05-06-2010, 02:30 PM
#3
Team Owner
Something told me to dump my shit this morning. I only dumped about 70% though.
05-06-2010, 02:33 PM
#5
Drifting
Clearly someone must have put in some market orders, or many systems here issues some sell orders as levels hit... almost like the 80's computer "glitch".
Completely irrational selling. PG @54? You have got to be kidding me...
05-06-2010, 02:35 PM
#7
Team Owner
I sold stuff around 11:30, had no idea this was coming though. I'm sitting on the side lines until this calms down. This is like 2007-8 all over again.
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05-06-2010, 02:46 PM
#9
The sizzle in the Steak
Keep your panties on, people.
05-06-2010, 02:46 PM
#10
Drifting
IMHO, I would take this as an opportunity to pick up some "accidental" high yielders out there... You had some stocks that went from a yield of 3-4% and now at like 5-6% yield... Buy those and reinvest the dividends... unless you're a day trader... then nvm. 
You may want to make a position for tomorrow, jobs report coming out may trump whatever the ECB does with the Greek situation.
You may want to make a position for tomorrow, jobs report coming out may trump whatever the ECB does with the Greek situation.
05-06-2010, 02:49 PM
#11
Team Owner
Got out of F, TOL, VMW, today. Still holding C, NKE 
BTW, I sold this strictly on the fact that I didn't like the way things were going the last few days. I still have faith in them and will re-enter at a later date.
BTW, I sold this strictly on the fact that I didn't like the way things were going the last few days. I still have faith in them and will re-enter at a later date.
Last edited by doopstr; 05-06-2010 at 02:53 PM.
05-06-2010, 02:56 PM
#15
IMHO, I would take this as an opportunity to pick up some "accidental" high yielders out there... You had some stocks that went from a yield of 3-4% and now at like 5-6% yield... Buy those and reinvest the dividends... unless you're a day trader... then nvm. You may want to make a position for tomorrow, jobs report coming out may trump whatever the ECB does with the Greek situation.
You may want to make a position for tomorrow, jobs report coming out may trump whatever the ECB does with the Greek situation.
05-06-2010, 02:57 PM
#16
Traders here were crazy. My firm got lucky. Lots of guys were short at the time.
As they are reporting may have been a system error cause. Makes sense because things were flat until the crap hit the fan. There was nothing in the news for PG to drop like that.
Our computers took a beating for sure.
As they are reporting may have been a system error cause. Makes sense because things were flat until the crap hit the fan. There was nothing in the news for PG to drop like that.
Our computers took a beating for sure.
05-06-2010, 03:01 PM
#18
The Sicilian
Ya everyone's freaking out about Greece and the European Markets. Give it some time and be patient, it will rebound.
Wish I bought B of A stock a few months back!!
Wish I bought B of A stock a few months back!!
05-06-2010, 03:09 PM
#20
Most of the 15 euro-zone nations are scrambling to approve the bailout of partner Greece in time for Friday evening's summit of government leaders, with the big contributors poised to be on time.The euro-zone nations have pledged to contribute euro80 billion ($100 billion) of the euro110 billion ($140 billion) bailout plan for Greece over the next three years with the rest coming from the International Monetary Fund.
The 16 nations have pledged to make haste with the national approval of the funds and rescue package, hoping to have it finished for Friday's emergency summit. Major nations like Germany, France, Italy are likely to have concluded the process by then.
Crucially, the Greek parliament approved the Greek austerity bill, on which the whole program hinges, late Thursday despite major protests.
Germany, long Greece's toughest critic, was debating legislation that would provide the go-ahead to euro22.4 billion ($28.6 billion) in credit that Berlin wants to grant Athens.
It already passed the lower house's budget committee -- a day before a vote by the full house.
The coalition led by Chancellor Angela Merkel has a comfortable majority in parliament and could pass the law without opposition help. Nonetheless, Finance Minister Wolfgang Schaeuble has asked the opposition for support.
"The markets will pay attention to how the help is being backed on a national level," Finance Minister Wolfgang Schaeuble said. The Social Democrat opposition party is likely to abstain.
France, after Germany the No. 2 contributor to the plan with euro16.8 billion ($21.4 billion), already had the backing of the National Assembly since Monday and the Senate was expected to approve it late Thursday to finalize it. The two nations together already guarantee just under 50 percent of the euro-zone contribution.
In Italy, ministers are expected to approve an emergency decree during a Cabinet meeting on Friday for up to euro5.5 billion ($7 billion), almost a third of its share of euro14.7 billion ($18.7 billion). Finance Minister Giulio Tremtoni told parliament Thursday that the measure will not affect Italy's deficit, because it is a loan.
Spain, targeted itself by recent market speculation in the wake of the Greek bailout, plans to approve it early Friday by decree in a weekly Cabinet meeting, after which it must be approved by parliament -- most likely next week. Madrid is penciled in for euro9.8 billion ($12.5 billion).
Those four together almost provide 80 percent of the euro-zone loans.
Opposition has come from some small contributors.
Slovakia's Prime Minister Robert Fico says he first wants to see that "Greece is doing its homework." Fico said it was unlikely that Slovakia would provide its share of euro800 million ($1 billion) before the country's general election scheduled for June 12.
The Netherlands and Portugal are also set to approve it Friday.
The 16 nations have pledged to make haste with the national approval of the funds and rescue package, hoping to have it finished for Friday's emergency summit. Major nations like Germany, France, Italy are likely to have concluded the process by then.
Crucially, the Greek parliament approved the Greek austerity bill, on which the whole program hinges, late Thursday despite major protests.
Germany, long Greece's toughest critic, was debating legislation that would provide the go-ahead to euro22.4 billion ($28.6 billion) in credit that Berlin wants to grant Athens.
It already passed the lower house's budget committee -- a day before a vote by the full house.
The coalition led by Chancellor Angela Merkel has a comfortable majority in parliament and could pass the law without opposition help. Nonetheless, Finance Minister Wolfgang Schaeuble has asked the opposition for support.
"The markets will pay attention to how the help is being backed on a national level," Finance Minister Wolfgang Schaeuble said. The Social Democrat opposition party is likely to abstain.
France, after Germany the No. 2 contributor to the plan with euro16.8 billion ($21.4 billion), already had the backing of the National Assembly since Monday and the Senate was expected to approve it late Thursday to finalize it. The two nations together already guarantee just under 50 percent of the euro-zone contribution.
In Italy, ministers are expected to approve an emergency decree during a Cabinet meeting on Friday for up to euro5.5 billion ($7 billion), almost a third of its share of euro14.7 billion ($18.7 billion). Finance Minister Giulio Tremtoni told parliament Thursday that the measure will not affect Italy's deficit, because it is a loan.
Spain, targeted itself by recent market speculation in the wake of the Greek bailout, plans to approve it early Friday by decree in a weekly Cabinet meeting, after which it must be approved by parliament -- most likely next week. Madrid is penciled in for euro9.8 billion ($12.5 billion).
Those four together almost provide 80 percent of the euro-zone loans.
Opposition has come from some small contributors.
Slovakia's Prime Minister Robert Fico says he first wants to see that "Greece is doing its homework." Fico said it was unlikely that Slovakia would provide its share of euro800 million ($1 billion) before the country's general election scheduled for June 12.
The Netherlands and Portugal are also set to approve it Friday.
05-06-2010, 03:12 PM
#21
Drifting
One thing is certain... someone (or brokerage) lost a serious amount of money... CNBC is reporting rumors that it could have been a trading error... needless to say, someone is getting fired... That was probably a multi-billion dollar loss... ouch.
05-06-2010, 03:15 PM
#22
Team Owner
ACN dropped to 1 cent and then closed at $41 
05-06-2010, 03:31 PM
#25
Drifting
Yea, here's the sell imbalance...
Key thing to learn here... NEVER USE MARKET ORDERS. Limit orders or nothing. Clearly here someone screwed up as well as a computer glitch of some sort.
But it sounds like there was a 16b order instead of 16m order on S&P emini futures... According to CNBC (if i'm hearing it right).
Key thing to learn here... NEVER USE MARKET ORDERS. Limit orders or nothing. Clearly here someone screwed up as well as a computer glitch of some sort.
But it sounds like there was a 16b order instead of 16m order on S&P emini futures... According to CNBC (if i'm hearing it right).
05-06-2010, 03:35 PM
#26
Yea, here's the sell imbalance...
Key thing to learn here... NEVER USE MARKET ORDERS. Limit orders or nothing. Clearly here someone screwed up as well as a computer glitch of some sort.
But it sounds like there was a 16b order instead of 16m order on S&P emini futures... According to CNBC (if i'm hearing it right).
Key thing to learn here... NEVER USE MARKET ORDERS. Limit orders or nothing. Clearly here someone screwed up as well as a computer glitch of some sort.
But it sounds like there was a 16b order instead of 16m order on S&P emini futures... According to CNBC (if i'm hearing it right).
05-06-2010, 03:40 PM
#28
Moderator Alumnus
Reports from CNBC and our own sources suggest that it was a Citigroup (C) trader that accidentally entered a sell BILLION-size sell trade, when they meant to do million.
Since the market came back and only ended down over 3%, all the focus now is on what happened. There's going to be an investigation into Proctor & Gamble (PG) trading, Accenture (ACN) and the market as a whole.
http://www.businessinsider.com/cnbc-...r-error-2010-5
Since the market came back and only ended down over 3%, all the focus now is on what happened. There's going to be an investigation into Proctor & Gamble (PG) trading, Accenture (ACN) and the market as a whole.
http://www.businessinsider.com/cnbc-...r-error-2010-5
05-06-2010, 03:43 PM
#29
Drifting
Reports from CNBC and our own sources suggest that it was a Citigroup (C) trader that accidentally entered a sell BILLION-size sell trade, when they meant to do million.
Since the market came back and only ended down over 3%, all the focus now is on what happened. There's going to be an investigation into Proctor & Gamble (PG) trading, Accenture (ACN) and the market as a whole.
http://www.businessinsider.com/cnbc-...r-error-2010-5
Since the market came back and only ended down over 3%, all the focus now is on what happened. There's going to be an investigation into Proctor & Gamble (PG) trading, Accenture (ACN) and the market as a whole.
http://www.businessinsider.com/cnbc-...r-error-2010-5
I wonder if/how they'll revert these trades... I can't believe that 50k sell on ACN will be honored...
05-06-2010, 04:34 PM
#33
Go Giants
Im poor biatch...
05-06-2010, 05:55 PM
#36
Drifting
Hell, when the Dow was @ 6500, everyone thought the world was going to end...
Research for some good companies, with no (or very little) debt, that pay a decent dividend (3-5%). Done. Put your money in them, check and re-invest and move around every few months as needed. Don't get into the day trading side of things unless you know what you're doing. Buy quality stocks that pay dividends, then re-invest those dividends.
05-06-2010, 07:06 PM
#37
Карты убийцы
Stock investing is a funny thing. I hear colleagues bragging about their portfolios... the same colleagues with a $300K mortgage at 7% and $18K in credit cards at 14%...
Pay that shit off first... it's a guaranteed return.
Pay that shit off first... it's a guaranteed return.
05-07-2010, 09:11 AM
#38
Team Owner
I raised more cash today. I can't wait until this settles down. There is a lot of cheap stuff out there now 
05-07-2010, 10:46 AM
#40
Drifting
+1 We're just about @ a 8% pullback on the S&P... A little bit more and it will be time to pull the trigger on some of the discounts out there.