Oct 4, 2008

Is it a coincidence or someone is playing with us

Four cases are relevant.
1) Googles's dissemination of old United Airlines news resulting in a precipitous UAL stock slide,
2) Google stocks appeared to fall off a cliff during the final few minutes of trading last week(Silicon Alley Insider has a minute-by-minute breakdown), plummeting from more than $400 per share to around $200. Luckily, it turns out Nasdaq is declaring a “do-over,” canceling all trades above $425.28 or below $400.53. Nasdaq blamed the drop on “erroneous orders” that were “triggered by orders routed from another exchange.” So it has reset Google’s closing price at $400.52, up more than 5 percent from the day’s open.
3) Other news follows Google-related stock gaffe, during which Google Finance’s data was incorrect for more than 12 hours.
4) Apple stock briefly took a dive Friday after a CNN iReport post appeared saying Steve Jobs had had a major heart attack. Apple said the story was false. Stock prices fell as much as 5.4 percent before rebounding, according to Bloomberg. UPDATE: Here's CNN's official statement. CNN says it removed the story because the community brought the story to its attention. Importantly, CNN also refers to the content as "fraudulent," which is much stronger than "inaccurate." The SEC has already launched an investigation.
What happened?
In all cases: systems unchecked by human beings made a mistake resulting in massive damage to an already fragile market.
What else can we expect????????????
But the episodes aptly illustrates how jumpy the markets are and how easily they could be manipulated.

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