Friday, May 7, 2010

Not Greece crisis reaction............

The sudden drop in Dow is attributed to some erroneous typing error from a trader.....otherwise I remember, even when the mortgage crisis keep coming in for huge losses there was never a drop of 1000 points in DOW....! Terrific......see what a trader can do to the make all type of errors and land the whole market in a sorry state.
So, definately that was not the reaction of Greece Financial debacle.......
Our market also should drop , maybe hugely in the morning but should recover lateron at the end of the day....I can't say , our market will be in green but , I think the fall should be arrested.......and we should not see a cliffhanger fall......Let us hope for the best......


NEW YORK (AP) -- A computerized selloff possibly caused by a simple typographical error triggered one of the most turbulent days in Wall Street history Thursday and sent the Dow Jones industrials to a loss of almost 1,000 points, nearly a tenth of their value, in less than half an hour. It was the biggest drop ever during a trading day.

The Dow recovered two-thirds of the loss before the closing bell, but that was still the biggest point loss since February of last year. The lightning-fast plummet temporarily knocked normally stable stocks such as Procter & Gamble to a tiny fraction of their former value and sent chills down investors' spines.
"Today ... caused me to fall out of my chair at one point. It felt like we lost control," said Jack Ablin, chief investment officer at Harris Private Bank in Chicago.
No one was sure what happened, other than automated orders were activated by erroneous trades. One possibilility being investigated was that a trader accidentally placed an order to sell $16 billion, instead of $16 million, worth of futures, and that was enough to trigger sell orders across the market.
No one was taking blame, either. The New York Stock Exchange said there was no problem with the Big Board's systems, and all the markets were on a conference call with the Securities and Exchange Commission.
Nasdaq issued a statement two hours after the market closed saying it was canceling trades that were executed between 2:40 p.m. and 3 p.m. that it called clearly erroneous. It did not, however, mention a cause of the plunge.
The NYSE also said it would cancel some trades on its electronic platform.
There were reports that the sudden drop was caused by a trader who mistyped an order to sell a large block of stock. The drop in that stock's price was enough to trigger "sell" orders across the market.


  1. Dear Rajeev,

    thanks for the article. It gives us confidence not to panic, Though logically we all know that india market is intact but it is difficult to keep your emotions in control. Your article will help a lot of small investors not to take wrong decisions.
    Also it is glad to see you back.
    thanks you

  2. Thanks Rajeev for this information. This is enough for indian short sellers to cheer :)

  3. Dear Rajeevji
    do you follow vas infra and paper product.

  4. To be frank..
    I would take this as a chance to buy!!

  5. Uno
    IF you dare,it is your destiny.....After 2 weeks, another one thinks same way.
    Fortune determine to whom consider and choose.
    Best of luck.Because if u r chosen then we can
    also get out of this trap as early than expected.

  6. Hi Rajeev,
    Can u pls let me know ur views, which is better stock, Orient ceramics or Decolight ceramics ?

  7. share,
    I do not track Orient Cera..