Here's what happened. It's so simple according to Crammer.
#1
Posted 27 February 2007 - 07:40 PM
When I called for "a top" 9 days ago, I was thinking a little bit less selling.
Glad I was flat. And no, I didn't buy the close. I don't surf in a tsunami.
Tonight Crammer said:
"Some guy probably just hit the wrong button.
Somebody meant to sell millions and he sold BILLIONS!"
Well that makes me feel better.
I guess this begins to correct that 6 month old "Big Hairy Purple Divergence."
We got almost 1/2 of that previous 100 S&P points today.
We will see greed competing with fear tomorrow.
http://stockcharts.com/c-sc/sc?s=$NYMO&p=D&yr=2&mn=0&dy=0&i=p37941675807&a=30820282&r=4398.png
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
#2
Posted 27 February 2007 - 08:30 PM
http://stockcharts.com/c-sc/sc?s=$NYMO&p=D&yr=3&mn=0&dy=0&i=p55595553298&r=5346.png
"In order to master the markets, you must first master yourself" ... JP Morgan
"Most people lose money because they cannot admit they are wrong"... Martin Armstrong
http://marketvisions.blogspot.com/
#3
Posted 27 February 2007 - 08:52 PM
Here's what Jim Cramer had to say at TheStreet.com:
You didn't even have time to panic.
The system failed us, breaking down too fast for you to panic.
We totally collapsed between 2 p.m. and 3 p.m. ET, dropping 200 points. All the circuit breakers and all of the rules that were put into place years ago after 1987 just utterly failed.
Then we had the backdraft, and it happened so fast we don't yet know how it went wrong. But it did, with the sellers' heavy tinder. Maybe that exacerbated the hard-selling ETFs. Whatever it was, the wick caught and then flared -- when we thought we were fireproof.
The buyers, and there are plenty of them, simply couldn't get to the floor fast enough to buy and put out some of that selling.
In the old days, when things were sane, we would have had order imbalances, a stoppage of trading. We didn't get that today. We got nothing. We got nothing but a gap, and it reminded us of the old days, when we used to have to have bids way underneath. In other words, be ready to buy because of the whims of sellers.
But there's another difference now. You can force the market down. The old rules put into place in the 1930s, the ones that were meant to stop motivated sellers from breaking the market are all gone now, taken out by a complacent Securities and Exchange Commission that never dreamed of what could happen today. My sources indicate that a big options trade went awry and some concentrated ETF selling simply cut through this market as easily as a knife through butter.
Edited by Rogerdodger, 27 February 2007 - 08:55 PM.
BIGGEST SCIENCE SCANDAL EVER...Official records systematically 'adjusted'.
#4
Posted 27 February 2007 - 09:00 PM
Edited by Russ, 27 February 2007 - 09:05 PM.
"In order to master the markets, you must first master yourself" ... JP Morgan
"Most people lose money because they cannot admit they are wrong"... Martin Armstrong
http://marketvisions.blogspot.com/
#5
Posted 28 February 2007 - 10:23 AM