GlesgaKiss

I just checked the Bloomberg app on my phone to discover this! Unbelievable. Anyone have any idea as to what caused this? Most of the drop happened between half 7 and 8. Could electronic trading have something to do with it? Some news reports saying it could have been a bad program.

This is from marketwatch -

"Several market watchers said they heard a major firm may have accidentally released an errant program, where a trader accidentaly placed an order to sell $16 billion, instead of $16 million, worth of e-minis, the futures contracts tied to equity indexes."

f1_fan

iTrader: (9)

3.2% at close

GlesgaKiss

I'm not talking about the close.

FlightMan

Google:- Greece and Contagion.

Trout

iTrader: (1)

Something not right - Accenture fell 99.9% from around $42 to 4 cents.

I wish I had managed to buy at 4 cents.

GlesgaKiss

Yep, unbelievable. Definitely looking like a trading error.

Dedrater

How will effect me.........etc

scud8

iTrader: (1)

The pound is tanking against the dollar this evening (down to 1.47, from 1.49 at UK close), possibly a reaction to the exit polls suggesting a hung parliament. BBC have just said the bond markets are opening specially at 1am, so it will be interesting to see what happens to yields (my guess is sharply upward if the predictions are still for a hung parliament).

Dedrater

Scud, how will I be gutted by this? ISA x 3 banks and a main saving account?

scud8

iTrader: (1)

A big surge in inflation reducing the buying power of your savings and income. The next government gilts auction is on Tuesday for £2.25bn of 17 year bonds with 4.25% yield. If gilt yields on the open market are significantly above that there is a risk that the auction will fail at which point the government has the choice of defaulting on existing gilt coupons/repayments or turning on the printing presses - and guess which way they will go. Cue inflation.

Three months ago the government were able to get 10 year gilt auctions away with a yield of 3.75%. The most recent 10 year gilts had to carry a yield of 4.75%, so the market is already demanding a higher return to buy UK government debt.

GlesgaKiss

Sorry mate, didn't know what you meant there. Good explanation there from scud, but if you're just talking about being affected by this one day blip in the stock market, you won't be.

ScoTTyB

Sick fall, blatant mistake.

Dedrater

So, get cash? Probably same thing but I don't understand it.

Keep it in the bank, or pillow it, the difference between the two is alien to me.

If money is money.

Captain Carbon

The cause looks like a fat finger...BB are saying they MIGHT be busting any losses/gains over 30% on the DJI.

FTSE opened up pretty much in line @ 1am...it was more of a precaution anyway to save the 7am madness (yeah, right...)

Cables down but that wasn't obvious ...if it's hung, wave goodbye

Stops people...USE STOPS!!!

* Edited FYI Cable/FX doesn't close apart from the weekend...it's 24 hour (you may get realised p&l but thats just finance adjustment)

GlesgaKiss

I was reading a bulletin board last night after it happened and there was a guy that had taken a long spread bet on the Dow futures shortly beforehand... without a stop!

Looks like it's going to be a hung parliament at this stage.

scud8

iTrader: (1)

Gilt yields look to be holding up this morning, but the FTSE is tanking - down nearly 2% shortly after opening.

GlesgaKiss

Gold back above 1200 too, even with a stronger dollar! People flocking to it for a bit of safety?

scud8

iTrader: (1)

Lots of red ink on the gilt screens now - the news must be starting to sink in.

GlesgaKiss

Pretty depressing stuff to be honest, this is the last thing we needed.

GlesgaKiss

The FTSE has just been down 4% and so volatile! This isn't just your typical correction, there's much more to it.

marky1

Makes you realise how little real volume is in these markets. Most of it is made up of black boxes and dark pools that pull orders at the first sign of volatility.
I have a hunch this may have been done on purpose..... and if so they made huge profits on it.

stedee

iTrader: (4)

traders are nervous characters and they are ****ting about greece and whos coming next spain, portugal arent too bad a problem but ive heard if italy are in trouble thats deep **** because germany and france wouldnt be able to bail them out and then there`s us lot aswell,

the eurozone is in a right mess at the mo because germany is doing well and needs to up interest rates to counteract inflation but the rest of the eu needs low interest rates to boost spending etc so know one knows what to do. i think its good we are not one currency with the euro at the mo could save our bacon

Dingdongler

It was only a matter of time mate.

Now where's that snetter who predicted it would be below $1000 by now

On a different note Alan, what do you think about a little punt on Barclays?

stedee

iTrader: (4)

how about bp when those claims start rolling in -lol

marky1

He's here and he was wrong. Although it's really irrelevant because no matter how much it dropped you would still be in. It came off nearly 15% and you didn't care. You stated by saying you were in it for the money and ended up saying it was a hedge. I'd never stay in a market that was I was 15% offside on because it would cost me too much. I cut things when I am wrong.

Dingdongler

No I didn't care as I knew it would be back to this level so why stress myself out by trading in and out? At that time I was also only holding physical so difficult to do so.

The physical was bought in the run up to (but before) potential financial armageddon when there was a real risk that fiat currency may become worthless.
That is not likely to happen for now so when it came off 15% I bought electronic gold ( equiv $1070) and so now have have seen a modest but nice 12% return on that.

Now before things get out of hand again I'll say that I accept that you are a professional trader, I am not. I know nothing of trading especially when it comes to shares/futures etc etc. But I know gold very very well

We are still not all the way through the gold bull run, it has a few years to run yet. We will see at least $1500 gold

GlesgaKiss

Yeah, go for it.

p.s. mods, can you edit this post so it looks like I made the call last week.


There's no saying this will be the turning point, which is why I'm waiting a few days for confirmation. Sure, there's sharp rally today, but there's no saying it will continue once the numbers are crunched over this aid plan. Will be interesting to see how the market takes it over the coming days.

Captain Carbon

Gold @ 1500? MINE!....2k and above, just you wait

As for cutting things when you're wrong, yes that's a very good thing to stick to. However i'm a double up man myself

I'm surprised no-ones thought about the obvious trade here...sterling swiss anyone?

Be lucky