Thursday, May 6, 2010

Trading Error - Give Me A BREAK!!!!

Good grief. There is nothing wrong in the world. Everything is fine. We had a trading error which caused the crash. Go about your business.

This is absurd. Were there human errors today? Absolutely. This is a symptom not a cause. The market started accelerating to the downside after we broke 1150. I said in an earlier post (before the crash) the bounce off of 1150 was a gift to short. So we break 1150, selling starts to intensify, people start panicking, and the market goes whoosh. Was there a billion instead of a million done? Possibly. I am not going to say absolutely not but it was after resistance was broken. Market was liquidating and it was stress in the situation as much as anything else. The liquidity that has been a farce for months that many people have pointed to just isn't there.

Listen to this video. The story seems way to canned to me. Automatically blaming a synthetic security? How do we know that? One guest says we have these every few years. Nothing to worry about. ARE YOU KIDDING ME?????? This was the biggest drop in the history of the markets. This included 2008. Biggest percentage drop since 1987. We don't have this every few years where we have a human error. In fact, there has never been a human error quite like this. But lets believe right away its a human error.

Also my experience on Wall St. is this computers would flag this anyway. How in the world does a trade go for a billion over million? How does that get executed? That just doesn't happen.

This whole thing is some quickly manufactured story to calm things down. Reduce headline risk. Calm Asia down before the markets open. Also Wall St could be very wrong on which side of the trade they on. Leak these stories, get the market to rally and sell as fast as they can to get positioned correctly.

There were many bad trades today. Not denying that at all. But it is all a symptom, not a cause. Just absurd to think otherwise. Worse than absurd. Complete denial that we are f****d because of dumb after dumb after dumb decision we have made over the last five years.

I will have more later on my thoughts (complete clueless-ness) on where we are going.

1 comment:

themog said...

Nothing to see here. All is well, go on about your business. Seriously though, the ability of the average CNBS commentator to rationalize anything bearish is just so far beyond absurd i want to strangle them. Its not like today is some surprise from left field trading error or not. Have been afraid of a day like this for some time now.