Woah, the Dow:

Megan McArdle considers a number of possibilities.   To be honest, none feel good, in the sense of ‘I’d like to be Chancellor dealing with THAT’ good.

Meantime, over here, 5 minutes before the exit polls, our own markets in whether there will be a Hung Parliament goes a bit loopy for a minute:

Perhaps the answer is the same in each case – too much volume hitting a rather sensitive market at a rather special time? But in the case of the Dow, I would argue that such movements cannot help but produce/reflect a fundamental lack of confidence.  If Betfair made markets on the continued appliation of QE, I’d pile in.

Whereas by the time you read this, the Betfair Hung Parliament market will be going nuts again on the exit polls … can’t bear the tension ….

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3 thoughts on “Unexplained wobbles

  1. Hearing from a couple of Hedge Fund friends that someone in NYC had a massive fat finger blunder in P&G, which then ran through all the stop losses. That sent the market from a big fall into the death spiral….but error was spotted and market has recovered to where it roughly should have been.

    1. I remember that happening to DAX futures about 8 years ago. Instead of size at level he put in level at size ….

  2. Yeah I hear it is something along those lines – actually hearing there were a couple of concurrent SNAFUs. I’ll update tomorrow when I know more but zerohedge might have some interesting updates about it as well.

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