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Big moves (i, ii, iii, iv) in a number of markets just after Bernanke's testimony was released...

Big moves (i, ii, iii, iv) in a number of markets just after Bernanke's testimony was released this morning may have been spurred by an unusually large sell order hitting the Treasury market which then caused algorithms from precious metals, to currencies, to stocks to fly into action, sending all the markets reeling. It may have been a fat-finger, but one trader suspects it was "a very big asset allocation."
Comments (9)
  • whatever, i am just increasing my physical silver position immensely this morning. don't believe the hype.. too much liquidity floating around out there.
    29 Feb 2012, 12:31 PM Reply Like
  • I think that's an intelligent way to react to Bernanke's comments and economic and monetary actions. Do you purchase silver futures or the physical metal?
    1 Mar 2012, 06:51 PM Reply Like
  • Ditto
    29 Feb 2012, 12:35 PM Reply Like
  • yes the big drop in pM´s was man made...not because all of sudden our debt dropped 15% or something......it was a computer run...nothing fundimental...
    29 Feb 2012, 12:37 PM Reply Like
  • It's difficult to set stops with this kinda crap going on. X dollars to sell it, X dollars to buy it back and then there is the loss due the difference in selling price and the rebounding repurchase price.
    29 Feb 2012, 01:33 PM Reply Like
  • normally i never trade without stops. but i am purchasing actual physical and having it delivered. im looking towards 2014-2015 for some REAL appreciation
    29 Feb 2012, 01:51 PM Reply Like
  • Though you cant go wrong purchasing physical gold, there may be more economically efficient ways to benefit from rising gold prices in the long-term. Futures on a commodity exchange or the use of options (with the assistance of a professional) could provide greater returns with similar risk. Only, reason I would shy away from physical bullion is the liquidity and dealer spreads you'll have to contend with. Gold bars will not be as easy to buy or sell as contracts on an exchange, further the dealer spread for physical bullion will likely be greater than the bid/ask spread on the futures exchange. Either way the purchase of gold in US Dollars will probably see profitability in the current economic environment.
    1 Mar 2012, 06:58 PM Reply Like
  • Am just an investor trying to stay one step ahead of the big boys and their pre- programmed computers throwing havoc into the market place. These programs totally mess up the average investors portfolio as well as Mutual funds and the likes!. I too have been badly burned when a reasonable stop sell is kicked out by a one second dramatic drop and a second later moves the stock back up to where it had previously been. It sucks.
    Talk about 'needing laws to regulated these absurd wild, wild west
    electronic swings.It can't happen soon enough.
    1 Mar 2012, 04:03 AM Reply Like
  • the spreads are ridiculous i won't lie about that. im really not looking for liquidity in that market.. im a disciple of kyle bass.
    5 Mar 2012, 09:10 AM Reply Like
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