First a fact of trivia:
Each day of the week has a name in the trader vocabulary. For example there is voodoo Wednesday, and there is turn-around Tuesday and so forth. But did you know that the last 14 Tuesdays in the Dow has been positive and those 14 Tuesdays have account for 70% of the rally this year. With yesterdays rally it is now 15 Tuesday’s in a row that the market has rallied. They should name it Terrific Tuesday (thank you Art Cashin for this).
But it wasn’t without its set-backs, hence the title “how to make $200 billion disappear”. All was well, when at around 18:05 London time the Dow fell 140 points in one minute. Oil plunged. The dollar spiked.
It turns out that someone has phished the password of Associated Press Twitter feed. So computers were selling, as they are told, and humans were buying and cancelling orders, because it was a fake. Hence $200 billion disappeared in valuations, and reappeared moments later. I was out and neither lost nor gained.
Not everyone was so lucky. A guy in my trading room lost 10% on his account because of the spike due to option positions. I wonder if the spread betting companies will hold him good. I doubt it, but there is no chance they would have been filled themselves.
Post a comment if you had a lucky escape or perhaps a tale to tell