Well, well, well. The newswire is reporting that some trader made a typo of selling 16 Billion (with a B) worth of futures instead of $16 Million and that is what triggered the program trading that ended up causing a 10 percent drop in the DOW. The recovery was pretty fast as well. I am sure there were a few people nearing heart attack state if they were watching the market closely. Now they are saying they are going to nullify some trades that occurred between 2:40 and 3:00 pm (Eastern I assume).
From a technical analysis perspective, this is going to throw a big monkey wrench in my indicator and pattern analysis since all the charts are going to be skewed for a while. I am just liable to sit out and wait a while for this market to get its bearing. I am sure there will be a lot more skittish people out there now that are going to have a hair trigger on that sell button. Expect volatility to increase. Beyond that I don't know what else to say and how to deal with the situation. Watch and see is the mode for the day...
Too bad I didn't have an order to buy Accenture at 0.05 a share. Apparently the stock went from 42 to 0.04 cents before recovering to close around $41... :-)
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