Is the stock market going to tank?

**coreshot-tourettes** · 05-06-2010, 01:21 PM

Europe literally just dropped off the board. All lending in the EU just stopped dead. Spreads blowing all over the place. VIX over 40. Bloomberg knocked offline. Jesus.

**Moeghoul** · 05-06-2010, 01:23 PM

Trichet!! Trichet!! Where are you???? Mon Dieux!

**Toadman** · 05-06-2010, 01:25 PM

Hold on to your asses, here we go for a ride!

By TIM PARADIS, AP Business Writer Tim Paradis, Ap Business Writer – 11 mins ago
NEW YORK – Stocks plunged Thursday as investors succumbed to fears that Greece's debt problems would halt the global economic recovery. The Dow Jones industrials slid almost 1,000 points before recovering to a loss of 328.

The sudden drop was a painful flashback to the worst days of the 2008 financial crisis. Computer programs intensified the selling while investors watched protests in the streets of Athens on TV. Fears are running high in the financial markets that the Greek government will not be able to implement austerity measures that would enable it to contain its debt problems. And, in turn, that the country's problems will hurt other economies in Europe and even the U.S.

The Dow's gyrations showed the high emotions in the markets. Down 998.50 points in mid-afternoon, it recovered less than an hour later to a loss of 328. Meanwhile, interest rates on Treasurys soared as investors sought the safety of U.S. government debt. The yield on the benchmark 10-year note, which moves oppoosite its price, fell to 3.37 percent from late Wednesday's 3.54 percent.

**Toadman** · 05-06-2010, 01:28 PM

Originally Posted by grapedrink

everything appears to be back to normal now, im sure Goldman Sachs made a killing

Fixed it for you.

**coreshot-tourettes** · 05-06-2010, 01:29 PM

This was no glitch. Every single lending desk across the EU flatlined at the same time. This is fucking real and not a drill.

Someone on another board hit a bid for half a million $11K SPY $72 puts (normally a $5K trade) and is showing screenshots of his account - someone hit his bid and he just made $4.4B provided the trade goes through.

**AKPogue** · 05-06-2010, 01:37 PM

Originally Posted by coreshot-tourettes

This was no glitch. Every single lending desk across the EU flatlined at the same time. This is fucking real and not a drill.

Someone on another board hit a bid for half a million $11K SPY $72 puts and is showing screenshots of his account - someone hit his bid and he just made $4.4B provided the trade goes through.

I know jack shit about finance but what I gathered from your post is that some guys made $4.4B off of an investment of $11k. Is that for real? Talk about hitting the lottery if that is what you are saying!!

**grapedrink** · 05-06-2010, 01:38 PM

lesson 1: when the market is crashing don't put in a market sell orders
lesson 2: we should all put in limit orders at ridiculously low prices just in case this ever happens again.

$5 says the dow closes up today

**coreshot-tourettes** · 05-06-2010, 01:42 PM

Originally Posted by AKPogue

I know jack shit about finance but what I gathered from your post is that some guys made $4.4B off of an investment of $11k. Is that for real? Talk about hitting the lottery if that is what you are saying!!

Not quite. Some automated system somewhere blew a gasket and was offering $11K to buy options to buy shares worth $72. Normally these puts are so far out of the money that they trade at pennies. I'd estimate the guy's investment was about $5-10k.

**coreshot-tourettes** · 05-06-2010, 01:43 PM

Rumor: 3 major hedge funds blew up. Citibank's prop desk is WIPED OUT. Margin calls are now in the process of taking out many others. Tomorrow is going to be EVIL.

**4matic** · 05-06-2010, 01:56 PM

I bought BRK.B. @$74.06 and RPMGX moc. More tomorrrow.

**AKPogue** · 05-06-2010, 01:59 PM

Originally Posted by coreshot-tourettes

Not quite. Some automated system somewhere blew a gasket and was offering $11K to buy options to buy shares worth $72. Normally these puts are so far out of the money that they trade at pennies. I'd estimate the guy's investment was about $5-10k.

$5-10k for $4.4B.

**Platinum Pete** · 05-06-2010, 02:07 PM

Originally Posted by coreshot-tourettes

Rumor: 3 major hedge funds blew up. Citibank's prop desk is WIPED OUT. Margin calls are now in the process of taking out many others. Tomorrow is going to be EVIL.

Elaborate, please.

**liv2ski** · 05-06-2010, 02:09 PM

Originally Posted by 4matic

I bought BRK.B. @$74.06 and RPMGX moc. More tomorrrow.

Good luck with that. At this point I am pretty much out of the market, waiting for more shit to hit the fan before going with ProShares UltraShort S&P500 (SDS). I hope I am wrong, but we will see how Greece plays out.

**4matic** · 05-06-2010, 02:14 PM

Originally Posted by liv2ski

Good luck with that. At this point I am pretty much out of the market, waiting for more shit to hit the fan before going with ProShares UltraShort S&P500 (SDS). I hope I am wrong, but we will see how Greece plays out.

Hoping China gets spanked tonight. Buying CHN and Asia ex-japan tomorrow.

**Toadman** · 05-06-2010, 02:15 PM

Originally Posted by Platinum Pete

Elaborate, please.

A lot of traders are going to realize their stop loss limit orders kicked in when the DOW went into freefall. Going to take a few days to sort out the losers from the really big losers. Folks in Europe are going to have indegestion when they wake up on Friday morning.

Has the Euro reached parity with the USD yet?

**coreshot-tourettes** · 05-06-2010, 02:23 PM

This was not a fat fingered trade on P&G, don't believe them. The crash was in full swing well before the 39.70 low tick on P&G. This was organic.

**woodstocksez** · 05-06-2010, 02:30 PM

Originally Posted by coreshot-tourettes

This was not a fat fingered trade on P&G, don't believe them. The crash was in full swing well before the 39.70 low tick on P&G. This was organic.

And that explains why Accenture apparently went to $.01?

**liv2ski** · 05-06-2010, 02:32 PM

Originally Posted by Toadman

Has the Euro reached parity with the USD yet?

1.00 EUR = 1.26087 USD

**coreshot-tourettes** · 05-06-2010, 02:35 PM

Originally Posted by woodstocksez

And that explains why Accenture apparently went to $.01?

Yes. This is what's called a "no-bid". When liquidity goes to nothing, those wanting to sell have no one to buy, and the market making algos will sell to anyone at any price to keep the market going. If there literally is no one, then the price will go to zero.

**4matic** · 05-06-2010, 02:36 PM

Originally Posted by coreshot-tourettes

Yes. This is what's called a "no-bid".

Can be true. That's how MM's take themselves out of the market after hours.

**Hong Jong Fuey** · 05-06-2010, 02:36 PM

Originally Posted by coreshot-tourettes

This was not a fat fingered trade on P&G, don't believe them. The crash was in full swing well before the 39.70 low tick on P&G. This was organic.

How do you explain uptick literally minutes later?

Just got this im from a Barclays trader:

"Supposedly Citi had an error. They were supposed to sell $60mm worth of S&Ps .. they sold $60 BILLION by mistake. At one point today, the market was down 1400 points. the STock ACN traded at $0.01.."

Second time I've heard reference to a major Citi screw up.

I get that the EU is totally backwards right now, but downtick and subsequent (and almost simulatenous) uptick on PG doesnt make sense.

**woodstocksez** · 05-06-2010, 02:39 PM

Originally Posted by coreshot-tourettes

Yes. This is what's called a "no-bid".

Explain to this finance jong. A bid that's not honored because deemed "not real" for some reason? To me, it looks like a glitch in the system somewhere, some way. If this is all real, then why the rapid bounce back to the levels just before the bottom fell out (edit - referring to the broader market, not just Accenture or P&G)?