PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Structure

[Adeptus]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

Jim Sinclair's reaction on today's market meltdown event:
http://www.kingworldnews.com/kingwor..._Sinclair.html

Jim's too much of a gold bug for my liking, but he did make a few good points in his commentary today. In particular, I buy the idea that as each currency 'round the world starts going into crisis mode, investors in those countries aren't all going directly into the USD. Increasingly, some will say enough is enough and buy gold instead of USD. Even more so if we see any more of these 'market glitches. I mean if it happens once, shame on you, if it happens twice, shame on me for sticking around and drinking CNBS kool-aid. As the global currency crisis begins to take shape here, I can see how this can be continuously bullish for gold.

[Camtender]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

Watch this short video

http://www.youtube.com/watch?v=SRNrl...layer_embedded

[bpr]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

If I wasn't a tad too close to this I'd probably not leave the house. But that's how bad it is.

I'm tempted to say that he's overstating the bear case and, as it's Brian Williams, that's enormously bullish. When guys liike this say stay at home, it's time to run naked through the neighborhood.

By the way: was a thread about this Dow drop deleted, merged, or moved? I can't find the earlier thread.

[Fiat Currency]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

By the way: was a thread about this Dow drop deleted, merged, or moved? I can't find the earlier thread.

Yes. Several posts that were there late last night have disappeared. What gives iTulip?

[Camtender]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

Yes. Several posts that were there late last night have disappeared. What gives iTulip?

Does anyone remember my "dow drops 1,000 & Gold at $1,200" post - with link to CNN story?

At least someone watched the Letterman & Brian Williams video I posted and subsequently put it as the headline video on the main page.

Gone.............................and so am I..............

[thriftyandboringinohio]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

Does anyone remember my "dow drops 1,000 & Gold at $1,200" post - with link to CNN story?

Gone.............................and so am I..............

It was a great thread. Poof!

[Munger]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

I've noticed some threads have gone missing or at least are not pushed to the top when a new comment is posted. Could be a bug ...

[thriftyandboringinohio]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

This thoughtful bit from Minyanville today:

IF -- and this is a huge if -- we're trading lethargic midday, the stage will be set for a Fugly Friday that will lead to chatter of another Black Monday. That's the thing about trust; it's tough to earn and even tougher to regain.

[Adeptus]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

Yeah whatever happened to that 'Dow 1000/Gold 1200' thread? :-( Also, the icons for posting pictures weren't working yesterday, I eventually figured out to use [IMG][/IMG] manually.

Anyway, here's the best explanation of the possible trigger to the market route yesterday that I've read so far. Mish has a post showing that the Yen rose 4 cents in one hour against the USD, 45 MINUTES before the markets totally tanked, and then also explains that two HFT companies pulled the plug (so to speak) after the first 500 point drop because they were designed to do so when things tank too fast. If the latter two are true, this just goes to show how much of the markets are real trading and how much are quant vs quant computers keeping things afloat.

http://globaleconomicanalysis.blogsp...onnection.html

[thriftyandboringinohio]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

... this just goes to show how (much) of the markets are real trading and how much are quant vs quant computers keeping things afloat....

Interesting way to look at it.

[ViC78]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

If the latter two are true, this just goes to show how of the markets are real trading and how much are quant vs quant computers keeping things afloat.

You seem to forget that they are doing God's work and we all know that god operates in mysterious ways.

[ThePythonicCow]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

Does anyone remember my "dow drops 1,000 & Gold at $1,200" post - with link to CNN story?

At least someone watched the Letterman & Brian Williams video I posted and subsequently put it as the headline video on the main page.

Gone.............................and so am I..............

Camtender (if you're still reading this) -- are you referring to the posts starting with your post Gold Decoupling - Dow down 1,000 & Gold breaks $1,200 ? It seems that your "Gold Decoupling" thread was party to a shotgun wedding with an earlier thread The Next Crash - Part I: How the First Bounce of the Debt Deflation Bear Market ends - Eric Janszen.

I'll see if I can file a "bug" report (whatever that means) with the management. This looks like a forum software glitch (or at least a site administration error.)

[thriftyandboringinohio]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

Camtender (if you're still reading this) -- are you referring to the posts starting with your post Gold Decoupling - Dow down 1,000 & Gold breaks $1,200 ? It seems that your "Gold Decoupling" thread was party to a shotgun wedding with an earlier thread The Next Crash - Part I: How the First Bounce of the Debt Deflation Bear Market ends - Eric Janszen.

I'll see if I can file a "bug" report (whatever that means) with the management. This looks like a forum software glitch (or at least a site administration error.)

That's the one I was referencing -shotgun wedding it was. When I was loking for it last evening, I used search tools for some of the distinctive words and failed to find it, also search by my posts and failed. Odd.
As always, than you Cow.

[bpr]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

are you referring to the posts starting with your post Gold Decoupling - Dow down 1,000 & Gold breaks $1,200 ? It seems that your "Gold Decoupling" thread was party to a shotgun wedding with an earlier thread The Next Crash - Part I: How the First Bounce of the Debt Deflation Bear Market ends - Eric Janszen.

I'll see if I can file a "bug" report (whatever that means) with the management. This looks like a forum software glitch (or at least a site administration error.)

Thanks, that's the one I was looking for, too. Looks like it was done by the Admin, as there are a couple of Fred posts in that discussion now.

[bpr]

Re: PLUNGE! 1987 Style - Sudden Drop in US Stocks Driven by Program Trading and a Ponzi Market Struc

You seem to forget that they are doing God's work and we all know that god operates in mysterious ways.

Worse yet, there are many different gods, and TPTB didn't think that polytheism was a problem until now:

Thursday’s Stock Free Fall May Prompt New Rules