07 May 2010

Clarification about Computer Glitch or Human Error at NYSE last night

Just a brief clarification regarding the headlines all over the world's media. There are three things you should know if you're still confused.

1) Dow Jones Industrial did DROP sharply. It was down -250 points before the glitch or human error. That error did drag the market down by -900 points but very briefly, then DJI recovered very fast and ended close down by -350 points. -350 points down is by human decision and not because of the computer or any error at all.

2) The glitch happened between 2:30pm-3:00pm US EST. I was watching the market as well. From 3pm to 4pm, DJI recovered but could not get past 10520.32 mark. So, to remove the glitch error from your Technical Analysis, it is better to make the low of DJI 9869.62 the same as the Close 10520.32. Otherwise, your chart will be distorted big time.

3) Greece debacle still hasn't finished. Do NOT jump into the market tonight to catch bargains. Better to wait till the downtrend momentum shows trend reversal sign and Greece and Euro nasty stories are clear.

Happy Hunting!

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