Stock Market Crash Pit Audio As Market Goes Into Meltdown 2010

[hagmartha]

Can't say why I'm surfing flash crash today. Very few credit Ben Lichtenstein, founder of Traders Audio for this squawk. He has long experience on the trading floor but is not a pit trader.

For help with terminology, find the Traders Audio site and read the Glossary. They have a youtube channel too - check it out and you will see Ben was easier to understand during the flashcrash than during slower times.

BTW, I would love to have Ben as a neighbor - he's a bit hyper but an ethical guy.

[pokeguy808]

how do u understand and learn the lingo?

[benjiheads]

you think thats bad watch what is coming soon the black swan is about to rear it head for a far bigger move down trust me ..... al trader from london

[DrYenisun]

laughing my head off

[tradewinds77]

Yes, I have talking about the fall of American markets & the USD for over a decade This video is scary!!!

[Michigansnowpony]

Though I don't understand what this guy was saying (does "traded" mean selling or sold and "handles" are????), regardless, you sure can hear the hysteria in his voice. I'm surprised he didn't have a stroke on the spot!!

[eighteenin78]

This trader will be totally spooked when THERE ARE NO BIDS at all. Or if last trade was 1070.00 and the highest bid price is 800, or 600 or 200. When the markets are in a super panic, there are no bids at the support side of the market. If this condition persists for an hour, the markets would close, and they may not reopen. Day's limit is the maximum spread a contract can trade above or below the previous day's close. This limit amount is set by the futures exchange.

[eighteenin78]

this guy is quoting full 100 point gaps 96 even bid AT 98 even offered which means here 1096.00(Bid) AT1098.00 (Offered)... A Handle is the full prefix number before the decimal point. 1076, 1077, 1078 ... 1164. When the future is trading down 64 handles he means the index contracts are trading at say 1099 from the previous day's close which were 1163.00.

[Michigansnowpony]

@eighteenin78 - Thank you for taking the time to try to explain

this stuff for us "simple folk".  It's all Greek to me (no pun intended).

And I was eighteen in 80. : )

[eighteenin78]

Continued) Normally, index futures are bid E.g. 1165.20 and the offered quote is usually a couple of cents higher E.g. Offered at 1165.22 Orderly trading occurs when the bid and offer is within a few "cents" above the bid price. But in panic sells, (or panic short covering buys) the market can become seriously non liquid, when the gap between bid and asked expands to 20 or 40 basis points. In this case...

[eighteenin78]

I think this is a futures contract on the S&P 500 index - probably the most liquid which would be either the May10 or June10 contract.. The S&P 500 index stood at 1163 at the start of trading on May 6th. It fell throughout the day to about 1140 by 2pm EDT. This would have been the ten minutes from 2:40pm to 2:50pm when the S&P 500 index plunged to 1065, and then recouperated to end the day at about 1123. Cont'd..

[arturonazareno]

Lets PRAY for USA Economics

[SpikeNRoxi]

i don't really understand this stuff... does this mean a lot of people lost a lot of money and won't get it back?

[ronskilbeck]

They bailed out the Euro today and guaranteed Greece to the tune of a trillion dollars - the market (Dow) went up by over $400. Are people nuts??!!! How could this have been good news? Fixing a debt problem by going farther in Debt??? What do you think it means?

[aoxomoxoadead]

Does anyone know what a handle is?

[eighteenin78]

@aoxomoxoadead A Handle - explained in my posting today

[JustAnotherPleb]

Is this the new version of 'Ten green bottles'?

[gezza65]

Shouldn't you credit the original source of the audio rather than passing this off as your own?

Tyler Durden at Zero Hedge posted this audio on 7 May 2010..

[imcontraire]

I would like your opinion. I have a 401k with up matching funds (100%) up to a 5% contribution at work. I'm in gold/silver mining mutual funds and stocks, and an oil mutual fund. When this happened I lost approx. 3% in one day. Is it better to just take out a loan and invest in hard assets--silver eagles gold coins and stash it someplace so I have possession, or continue investing in the market as is? Thanks,

[PlatinumGordon]

@imcontraire I want to know the answer to this question also. :-)

[Danster82]

The sound of a leech

[Puzzoozoo]

This is what a stockmarket crash when TSHTF will sound like but x10 worse. Scary stuff.

[germans1]

Thanks for this myspace. People think I am stupid for having a 2 year food storage. I know that is worse case scenario but let they think I am mad whats the worst that can happen. I dont use it and I truly hope I never need to.

Vinny

[myspacesecrets]

@germans1 preparation is great. Prepare for the worst, expect the best...

its a win win situation.

[eliasmouawad]

Search For

"CIA NEW FIASCO"

[Ubreako]

I would imagine alot of people who trade with leverage would have been wiped out ??

[binky4647]

so which horse race was that one.

[shaurz]

These traders are strange creatures...

[GuildF40]

sounds like he is PEAKING at 1:51 but man at 5:40he sounds like Devil has him lol

Listen hard for the back ground yelling lol

[jamesandhoa]

It would be nice to have some one translation ?

[eighteenin78]

@jamesandhoa I have given a quick lesson today in the language of futures trading.

[myspacesecrets]

I was laughed at back in 2001.....tis amazing, what I have been talking about and writing about for many years is just getting started. Wow!

I felt chills down my spine as I listened to this the first time. Hard to explain, but I guess you know what I mean.

[KnowledgeDriven]

@myspacesecrets so, what i got from this is mrkt was tanking, pit then saw Morgan Stanley desk try to dump huge, which they did, which at the time helped the market crater. Then, during the cratoring, there's no bids at all and then some stop catalyst i'm unsure of happened and finally the pit saw JPM desk hit the buy trying to put out the anchor with bids 10 handles higher than offer.

[KnowledgeDriven]

@KnowledgeDriven And in this day and age, that in itself is enough for everyone else to hit the bid, crowd out JPM and buy back the entire fall. It seems financial terrorism is structurally apart of the system.

[KnowledgeDriven]

@KnowledgeDriven it's hard to tell though... i time stamp for the start of audio would help so i could follow along with recorded crash, either endlessmountain or donharrold.

[LMIMSsoi]

It's day's like the 6th, is why the PPT exists. If not - we could of had a real meltdown. And as much as people say they want to see it. If it where to happen,  they would wish it didn't. That being said, this mess is just getting started. If we can get through the next 2 weeks we may be okay.

[personkid20]

I didn't have ta's feed that day(monitoring other trading desks that day and it was nuts!

[personkid20]

always fun listening to ben(I believe it's him), is it?

[onewingedsky]

sounds like hes loosing his voice.

[Airave]

Ya kinda wish you coulda been there, lol!

Meltdown Blues: Head-banger style.

[MegF142857]

Sounds like an auctioneer doing bidding in reverse.

[gauharjk]

I can't understand a thing...???

[Gollywog]

@gauharjk watch a chart of the S&P500 to understand what he's talking about.. Watch the chart during the collapse

[meikagirl]

All of us will be screaming like this when the real SHTF.

[HomesteadAcres]

I dont know that much about the actual traiding but at 138-145 I can tell that its not good! Thanks for posting this !

[AndyMH182]

What was he trading?

[aceyorba]

never go into a BIG room with a Tiny Door...

[tinsnanna]

did he jump?

[JP5466]

One day the market will truly explode (without a PPT rescue) and these casino operators will play their last hand. I cannot wait for that day.

Criminals like this all deserve to be in jail.

[Tigerpaws9097826]

@JP5466 If you know of any evidence that it was the PPT that caused the market averages to pop back up, I'd appreciate hearing it. I have my suspicions that this could be what happened, but haven't yet heard anyone point to some sort of audit trail that left any clues.

[JP5466]

@Tigerpaws9097826 The PPT may no longer be needed because the entire financial and stock market is rigged. Everyone know about it, including the porn junkies at the SEC. Goldman Sachs and the FED are running Washington and the market. We will probably never know what really happened. The idea that some fat fingered rogue trader caused the -1000 point drop is absolutely preposterous.

Something very bad is on the horizon... better get ready for it.

[Tigerpaws9097826]

@JP5466 Thanks for your response; what you've said makes as much sense as anythiing I've come across. I agree with you that something bad is on the horizon, but am not certain whether it will be high inflation as the money-printing machine keeps working faster, or a huge crash because no amount of money printing can outrace an impending collapse in value of the worthless assets (derivatives & bad debt, mainly) now bolstering so many balance sheets.  What do you think?

[peapod61]

@JP5466,

what are you talking about? the guy is a pit trader. don't be so ignorant.

[JuriDee]

Trading stocks: serious business.

[myspacesecrets]

you didnt see the end of this when he bust the veins in his head...POP :P

[fal2grace]

that's pretty wild...thanks myspace..have a nice saturday.

[yogiudo]

crazy

[skazhiprivet]

I´m glad I don´t have this guy as neighbor...

[eighteenin78]

@skazhiprivet This guy doesn't have a voice left by the time he gets home.