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[Stock Market Crash] Wall Street Capitulation Largest Drop Since 1987 Dow Jones Down 1,000 Intraday

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Uploaded by on May 6, 2010

[Stock Market Crash] http://www.stockmarketfunding.com Wall Street Capitulation Largest Drop Since 1987 Dow Jones Down 1,000 Intraday. [Stock Market Crash] Watch how stocks get washed out AAPL, GOOG, RIMM, CME, PCLN, FSLR, ISRG, MA, GS and more with huge intraday drops ans bounces.

Stock Market Crash: Wall Street Capitulation Largest Drop Since 1987 Dow Jones Down 1,000 Intraday. [Stock Market Crash] Watch how stocks get washed out AAPL, GOOG, RIMM, CME, PCLN, FSLR, ISRG, MA, GS and more with huge intraday drops ans bounces. [Economic Collapse] [Economic Collapse] Biggest Drop in the History of the Dow Jones Industrial Average [Stock Market Crash]

The May 6, 2010 Flash Crash also known as The Crash of 2:45, the 2010 Flash Crash or just simply, the Flash Crash, was a United States stock market crash on May 6, 2010 in which the Dow Jones Industrial Average plunged about 900 points—or about nine percent—only to recover those losses within minutes. It was the second largest point swing, 1,010.14 points, and the biggest one-day point decline, 998.5 points, on an intraday basis in Dow Jones Industrial Average history.

On May 6, US stock markets opened down and trended down most of the day on worries about the debt crisis in Greece. At 2:42 pm, with the Dow Jones down more than 300 points for the day, the equity market began to fall rapidly, dropping more than 600 points in 5 minutes for an almost 1000 point loss on the day by 2:47 pm. Twenty minutes later, by 3:07 pm, the market had regained most of the 600 point drop.

After almost five months of investigations, the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint report dated September 30, 2010 and titled "Findings Regarding the Market Events of May 6, 2010" identifying the sequence of events leading to the Flash Crash.

The joint report "portrayed a market so fragmented and fragile that a single large trade could send stocks into a sudden spiral,"[8] and detailed how a large mutual fund firm selling an unusually large number of E-Mini S&P 500 contracts first exhausted available buyers, and then how high-frequency traders (HFT) started aggressively selling, accelerating the effect of the mutual fund's selling and contributing to the sharp price declines that day.

The SEC and CFTC joint report itself says that "May 6 started as an unusually turbulent day for the markets" and that by the early afternoon "broadly negative market sentiment was already affecting an increase in the price volatility of some individual securities." At 2:32PM (EDT), against a "backdrop of unusually high volatility and thinning liquidity" that day, "a large fundamental trader (a mutual fund complex) initiated a sell program to sell a total of 75,000 E-Mini contracts (valued at approximately $4.1 billion) as a hedge to an existing equity position." The report says that this was an unusually large position and that the computer algorithm the trader used to trade the position was set to "target an execution rate set to 9% of the trading volume calculated over the previous minute, but without regard to price or time."

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Uploader Comments (StockMarketFunding)

  • Man, That's sure one day I wont forget. What a ride!

  • @smfstreet we had a blast and that really rattled a lot of cages

  • Calm down! It's only going to get worse.

  • @virtualwebman they get worse yet markets go higher lol

  • Al Pacino? trading?

  • @banjop84 haha, we get that a lot :-)

Top Comments

  • WOW we have been waiting for A big move down since the

    middle April when Mario called the top, but I did not

    expect this Slater!!

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All Comments (15)

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  • @eatfish97 thanks for watching!

  • @OptionsSchool looks like they're trying to set us up for another one

  • @OptionsSchool Yes, by now, we have had a bunch of issues take place since that I made that comment. A very troubled world we live in, where such mistakes can cause devistating effects nationwide, even world wide! Hell, even the BP oil spill was said to have been caused by the rig control operator "leaning" a little to hard on the lever that makes the pipe go up and down, while the bops and anular were closed, ripping apart the seals.

  • @kingx989 you should know by now it wasn't a "FAT FINGER" or "Computer Glitch" the average investor just can't comprehend the fact that bids can go to $0.01 without some scape goat to blame it on. The system failed us, they felt bad and knew it was wrong to not break the trades...so they did. Remember these are "Self Regulating Organizations" SRO's public backlash can be a bitch.

  • @banjop84 lol

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