Dow drops 8%

#1

Post by px » Thu, May 06, 2010, 6:55 PM UTC

Dow drops 8%
google.com

Re: Dow drops 8%

#2

Post by rjett » Thu, May 06, 2010, 7:08 PM UTC

...and then recovers 700 points less than 20 minutes later. Just a little volatility out there...

Re: Dow drops 8%

#3

Post by joshfinnie » Thu, May 06, 2010, 7:09 PM UTC

Luckily it seems to be rebounding. As the Dow approaches 11,000 wasn't it not long ago we were saying it might never get back to 10,000. Funny how that works. Just wish I had more money to invest!

Re: Dow drops 8%

#4

Post by ahk » Thu, May 06, 2010, 7:11 PM UTC

HFT algos going crazy? ZeroHedge is going to have a field day with this one

Re: Dow drops 8%

#5

Post by smakz » Thu, May 06, 2010, 7:11 PM UTC

It's amazing how many of the automated trading programs think exactly the same.

Re: Dow drops 8%

#6

Post by whakojacko » Thu, May 06, 2010, 7:14 PM UTC

ahk wrote: post #4

HFT algos going crazy? ZeroHedge is going to have a field day with this one

that was my first though too, but Im hardly knowledgeable in these things.

Re: Dow drops 8%

#7

Post by amvp » Thu, May 06, 2010, 7:28 PM UTC

"I wish I had a definitive answer," said William Fitzpatrick, an equities analyst at Optique Capital Management. "I think the information from Greece and Europe continues to get worse and that is what is weighing on investors."

The phrase 'weighing on investors' suggests that they are making measured decisions, and investing carefully, concerned with the long (or even medium term) prospects of what those investments stand for. None of that really seems reflected in the way the system operates today. It seems to me, the large part of the transactions are automated and so far disengaged from the real world (derivatives etc) that they are effectively meaningless. Everytime the market does move, every expert has their own interpretation of what the Brownian motion means today.