World economy talk

[uls]

flight to USD

USD index (1 year)

[uls]

EUR USD below 1.27

Greece CDS above 900 (above 700 is panic level)

[uls]

Gold close to $1,200



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things are really getting bad

an index that tracks sovereign credit risk -- the Markit iTraxx SovX Western Europe index hit 168 (first time it went above 160)

the contagion is really spreading

--

[Monseratto]

WTH happened to the Markets last night?!?

Stocks Plunge as Trading Glitch Suspected- Reuters

Stocks plunged 9 percent in the last two hours of trading on Thursday before clawing back some of the losses as the escalating debt crisis in Europe stoked fears a new credit crunch was in the making. The Dow suffered its biggest ever intraday point drop, which may have been caused by an erroneous trade entered by a person at a big Wall Street bank, multiple market sources said.

The Dow Jones industrial average dropped 347.80 points, or 3.20 percent, to 10,520.32. The Standard & Poor's 500 Index fell 37.75 points, or 3.24 percent, to 1,128.15. The Nasdaq Composite Index lost 82.65 points, or 3.44 percent, to 2,319.64.

An index known as Wall Street's fear gauge, the CBOE Volatility Index closed up more than 30 percent at its highest close since May 2009. It had earlier risen as much as 50 percent.

ECB couldn't get its act together and EUR continues to drop (EUR/USD 1.2631). Oil nearly lost US$ 10 in value in two day.

Gold and Treasury bills the in thing...

Treasury prices skyrocket as stocks plunge
Treasurys soar higher on ongoing worries about European debt; 10-year yield at 3.40 pct

http://finance.yahoo.com/news/Treasu...&asset=&ccode=

[tidus1203]

Kaya nga sinasabi ko nakakatakot talaga yung ganitong klaseng market... Spectator mode muna ako... Japanese Yen up more than 300 pips and the British Pound loss more than 300 pips. The Euro fall yesterday seems mild compared to the fall in other currencies...

Looks like the so-called W shaped recovery is in the 2nd leg... Gold up $20 by the way! Safe assets are really soaring. Gold, USD, and yes the Yen (highest of all in safety ratings )

[tidus1203]

Here is the Dow glitch plunge... 700 pts drop in ONE GO!

[Monseratto]

Heard the news that the machine traders are under investigation and all trades that were entered by them last night will become void...

Stop the Machines! Save the Dow: Today's Outrage

NEW YORK (TheStreet) -- Machines attacked the Dow and sank the stock markets today.

There's no other explanation for what happened on the U.S. exchanges. Only machine trading could shave almost 1,000 points from the Dow Jones index in less time than the typical hard-working American takes for lunch.

Even if a human set it all in motion with a so-called "fat-finger error" (that's the scuttlebutt at the moment) -- automated trading is the only explanation for how one person's mistake could become everyone's problem.

No human could have traded so fast and furiously to cause such a stupendous stock market collapse. Thankfully, humans were able to regain control and the Dow closed only 347.8 points lower.

No one really knows what happened yet, but there is lots of chatter about something going wrong in the system. Some look at the precipitous drop in Procter & Gamble shares -- the stock dropped as low as $39.37 before recovering to $60.75, a 2.3% decline.

But we also saw panic selling in General Electric , which closed 4.3% lower, Citigroup , which lost 3.4%, Bank of America , down 7.1% and Ford, which ended the day 4.5% lower. Citi shares showed massive volume of trading, followed by Bank of America, Ford and GE.

I can only hope that retail investors didn't get caught up in all the madness. The machines moved so quickly that hopefully mainly institutional investors took a hit. Perhaps that's fair, since the institutions invented the machines.

But as one reader pointed out, many retail investors may have been harmed by stop loss orders intended to protect them from declines. These automated trades -- made by machines -- sell at a preset limit and can't deal with a situation like today when stocks sink and rebound in the blink of an eye.

Think we'll be revisiting the issue of high-frequency trading now?

You bet we will.

[Monseratto]

The biggest suspect washes their hands....

Citigroup Finds ‘No Evidence’ of Erroneous Trading

May 6 (Bloomberg) -- Citigroup Inc. said it found “no evidence” that it was involved in erroneous trades after U.S. equity markets plunged today.

“We, along with the rest of the financial industry, are investigating to find the source of today’s market volatility,” bank spokesman Stephen Cohen said in a statement. “At this point, we have no evidence that Citi was involved in any erroneous transaction.”

New York Stock Exchange spokesman Rich Adamonis said “there were a number of erroneous trades” during a slide that took the Dow Jones Industrial Average down almost 1,000 points, its biggest intraday loss since 1987, before paring the decline. The Dow average ended the session down 347.8 points, or 3.2 percent, at 10,520.32 at 4 p.m.

http://www.bloomberg.com/apps/news?p...vSAmvBl8&pos=2

[tidus1203]

Looks like someone hit the "B" for billion instead of "M" for a million... Excited talaga o!

According to multiple sources, a trader entered a "b" for billion instead of an "m" for million in a trade possibly involving Procter & Gamble [PG 60.75 -1.41 (-2.27%) ], a component in the Dow. (CNBC's Jim Cramer noted suspicious price movement in P&G stock on air during the height of the market selloff. Watch.)Sources tell CNBC the erroneous trade may have been made at Citigroup [C 4.04 -0.14 (-3.35%) ].

http://www.cnbc.com/id/36999483

[tidus1203]

Nikkei 225 down 3.5% right now, S&P ASX 200 (Australian stocks) down 2.86%

[uls]

last night before midnight, you can already sense panic

Greece CDS went over 900

European interbank lending tightened (check libor)

then past midnight everyone (and every machine) went into liquidation mode

it's like everyone hit "sell" at the same time

what happens when everyone is selling and there are not enough buyers?

prices freefall

no liquidity

[uls]

check out the huge JPY move last night against the USD and EUR

[boybi]

Oil at USD76 nalang!

[Monseratto]

Oil at USD76 nalang!

Rollback...rollback!!!

[james00112233]

sana we can expect a rollback next week... wag naman sana P0.50 lang...

[malinkelly]

Rollback...rollback!!!

yeah.... been hoping for that as well.

[tidus1203]

check out the huge JPY move last night against the USD and EUR

All the charts I have seen look something like that... Merong sharp move in a short time with an accompanying strong bounce... Sarap mga bumili during the panic sell!

[uls]

there was such strong demand for JPY that the BOJ has to pump 2 trillion yen into the financial system to keep their currency from strengthening further

http://preview.bloomberg.com/news/20...this-year.html

The Bank of Japan said it would pump 2 trillion yen ($21.8 billion) into the financial system to help stabilize the market after the Greek debt crisis set off a plunge in stocks worldwide.

--

tidus, watch this video

poor dude

tama itong sinabi mo:

Kaya nga sinasabi ko nakakatakot talaga yung ganitong klaseng market... Spectator mode muna ako...

[ame="http://www.youtube.com/watch?v=xqKAPRWFKZ4"]YouTube- here we go 2.mov[/ame]

[tidus1203]

Hahahaha dami kasing trades eh. Puts here to counter his other trades (long QID I think)... May pa BIDU-BIDU indicator pa! BIDU? What the F**K? Its a very speculative stock that thing is like broncos!

Best to be simple folks, follow a trend and stay put pag walang trend STAY OUT! Basta GREED is the enemy, don't let it consume you, let's make money little by little. Cause if you try to make it ONE TIME BIG TIME maadict ka tapos later babawiin lang yan ng market sayo and then some!

Pasong paso sya ah loss $400,000 hahahaha!!!

[uls]

hehe

first time i heard of the "baidu indicator"