5 replies to this topic

[2cents]

The DOW Jones admitted a glitch in the system that resulted in inaccurate totals on Tuesday. This is highly unlikely. The computers running the I/O trading in NYSE can calculate the entire days trading no matter what the volume in less than a second. This was clearly a ploy to buffer the volocity of the selling. They won't admit the curbs don't work with the current electronic plateform.

[jjc]

The DOW Jones admitted a glitch in the system that resulted in inaccurate totals on Tuesday. This is highly unlikely. The computers running the I/O trading in NYSE can calculate the entire days trading no matter what the volume in less than a second. This was clearly a ploy to buffer the volocity of the selling. They won't admit the curbs don't work with the current electronic plateform.

I'm not saying there wasn't any thing fishy going on, In fact I believe there was, however it could
have been a network melt down that feeds these computers.

[2cents]

The DOW Jones admitted a glitch in the system that resulted in inaccurate totals on Tuesday. This is highly unlikely. The computers running the I/O trading in NYSE can calculate the entire days trading no matter what the volume in less than a second. This was clearly a ploy to buffer the velocity of the selling. They won't admit the curbs don't work with the current electronic platform.

I'm not saying there wasn't any thing fishy going on, In fact I believe there was, however it could
have been a network melt down that feeds these computers.

The only bottleneck in the process is WAN hubs. But most of these incoming are VPN threads which again can handle an incredible amount of traffic and the average order size is a few bites of info. There's little human intervention anymore and they all have ways to bypass the curbs. If Goldman wants out of a position their out in seconds providing there's a buyer and even then they sell much of their inventory to the retail accounts. Remember these are the greediest people in the world.

[Cirrus]

The market dove because there was a or several highly motivated sellers. That's it. The data may or may not have been reported on a delayed basis but that doesn't change what happenned.

[jawndissedi]

The dog ate my homework, the check's in the mail, I'll respect you in the morning . . . . next thing I know you'll be saying that we have open and transparent markets, that it's a level playing field, and that small investors have the same opportunities as large ones. Hilarious!

Wise up, people:

What really happened on Tuesday

February 28, 2007
Cara’s Daytrader Bull Board, Wed., Feb. 28, 2007, 7:19 AM

At 3:00pm ET yesterday the Dow 30 index dropped 200+ points in literally seconds. There was commentary in the media that the trade data had fallen behind and that had caught up at that moment. I believe otherwise. ADDENDUM

Having been in the business at a high level, I believe a rational explanation is that margin calls were sent to under-margined accounts during the day. With one hour to go, the broker-dealers would take action by selling out accounts of under-margined clients that had not responded to demands.

What concerns me here is (i) the media’s willingness to spin misinformation that is all too often manufactured by Humungous Bank & Broker, and (ii) the opportunity for “insider” trading by staff at the HB&B firms who are in a position to know the status of under-margined accounts and margin calls.

On the first point, I am not surprised that HB&B would not own up to the problem, but would encourage the public to believe that exogenous forces were at work. After all, they know full well that the public resents the degree of control that HB&B, ie, the credit-lending sell-side, has in the casino we refer to as the capital market, a market by the way that ought to be under the control of the owners and managers of capital, ie, the buy-side.

With respect to the second point of my concern, it was in October 1987, the Black Monday market crash (much worse than yesterday’s by about a factor of five) where staff at HB&B literally stopped serving clients in order to take care of their own orders. Because of the proof of that, the SEC subsequently allowed the creation of SOES, ie, the Small Order Entry System, which is an electronic order facility for the public that took orders direct to the market. SOES then served as the genesis of day trading, and life on Wall Street materially changed thereafter.

It is a fact of life that change is stressful. The reversal of market trends from Bull (where people most easily make money) to Bear (where they most easily lose it) is high up on the list of life’s greatest stresses for many people. Unfortunately, the process is a long and drawn out affair.

We are not dealing with the guillotine where the damage is taken and accepted with a single blow. As a former broker, and one who was responsible at times for issuing margin calls and selling out accounts, I can assure you that most clients looked upon me with satisfaction that I was the executioner. It is an odd quirk of human nature that many people cannot make decisions. They harbour a fear of failure.

So the market trend is in the process of change. Change hurts. Wealth will be lost. Decisions need to be made – or they will be made for you.

That’s life. The market is life. We are the market. Not HB&B. Us.

[2cents]

The dog ate my homework, the check's in the mail, I'll respect you in the morning . . . . next thing I know you'll be saying that we have open and transparent markets, that it's a level playing field, and that small investors have the same opportunities as large ones. Hilarious!

Wise up, people:

What really happened on Tuesday

You mean it's not? Are you sure?