Dow Falls in High-Speed Drop

[flintlock]

Anyone paid attention to the stock market this week? Or is this just a forum about social injustice?

http://online.wsj.com/article/SB1000...NewsCollection

[ViC78]

Re: Dow Falls in High-Speed Drop

The bid-ask spreads got crazy over there for a while. On DBO (admittedly not widely traded), the bid was 26.45 and the ask was 27.90.

Lots of stops blown out either way today, the market makers seem to be sh!tting their bed.

[dummass]

Re: Dow Falls in High-Speed Drop

Anyone paid attention to the stock market this week? Or is this just a forum about social injustice?

http://online.wsj.com/article/SB1000...NewsCollection

As a member of the plunge protection team, I was a little busy. What non-event were you referring to?

[charliebrown]

Re: Dow Falls in High-Speed Drop

Has anyone ever had a really low limit order and had it fill on one of these non-linearities.
HAP today says the low was .15 what's up with that? No bids? It was trading at 32.00 this morning. It is now back to around 30. If I had a limit order at say, 20.00, would it have hit??

TLT went non-liner too. It hit 100.00. Then fell quickly down to 96.00
FXC hit 92.50, then immediately popped back up to 94.xx
Even SPY hit 106. then promptly returned to 110. Would a 107 for a couple of hundred shares be filled?

Trading stragety? Set another non-linear limit, if it fills sell quickly?

[jiimbergin]

Re: Dow Falls in High-Speed Drop

On Finster's thread, Correction due soon, he had an order to by the Dow at 10,000 (DIA) and it was filled.

[jpatter666]

Re: Dow Falls in High-Speed Drop

I feel sorry for anyone with lots of stop-losses. They got taken to the cleaners.

[ViC78]

Re: Dow Falls in High-Speed Drop

If I had a limit order at say, 20.00, would it have hit??

Certainly possible if you were lucky and the person on the other side of the trade had set a market stop-loss order.

[thriftyandboringinohio]

Re: Dow Falls in High-Speed Drop

I feel sorry for anyone with lots of stop-losses. They got taken to the cleaners.

That could make a great consipracy theory. TPTB engineer a violent event like this; the rubes all get stoped out; TPTB use high-frequency trading to front-run the whole damn thing. jpatter666, you're a genius!

[charliebrown]

Re: Dow Falls in High-Speed Drop

I don't use stops anymore, I've been taken out too many times on spike downs.
Last year I got stopped out of GDX at something like intra-day 30 --- 27 --- 30. I did not
get back in, until 40. I lost a lot of money on that one.

[thriftyandboringinohio]

Re: Dow Falls in High-Speed Drop

I don't use stops anymore, I've been taken out too many times on spike downs.
Last year I got stopped out of GDX at something like intra-day 30 --- 27 --- 30. I did not
get back in, until 40. I lost a lot of money on that one.

I love my stops. They are warm and fuzzy and keep the monsters away...

[jpatter666]

Re: Dow Falls in High-Speed Drop

That could make a great consipracy theory. TPTB engineer a violent event like this; the rubes all get stoped out; TPTB use high-frequency trading to front-run the whole damn thing. jpatter666, you're a genius!

Well, my brother *did* write that quant book (and I've been suspicious of program trading ever since).

[jpatter666]

Re: Dow Falls in High-Speed Drop

I love my stops. They are warm and fuzzy and keep the monsters away...

I use stops on my speculative plays. There are other long-term investments (i.e. my long-term CEF/GTU holds) that have no stops, because I've no plans to sell for a LONG time.

[charliebrown]

Re: Dow Falls in High-Speed Drop

Yes, I think I did not think my post through. I used to use stops on just about everything. Now I only use stops when I really do decide to sell, or if the stop hits, I will not be sorry. I really wanted to build a GDX postion at that time, but after reading the books on trading that said don't take more than a 3%, 5% etc hit, get out.

I do own some EFA, that I don't think I really want anymore. I am glad I didn't have a stop set today. I would have been stopped out way below the closing price.

Well look at that, EFA took the same whammer as SPY today at the same time. P&G is not part of EFA is it?? The entire world market burped. I might have been stopped at 47. Tomorrow we will see if that would have been a good thing.