Interesting how CNBC keeps saying this was a market glitch. If you ask me this looks like an old trading technique where a big player dumps a large position to force stops to kick in, and then buys the stock back at a much lower price. Normally this is done on individual stocks, for smaller 1-2 point swings.
Think about this, if you knew the dow was going to go down 750-1000 how much money could you have made. you short the futures, and put cover limits very low, you then line up individual stocks and do the same. next you "fat finger" a basket of sales including P&G, accenture and a few futures, and poof. The market drops 1000 points, you cover all of your shorts and go long at the bottom. In the futures market you just made 10x your money in 35 minutes, and you now have huge positions build in stable dividend paying stocks.
Now does anyone really think this was an accident vs. a very calculated plan by a trader with access to alot of capital?
The worst part of this is it looks like another big player got slammed in this, but they were able to convince the NYSE & Nasdaq to cancel the trades. Imagine if you took cramer's famous call and bought P&G at 49, then sold at 55, you are now short P&G at 55 because they canceled your buy...
"aapl, bidu, goog out performed warren,,,,,and the google boys became billionaires without a silverspoon or the sec covering their back like warren had."
Anyone can pick a winner in hindsight. Those same issues carry big downside risk too. Buffet sells when he thinks he can do better with his capital elsewhere. The guy has a legion of analysts looking at opportunities everyday. Of course he can find something better, but did he sell his entire stake? No, because the stock still carries a very good return over the long term with very little risk. It's a good holding in a diversified portfolio.
aapl, bidu, goog out performed warren,,,,,and the google boys became billionaires without a silverspoon or the sec covering their back like warren had.
buffy sold PG for a reason,,,cnbc reporters have that shocked look same as they did when their ge stock took a dive. (buffy owns the pump and dump media labels)