Posted on 02/27/2007 2:30:46 PM PST by Junior_G
(RTTNews) - CNBC Reports - Glitch around 2 PM caused Dow Jones to drop 200 points in short time...
(Excerpt) Read more at nasdaq.com ...
Stinks if you had a stop loss filled. Eek.
"The hatch just blew"
Glitch?
Thats a pretty mild word for something that cause a 200 point drop.
I would lean more towards hicup.
That's gonna suck. Don't see it on Yahoo yet.
Wall Street will form a committee to investigate and sick consultants on the problem. /so
Wow
416 points! Holy Moly!! That's a big ***drop***, due to a glitch, isn't it?
That's funny. I was watching that part of 'The Right Stuff' right about 3:00.
The article gives almost no information; but are they actually trying to say that the the 200-point drop was not based in reality? I hope they fill it in with more info...otherwise I'll assume it was some Tom Clancy-style attack on the U.S. economy. :)
In no time at all Pelosi will speak of the reason for it.
Of course it will be the usual, POTUSitic in her opinion.
It actually plummeted over 250 points -- then it quickly recovered 200 points.
Have the heads started rolling yet?
What the heck do they mean by a "glitch"?
WTF?
This should be veeeeeeery interesting. Who would that "comp"
to bump it back up 200 pts?
LOL.
from article:
http://blogs.wsj.com/marketbeat/2007/02/27/tabulation-trouble/
February 27, 2007, 4:46 pm
Tabulation Trouble
Posted by Chris Bain
Scott Patterson reports on the Dow industrials quick 3 p.m. drop:
The sudden, sharp decline by the Dow Jones Industrial Average shortly before 3 p.m. Eastern time today was triggered by a tabulation delay by Dow Jones data systems, which calculates the average. There was a temporary lag in calculation of the 30 large-stock average due to a surge in order flows as the market continued to tumble in afternoon trading, much like a clogged pipe. Just before 3 p.m., Dow Jones Indexes switched over to a backup system to calculate the average, which nearly instantly registered the huge move.
The glitch wasn’t the cause of the decline, but it did cause the drop to register far more quickly than it otherwise would have. Other indexes fell at the same time, but more gradually. Some traders noticed a discrepancy between futures contracts tied to the Dow industrials and the index, which directly tracks the stocks. Usually, the futures contracts closely track the overall average.
“There was a huge disconnect between the Dow futures and the Dow average” of about 200 points, said Brian Williamson, an equity trader at Boston Company Asset Management.
"... otherwise I'll assume it was some Tom Clancy-style attack on the U.S. economy."
Well, then, a Tom Clancy-style do-over will be in order, lol.
The eyes of all stock-market followers were glued to their computer screens Tuesday to see just how far the Dow Jones Industrials Average could fall.
It was end-to-end action, with the blue-chip barometer ($INDU : Dow Jones Industrial Average
News , chart, profile, more
Last: 12,216.24-416.02-3.29%
4:30pm 02/27/2007
$INDU12,216.24, -416.02, -3.3%) tumbling 416 points, the biggest one-day point drop since September 2001. At one point during the session, the point loss reached 546 points. See full story.
But if you blinked at around 3 p.m. Eastern, you would have missed the knockout punch, as the blue-chip barometer plunged nearly 200 points in an instant. The move was so severe that many believed it was just a computer glitch.
"It happened, but it didn't really happen," said Steve Goldman, chief market strategist at Weeden & Co. He said the move was "right" in the fact that the market was down about 500 points, but it was wrong in the size of the index's move at that moment.
A look at an intraday chart of the Dow shows a sudden move from around 12,343 -- a 289-point loss on the day -- at 2:58 p.m. Eastern to about 12,165 -- a 467-point loss -- within the next minute. See interactive chart (set time options to "1 day" and "1 minute").
"I believe that stock data was just not being updated in a timely fashion," Goldman said. "When it was, right around 3 p.m., the index just fell."
http://www.marketwatch.com/news/story/if-you-blinked-3-pm/story.aspx?guid=%7B07F2C85A-A4A0-4A8C-AEDE-5AF7A3C1B130%7D
No idea. I don't know much about the technical processes at NYSE. The best case scenario in my mind is that there were a lot of sell orders that got backlogged and then all went through at once. Other than that, maybe there are usually artificial controls in place that failed (I hope that's not how it works over there), or that the plunge is somehow artificial (the most frightening scenario).
Stockbroker shrugs and says, "Fluctuations."
Chinese man says "Fluctu Americans too! You down 400!"
Al Bore says it's all due to global warming!!
Hillarity says that as the smartest person in the world she alone knows how to fix this.
Obama says he would never play the "race card" but that it's obvious the honkies who run Wall St. just need enough brothers to show them how to "bring it".......
Mo1, see RDTF's post #18. It was the first of my three suggested scenarios.
Lol....if it's not on paper then it never happened!
".....but it did cause the drop to register far more quickly than it otherwise would have."
Hmmmm, so "real time" really isn't.
I wonder WHY they have a delay at all?
Who what benefit from that?
Follow da money.
Yet another reason why I'm glad I quit daytrading.
"good, it’s about time! I guess Bush’s last hiding place is being destroyed. Now he can’t even brag about the stock market, boo hoo!"
On a Wall Street Journal site. Geez.
"It happened, but it didn't really happen,"
Kerry was involved!
This is what happens when you elect Liberal's. Gas goes up. stocks go down.
Yep,....that's a real glitch...
Geez is right. Unbelievable
More proof...they walk among us.
In a "416 point" drop, the number "416" whether historically high or low is irrelevant.
The relevant number is what % of the market total before the drop does "416" points represent.
I think it is something in the neighborhood of 3 - 3.3% Even 1 "500 point" drop represents 4%.
I think either number will be seen as a "correction" to the climb the DOW has been making for many months. In the past six months alone, one portfolio of balanced fund invstments has risen more than 8% and twice than on the year. And, I am sure that not all of them will be included in the current "correction".
Just watching Foxnews Special Report and there was mention of some software problems with a program that is involved with a running calculation of the Dow Jones avg.....
IBRYMB!
LOL! I thought the clutter in my room was bad. ;-)
I didn't know Dr. Perry Cox is a trader.
Let's go all out and call it a belch. lol
This is more than a glitch.
A glitch is dropping a spoon on your lap. This is getting the entire dishwasher dumped on your head.
Soros did it?
Man, they had better fix that. If that's true, that's a mega-billion dollar glitch, and it will shake the foundations of financial institutions who rely on accurate information.
When you're in your 20s, who cares what the market is doing? You've got little money in it anyway, and every drop in the market is an advantage in dollar cost averaging.
When you're in your 50s, thirty years later, you're talking some serious bucks. Market swings can determine your retirement lifestyle. You can't afford for a "glitch" to move you from a nice home into a small apartment in the bad part of town.
When you're post 60, you're probably moving from equities to fixed return investments with less risk. But any "glitch" that adds uncertainty to the market is not helpful to anyone.
The PPT hit the wrong button.
Just dmn.
save
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