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Getbig Main Boards => Politics and Political Issues Board => Topic started by: SAMSON123 on May 06, 2010, 03:20:40 PM
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But everything is getting better in america...Just keep saying that while you click your heels three times
(http://l.yimg.com/a/i/ww/news/2010/05/06/stocks-dive2.jpg)
Stocks plunge, Dow has record drop, then recovers on concerns about Greek debt problems
ap
(http://l.yimg.com/hv/api/res/1.2/5KQaZhL98pX6rpyug6ZpPg--/YXBwaWQ9eWZpbmFuY2U7aD0yNDc7dz0yNDA-/http://l.yimg.com/a/p/fi/29/90/91.jpg)
Traders work on the floor of the New York Stock Exchange, Thursday, May 6, 2010, in New York. It was a painful flashback to the darkest days of 2008: Stocks plunged and the Dow Jones industrials skidded by hundreds of points as traders succumbed to fears that Greece's debt problems would halt the global economic recovery.(AP Photo/Henny Ray Abrams)
Traders work on the floor of the New York Stock Exchange, Thursday, May 6, 2010, in New York. It was a painful flashback to the darkest days of 2008: Stocks plunged and the Dow Jones industrials skidded by hundreds of points as traders succumbed to fears that Greece's debt problems would halt the global economic recovery.(AP Photo/Henny Ray Abrams)
Tim Paradis, AP Business Writer, On Thursday May 6, 2010, 5:40 pm
NEW YORK (AP) -- The stock market had one of its most turbulent days in history as the Dow Jones industrials dropped almost 1,000 points in less than half an hour on fears that Greece's debt problems could halt the global economic recovery.
The market's plunge came less than 90 minutes before the end of trading. The Dow's drop was its largest loss ever during the course of a trading day, but it recovered to a loss of 347 at the close. All the major indexes lost more than 3 percent.
There were reports that the sudden drop was caused by a trader who mistyped an order to sell a large block of stock. The drop in that stock's price was enough to trigger "sell" orders across the market.
Still, the Dow was already down more than 200 points as traders watched protests in the streets of Athens on TV. Protestors raged against austerity measures passed by the Greek parliament. But traders were not comforted by the fact that Greece seemed to be working towards a resolution of its debt problems. Instead, they focused on the possibility that other European countries would also run into trouble, and that the damage to their economies could spread to the U.S.
The Dow has lost 631 points, or 5.7 percent, in three days amid worries about Greece. That is its largest three-day percentage drop since March 2009, when the stock market was nearing its bottom following the financial crisis.
"The market is now realizing that Greece is going to go through a depression over the next couple of years," said Peter Boockvar, equity strategist at Miller Tabak. "Europe is a major trading partner of ours, and this threatens the entire global growth story."
The stock market has had periodic bouts of anxiety about the European economies during the past few months. They have intensified over the past week even as Greece appeared to be moving closer to getting a bailout package from some of its neighbors.
Computer trading intensified the losses as programs designed to sell stocks at a specified level kicked in. Traders use those programs to try to limit their losses when the market is falling. And the selling only led to more selling as prices fell.
The selling was furious:
At 2:20 p.m. EDT, the Dow was at 10,460, a loss of 400 points.
It then tumbled 600 points in seven minutes to its low of the day of 9,869, a drop of 9.2 percent.
By 3:09 p.m., the Dow had regained 700 points. It then fluctuated sharply until the close.
"I think the machines just took over. There's not a lot of human interaction," said Charlie Smith, chief investment officer at Fort Pitt Capital Group. "We've known that automated trading can run away from you, and I think that's what we saw happen today."
On the floor of the New York Stock Exchange, stone-faced traders huddled around electronic boards and televisions, silently watching and waiting. Traders' screens were flashing numbers non-stop, with losses shown in solid blocks of red numbers.
Jack Ablin, chief investment officer at Harris Private Bank in Chicago, said the selling brought back memories of the 1987 crash.
"I've been watching the markets since 1982 and, believe me, I froze at the screen in '87," Ablin said. "But today ... caused me to fall out of my chair at one point. It felt like we lost control."
The impact on some stocks was enormous although brief. Stock in the consulting firm Accenture fell to 4 cents after closing at $42.17 on Wednesday. It closed at $41.09, down just over $1.
NYSE spokesman Raymond Pellecchia said the plunge wasn't caused by a problem with the exchange's trading systems. The Nasdaq Stock Market said it was reviewing its trades with other trading networks.
NYSE chief operating officer Larry Leibowitz said all the major stock exchanges were holding a conference call with the Securities and Exchange Commission to discuss what happened. It was not immediately known if there would be a statement issued after the call to explain the day's events.
The Dow fell 998.50 points in its largest point drop ever, eclipsing the 780.87 it lost during the course of trading on Oct. 15, 2008, during the height of the financial crisis. The Dow closed that day down 733.08, the biggest closing loss it has ever suffered.
The Dow recovered two-thirds of its loss Thursday. It closed down 347.80, or 3.2 percent, at 10,520. That was its biggest point loss since February 2009.
The Standard & Poor's 500 index, the index most closely watched by market pros, fell 37.75, or 3.2 percent, to 1,128.15. The Nasdaq composite index lost 82.65, or 3.4 percent, and closed at 2,319.64.
At the market's lows, all three indexes were showing losses for the year. The Dow now shows a gain of 0.9 percent for 2010, while the S&P is up 1.2 percent and the Nasdaq is up 2.2 percent.
At the close, losses were so widespread that just 173 stocks rose on the NYSE, compared to 3,008 that fell. The major indexes were all down more than 3 percent.
Meanwhile, interest rates on Treasurys soared as traders sought the safety of U.S. government debt. The yield on the benchmark 10-year note, which moves opposite its price, fell to 3.4 percent from late Wednesday's 3.54 percent.
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And everyone calls me a doom and gloomer.
I understand reality.
We spent trillions of dollars on fraudulent bailouts and have nothing to show for it.
This mess is going to come to the usa and there is nothing to prevent it.
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I'm done. :'(
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Its simple math. This is not complicated at all and I have stated my case time and time again.
We are screwed royally for at least 20 years.
You guys want to believe in fairy tales, obama, hope and change, fine delude yourselves from the truth.
The federal govt state govts and city govts have made too many promises to too many people that can't be met.
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agreed 33.
and props for not just doing what the rush-heads are doing, just blaming obama. Nobody credited obama when it rose from 7k to 11k... so when it drops to 10k because of some shit in Greece that Obama can't control, I would hope he couldn't get the blame.
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agreed 33.
and props for not just doing what the rush-heads are doing, just blaming obama. Nobody credited obama when it rose from 7k to 11k... so when it drops to 10k because of some shit in Greece that Obama can't control, I would hope he couldn't get the blame.
Except for you ;D
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agreed 33.
and props for not just doing what the rush-heads are doing, just blaming obama. Nobody credited obama when it rose from 7k to 11k... so when it drops to 10k because of some shit in Greece that Obama can't control, I would hope he couldn't get the blame.
Absolutely right
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Obama is not the problem. His ideology, those who vote for his ideology, and those clinging to delusions that evertying will be ok are the problem.
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I credited bush for the thing hitting 14k, that's for sure.
presidents are cheerleaders. the market is based upon confidence. The more they sell (real or imaginary), the higher the market goes.
Today was just greece tanking... shit happens that we cannot control
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"Obama is not the problem. His ideology, those who vote for his ideology, and those clinging to delusions that evertying will be ok are the problem. "
IMO, the problem is that some people think our presidents are any different based upon party.
What is his "ideology"? Cause it's pretty damn simliar to Dubya's. They're all the same dude.
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"Obama is not the problem. His ideology, those who vote for his ideology, and those clinging to delusions that evertying will be ok are the problem. "
IMO, the problem is that some people think our presidents are any different based upon party.
What is his "ideology"? Cause it's pretty damn simliar to Dubya's. They're all the same dude.
I am just not convinced that the president's ideology really matters. They are puppets and don't really make the decisions behind closed doors.
For example Obama in his campaign promised to end the war in Iraq and Afghanistan and then not even 6 months into his presidency started increasing troops in Afghanistan. And look where are they now? Definately not the result of a president that really makes decisions.
(http://media.mcclatchydc.com/smedia/2009/09/08/18/20090905_USAFGHAN_TROOPS.large.prod_affiliate.91.jpg)
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there was a huge computer glitch that triggered this massive sell off..(still trying to find out what happened)
Well this helped me purchase a stock i really like for a big discount....
Accenture stock went from 40 dollars to 1 cent on the day...
Many trades will be void...
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Accenture plc. Class A Ordinary(NYSE: ACN)
After Hours: 40.95 -0.14 (-0.35%) 6:22PM EDT
Last Trade: 41.09
Trade Time: 4:00PM EDT
Change: 1.08 (2.56%)
Prev Close: 42.17
Open: 41.78
Bid: N/A
Ask: N/A
1y Target Est: 47.55
Day's Range: 0.04 - 42.30
52wk Range: 0.04 - 44.67
Volume: 10,311,725
Avg Vol (3m): 3,965,610
Market Cap: 26.17B
P/E (ttm): 17.58
EPS (ttm): 2.34
Div & Yield: 0.75 (1.70%)
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Obama is not the problem. His ideology, those who vote for his ideology, and those clinging to delusions that evertying will be ok are the problem.
People voted for change and the end to foreign wars in Iraq and Afghanistan and cleansing the system from the scum on Wall Street. Little did they know that they were voting for a puppet. You know he is a puppet. People are still not realizing that the President of US is a ceremonial position but that he is not the real decision maker.
Until people realize that politicans are puppets they only have themselves to blame. Like Jesse Ventura says there should be an entry on the ballet: No Vote. A vote of no confidence.
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this weeks sell off is just profit taking.Stuff has run up to much in the last couple weeks etc..
Healthy profit taking...
However, this just goes to show the vulnerability of the markets where one erroneous trade can cause a massive sell-off like this..
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Nasdaq cancels all trades 60% away from last print at 2.40 PM.....
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Procter & Gamble Company (The) (NYSE: PG)
After Hours: 60.60 -0.15 (-0.25%) 7:17PM EDT
Last Trade: 60.75
Trade Time: 4:00PM EDT
Change: 1.41 (2.27%)
Prev Close: 62.16
Open: 61.91
Day's Range: 39.37 - 62.67
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Now NYSE cancels all trades executed between 2.40 and 3.00PM
That sucks..
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Bloomberg radio just said citi confirmed there there was no error in its trading.
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Bloomberg radio just said citi confirmed there there was no error in its trading.
I think it may have been some High Frequency trading program.
None the less will soon figure it out soon..I'm watching cnbc...
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I agree with Tito - this was not a sell off - it's something else.
I got out of my longs on April 16th and have been waiting for an opportunity to get back in - I was thinking we'd pull back maybe to 10,300 on the DOW over a week or two.
What we see here is not a bunch of traders getting into a selling panic - it's a bunch of computers getting into a selling panic.
Arbitrage programs will trade off any differences between the S&P 500 futures and the S&P 500 cash. They are one potential suspect. Then there are more regular buy/sell programs just looking to ride market fluctiuations and then of couse there are those 'front running' HFT algorithms which are nothing more than people like Goldman taxing every transaction on the market.
There are supposed to be circuit breakers in place when drops like this happen, I'm not sure why they didn't trigger - for sure, Accenture should not have been able to move down to 1c but if it all happened to quickly, it's understandable. If you look at the chart for Accenture yesterday - it looks like this:
Each of the green vertical bars represents 1 minute of price action. The red vertical bars represent the volume traded in that 1 minute.
(http://i39.photobucket.com/albums/e156/tb9pdvs/06-05-2010ACN.jpg)
Here's the odd thing - you can see the huge move down just after 14:45 EST. What you don't see along with that move is a significant spike in volume. How could price move down so much without an increase in volume ? The only way I can imagine this happening is if there were absolutely no buyers at all - all of that volume would have been on the sell side only. This makes no sense at all.
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It was the Fed sending a warning that it wont be audited, or else....
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I agree with Tito - this was not a sell off - it's something else.
I got out of my longs on April 16th and have been waiting for an opportunity to get back in - I was thinking we'd pull back maybe to 10,300 on the DOW over a week or two.
I'm guilty of this as well. I have been liquidating all my longs positions since the beginning of last week. I sold my last long position on Monday...I'm have a few Leap (puts) on some stocks that i feel are overvalued. I have been taking profits..
However, something had to have happened....
Apple computer is looking like a strong candidate to buy some put options on...That sucker is pure "beta"...
Yes, these days 70%+ of the volume on the exchanges is computer to computer. You have tons of algorithms ready to trade should a certain condition occur..In example a particular algorithm may sell all its tech stocks should the NASDAQ break 2100 or some other Support level, etc.
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The Aussie market is down close to 3% and Japan is getting slammed.
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Some are speculating a huge hedge fund going under, it counter parties officially pulling the plug on it.
Market manipulation by the Rothscholds, NWO...perhaps.. ;D
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Hi Frequency traders are getting the blame right now on cnbc.
Goldman has a very successful high frequency trading program.
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one of them typed a B for billion, instead of M for million.
crazy a little error like that could cost investors wordlwide thousands of dollars each
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one of them typed a B for billion, instead of M for million.
crazy a little error like that could cost investors wordlwide thousands of dollars each
Not possible I'm afraid.
You don't enter your trade quantities like that. Traders don't go to their trading platforms and type in "three hundred and fifty contracts" ::)
Total qty on the e-mini S&P futures contract was 5.6 million. The day before it was 3 million. It sure isn't billions.
Here's a more likely explanation - http://www.zerohedge.com/article/day-market-almost-died-courtesy-high-frequency-trading
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Not possible I'm afraid.
You don't enter your trade quantities like that. Traders don't go to their trading platforms and type in "three hundred and fifty contracts" ::)
Total qty on the e-mini S&P futures contract was 5.6 million. The day before it was 3 million. It sure isn't billions.
Here's a more likely explanation - http://www.zerohedge.com/article/day-market-almost-died-courtesy-high-frequency-trading
What i think he's saying that the trader typed an extra few digits..
In example 1,000,000,000 as opposed to 1,000,000
The trader didn't buy Stock index futures that is for sure..
Yes the problem was caused by these black box, algorithm trading systems...
I foresee a congressional interview on this event.Where the heads of these HFT firms, such as GETCO, Goldman, and market makers such as Citadel, and knight.
Something needs to be done about this problem. Sure these HFT programs add liquidity. However, these trades don't add any economic value.
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What i think he's saying that the trader typed an extra few digits..
Nope - CNBC specifically said he typed a "B" instead of an "M" - such is the dumbed down nature of that channel
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This is an email from the firm i trade Forex, stocks , futures, sock options with..They sent me this email..
Due to heightened volatility and market conditions that occurred earlier today, All equity exchanges have issued an Industry-wide Clearly Erroneous Ruling Policy Established for 05/06/10. An industry-wide decision to address potentially erroneous pricing from today's trading has been initiated.
Please Note that:
-The specific time frame addresses trade executions between 2:40 p.m. ET and 3:00 p.m. ET
-The reference price is the consolidated last sale at or before 2:40 p.m ET
-Trades executed with a price deviation of greater than and less than 60 percent from the reference price will be busted.
-This decision may not be appealed
Additionally, your account trades and balances may be affected as a result. More information will be made available to firms tomorrow with regard to trade executions. We will be modifying account positions and balances as the exchanges relay that information to us. These updates will most likely occur through the trading day on Friday 5/7/2010.
Should you believe that the your executions, that occurred on 5/6/2010, falls in the above categories, please contact the trade desk tomorrow morning before trading out of any erroneous positions as a result of the Clearly Erroneous Ruling Policy.
Updates will follow as soon, via your software as well as emails and notices, as they are made available from Exchanges and we will promptly communicate with you as soon as possible.
Thank you for your attention to this matter.
Regards,
MB Trading
MB Trading: FINRA/SIPC Member
MB Trading Futures, Inc.: NFA Member
1926 E. Maple Avenue
El Segundo, CA. 90245
www.mbtrading.com
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by tyler durdan from zero hedge
HFT Market Making May Lead to a Crash
Rambus (RMBS) fell 30% today in a matter of five minutes. It immediately bounced back. The cause for this move was speculated as a trader with a “fat finger”. A trader simply messed up and sold too much stock accidentally, causing a swift and violent sell-off.
The trades were later deemed erroneous and busted by the exchange.
But what if the real cause wasn’t just a trader with a “fat finger”, accidentally selling too much stock? What if it was something more serious? I believe it is. I believe the real cause for this move is a major concern for our markets. The real cause may have been high frequency market making gone bad. Let me explain.
Market making is the practice of quoting both bids and offers on the same security, in hopes of capturing the spread. Market making has existed in our markets since the beginning. Traditionally it was done by floor brokers, floor traders and specialists. With the rise of the internet in the last 1990s, new players emerged in the market making practice. Proprietary traders, and E-traders began to play the game. This led to increased competition and tighter spreads. But in the past five years a new player has emerged, and this player has become dominant, knocking many of the competitors out of the game. This new player is the high frequency algorithmic trader, and it’s not a person, it’s a computer. 70% of our daily volume is now done by algorithmic computer systems. Much of this volume is market making. Why has the HFT computer become such a dominant player? It has to do with their edge.
High frequency algorithmic systems have been programmed to step inside the NBBO (National Best Bid and Offer), and be the best bid and best offer. This puts the computer system at the front of the line to be first for execution, and gives the computer the best chance to capture the spread. Unfortunately, this practice is dominated by a few large firms, and they have driven traditional market makers out of the market. If a traditional market maker places a bid, the computer automatically steps in front. In some cases, it steps in front by as little as 1/100th of a penny (a practice called sub-pennying, which is discussed on my website http://www.defendtrading.com).
These programs are very predatory and step in front of the NBBO on a constant basis. This has driven liquidity providers out of the market. Our proprietary trading firm, Bright Trading LLC, in the early 2000s, used to account for 2% of the volume on the NYSE. Now we account for just a fraction of that. Our 400 traders used to provide a substantial amount of liquidity to the market. But due to predatory HFT market making practices, we now provide very little liquidity. We are now liquidity takers. The rational is simple, if we place a passive limit order (providing liquidity), the HFT algorithmic programs simply step in front of us. If we do get filled on a passive order, it is almost always because we are wrong. You are sub-pennied when you’re right, filled when you’re wrong. Hence, there is no point to us providing liquidity. Other proprietary trading firms, floor traders, and specialists are in the same boat. There is no way for them to compete with the algorithmic programs, so they don’t place passive orders.
Without traditional market makers, willing to step up and be the buyer of last resort, we risk having more incidents, like the Rambus incident.
Computerized algorithmic market making works in any type of oscillating market, as the computer can keep flipping out of it’s longs, and covering it’s shorts. It works in a trending market, as long as there is some type of choppy trade. The problem lies, when the computer system can’t flip out of the position. Most algorithmic systems are programmed with some type of risk parameter. If this risk parameter is breached, the computer will dump it’s position and cut it’s losses. This is what may have happened in RMBS today. An algorithmic system making markets on the long side, got too long, and was unable to wiggle out of the position because of the follow-through in selling pressure. Once it was down so much in the position (the risk parameter was breached), it dumped. This simply added fuel to the fire. That is why the sudden plunge to $16 happened. If you check the chart, you will not see this, because Nasdaq busted all trades under $22. But don’t kid yourself, these trades happened, and we should be very alarmed, because it will happen again, and it may happen to the entire stock market.
High frequency traders make markets on ALL stocks. As they continue to take dominance, and as more and more liquidity providers are driven out of the market by these HFT predatory algorithms, the likelihood of a crash continues to climb. All it takes is a little bad news, and a breach in the HFT’s algorithmic system’s risk parameters, and we’re in a lot of trouble.
This has happened before, it WILL happen again.
Rambus was ONE stock today. Imagine if it was the entire market.
Dennis Dick, CFA
Bright Trading LLC
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"Nope - CNBC specifically said he typed a "B" instead of an "M" - such is the dumbed down nature of that channel"
yeah, at 520 pm or so.... jim cramer went on mathews hardball and said B instead of an M.
Seemed pretty damn weird that a mistake like that can lead to a freefall of 1000 in an hour. when i saw it live this afternoon, I calmly loaded the rifles and figured the end was here hahaha
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Ha ha ha. Mine already are loaded. Lol.
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My stuff took a small dip overall, but nothing major. Wish I had jumped on the Sam Adams stock....went from $55 a share to ZERO....could have loaded up on that and had a nice day, but I wasn't able to be logged into my program during that time.... >:(
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for real... you have to laugh... cnbc INSTANTLY had that "fat finger" defense ready.
once experts picked that apart, it became "nobody really knows, probably the computers or something".
Personally, I smell something fishy when they immediately have a cover story ready lol... one that ppl will laugh off around the water cooler, and just accept the big deal as no big deal.
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"Nope - CNBC specifically said he typed a "B" instead of an "M" - such is the dumbed down nature of that channel"
yeah, at 520 pm or so.... jim cramer went on mathews hardball and said B instead of an M.
Seemed pretty damn weird that a mistake like that can lead to a freefall of 1000 in an hour. when i saw it live this afternoon, I calmly loaded the rifles and figured the end was here hahaha
Bro - honestly - that is one your funniest posts ever. I saw it on my blackberry while driving on the Bronx River Parkway stuck in traffic and almost crashed the car. ;D ;D
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My stuff took a small dip overall, but nothing major. Wish I had jumped on the Sam Adams stock....went from $55 a share to ZERO....could have loaded up on that and had a nice day, but I wasn't able to be logged into my program during that time.... >:(
That trade would be Cancelled...
That would be nice buying it for one cent and cashing out for 40 dollars or so... a 100 dollar investment would be worth 400,000
I actually had some put options that hit my limit price cause of the huge dip, so i'm happy with what happened..
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Nasdaq CEO just said that the "fat finger" theory is bs.
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Nasdaq CEO just said that the "fat finger" theory is bs.
Yes, it's bullshit.
There trying to hide the vulnerability the stock market is subject to..NYSE Blames Nasdaq for the problem. It's the high frequency trading programs that are responsible for the problem.
Since they act as market makers,and have put real market makers out of buisness..
However, traditional MM's were the buyers of last resort, and yesterday there were zero buyers and million of sellers at the same time.
The High frequency programs didn't step in and buy
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Dow Jones Industrial Average(DJI: ^DJI)
Index Value: 10,249.84
Trade Time: 10:29AM EDT
Change: 270.48 (2.57%)
Prev Close: 10,520.32
Open: 10,519.42
Day's Range: 10,259.29 - 10,579.12
52wk Range: 8,057.57 - 11,309.00
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Quotes delayed, except where indicated otherwise. Currency in USD.
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Dow Jones Industrial Average(DJI: ^DJI)
Index Value: 10,249.84
Trade Time: 10:29AM EDT
Change: 270.48 (2.57%)
Prev Close: 10,520.32
Open: 10,519.42
Day's Range: 10,259.29 - 10,579.12
52wk Range: 8,057.57 - 11,309.00
.
Quotes delayed, except where indicated otherwise. Currency in USD.
You shouldn't use the Dow Jones as the Benchmark for the stock market.
You should consider using the S&P 500, as the Dow Jones is a flawed index. It's Price weighted as opposed to capitalization weighted like the S&P 500. That means that companies with high stock prices cause the dow index to move the most.
Please consider using the S&P 500 as it's more reflective of the stock market as a whole. It's cap weighted as opposed to price weighted
The S&P 500 is at 1,109, it's only down about 1.64%..
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I think there is crazy manipulation going on.
How can we trust anything anymore?
Seriously? If one key stroke from one computer can crash the system, what is to stop someone in the Fed or somewhere else from moving the market wherever it wants things to go?
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I think there is crazy manipulation going on.
How can we trust anything anymore?
Seriously? If one key stroke from one computer can crash the system, what is to stop someone in the Fed or somewhere else from moving the market wherever it wants things to go?
Exactly Bro.. A hand full of firms control about 70% of all trades done on the NYSE and Nasdaq. These firms have to much control, and can manipulate the markets direction. Also these firms act as market makers. However, they are not interested in providing market participants with the best buy and best sell price. The provide zero economic value, other than to reap mass profits. Goldman should have been grilled by congress for this. Goldman has one of the most successful HFT operations, it also has stakes in several other successful HFT trading firms.
Essentially Goldman can dictate exactly where the market goes, and when..These HFT's problems also present a major conflict of interest, and are firms who engage in this practice are acting with poor ethical standards.
I had two family members already call me today and ask me if they should get out of the markets now. My response was are you retiring? ;D
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Obama will be speaking about the Market any minute now..
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BTW
The largest trade that can be entered at once on Stock emini futures is 2000 per order..
Somebody Should Hang the NYSE: Jim Rogers
Buzz up! 3
Print
Topics:Stocks
On Friday May 7, 2010, 10:47 am EDT
The suspected erroneous trades that exacerbated the Wall Street's fall on Thursday should be investigated and solutions must be found if the New York Stock Exchange is to maintain its reputation, investor Jim Rogers told CNBC late Thursday.
The Dow ended Thursday's session down 3.2 percent, at 10,520.32, after being down as much as 998.50 points earlier, the index's biggest intraday drop on record.
According to regulatory officials, "a huge, anomalous, unexplained surge in selling" happened at about 2:45 p.m. New York time, setting off trading based on computer algorithms, thus amplifying the fall.
"Somebody should hang this New York Stock Exchange," Rogers said. "They claim to be the center of the world's capitalism, of the world's financial markets, you would think that in 2010 they could sort out simple things like electronics."
The New York Stock Exchange is investigating the cause of the possible erroneous trades.
But any tech problems alone are not to blame for the whole of the collapse as a decline was overdue, he added.
"It's time for a consolidation, there's always a reason for consolidation when it comes, the market went up for 13 months in a row, now we're going to, you know, correct for a while," Rogers told CNBC. "In my view the correction should have started sooner."
Rogers said he was long the dollar and the yen but "unfortunately" he was also long the euro, which economists predicted will collapse.
"You never have enough shorts when things collapse," he said. "I think people should be looking for shorts or defensive positions because we're going to have problems for a while, at least in my view."
Giving money to Greece will not solve its problems, it will only postpone them, as liquidity injections in other parts of the world have done, Rogers warned.
"As I've been saying to you all before, 2010 and 2011 are going to be years of currency turmoil not just in Europe but all over the world and Greece is bankrupt," he said.
"We can paper it over for a while, just as we papered over some of the problems in the US and the UK but the problems are going to come back," said Rogers.
Correction: A previous version of this story said a "glitch" at the New York Stock Exchange caused an accelerated selloff. This version makes clear the cause for the sudden surge in selling is unknown, but that erroneous trades are suspected.
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agreed 33.
and props for not just doing what the rush-heads are doing, just blaming obama. Nobody credited obama when it rose from 7k to 11k... so when it drops to 10k because of some shit in Greece that Obama can't control, I would hope he couldn't get the blame.
Your friend Matt T did.
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I will blame obama for making a bad situation worse.
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That trade would be Cancelled...
That would be nice buying it for one cent and cashing out for 40 dollars or so... a 100 dollar investment would be worth 400,000
I actually had some put options that hit my limit price cause of the huge dip, so i'm happy with what happened..
Really? So if I had bought it at around $5 or $10 a share, my trade would have been cancelled?