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Old Mar 23, 2012, 11:24 AM   #1
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Apple Stock Trading Halted Briefly on Sudden 9% Drop




BusinessInsider reports some strange activity on Apple's stock today. Trading was halted due to an abrupt drop of over 9%.
Quote:
The stock crashed 9% to $542.80 before trading was stopped. When the stock started trading again, it opened at $598.39
Trading has since resumed, but there has been no clarification on what happened. StreetInsider speculates that it was "an apparent errant trade".
With news of the dividend and record iPad sales, Apple's stock has been at all time highs in the past week.

Update: Bloomberg pinpoints the issue to a single trade for 100 shares executed by Bats Global Markets Inc.
Quote:
A single trade for 100 shares executed on a Bats venue briefly sent Apple, the world's most valuable company, down to $542.80, triggering a circuit breaker that paused the shares. The order was executed at 10:57 a.m. New York time. Two more transactions, which sent the stock back above $598, were made before the halt. The stock stayed around that level once trading resumed.
Article Link: Apple Stock Trading Halted Briefly on Sudden 9% Drop
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Old Mar 23, 2012, 11:26 AM   #2
zzLZHzz
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must have scare the hell out of people even though most people think it is not possible
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Old Mar 23, 2012, 11:26 AM   #3
Verita
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buy buy buy! Too bad it was an error and didn't trigger my limit call.
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Old Mar 23, 2012, 11:27 AM   #4
Xenomorph
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Apple tried using Bitcoins, apparently.
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Old Mar 23, 2012, 11:27 AM   #5
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It was that Samsung VP of Design doing something "creative".
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Old Mar 23, 2012, 11:27 AM   #6
DotCom2
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THAT scared the heck outta me!
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Old Mar 23, 2012, 11:29 AM   #7
ryanmcv
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Someone, somewhere just had a mild heart attack.
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Old Mar 23, 2012, 11:30 AM   #8
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Fat fingers again?
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Old Mar 23, 2012, 11:30 AM   #9
EricBlue
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Yet another trading robot gone bananas.
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Old Mar 23, 2012, 11:31 AM   #10
michaywood
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man! I thought the Great Depression was about to happen again!


SELL SELL SELL!!!!
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Old Mar 23, 2012, 11:32 AM   #11
rdowns
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Wow, I would have been really pissed if my stop loss order kicked in over an error.

Goes to change stop loss order.
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Old Mar 23, 2012, 11:32 AM   #12
Pos7al
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It was because of Bats

"A single trade for 100 shares executed on a Bats Global Markets Inc. venue briefly sent Apple Inc. (AAPL) down to $542.80, triggering a circuit breaker that paused the shares for five minutes.

The order was executed at 10:57 a.m. New York time. Two more transactions, which sent the stock back above $598, were made before the curb halted trading. "


HAHAHA, poor guy probably pooped himself after he saw the purchase/drop.
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Old Mar 23, 2012, 11:33 AM   #13
Floris
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Sorry.. MY BAD..
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Old Mar 23, 2012, 11:33 AM   #14
Lesser Evets
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...well... my lack of faith in the stock market has once again been reinforced. All gamblers will play those dangerous games while the slow and steady gets you there without pain or worry.
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Old Mar 23, 2012, 11:34 AM   #15
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Taste of their own medicine

From the article
Quote:
The crash is being blamed on the BATS exchange, which is an electronic trading network that allows traders to trade stocks outside of the major stock exchanges.Oddly enough, BATS just IPO'd today and its stock is suffering from its own flash crash right now.
I wonder if they used their own network to trade on their IPO.
But what do I know; I think "Wall Street" is an oxymoron

[EDIT](NOTE:the original linked article has been changed since this was first posted.)
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Old Mar 23, 2012, 11:37 AM   #16
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The trade hamster fell off the wheel.
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Old Mar 23, 2012, 11:39 AM   #17
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House of cards.....
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Old Mar 23, 2012, 11:39 AM   #18
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Bloomberg reports it was an erroneous trade for 100 shares done on the BATS network. That pin (downward spike) was similar to one the morning of 3-30-12 9:30 am to 582.00. These errant trades are often caused by large block sales which mostly liquidate around the prevailing price where there are lots of buyers and sellers at any moment, but if the block size exceeds momentary supply the market maker lowers the price until standing orders soak up the remainder of the order. This typically only happens with market orders, not limit orders.

There is also a trading tactic used by flash traders to intentionally manipulate the price with large block trades to get a better entry price for position trades.

This reminds me of the flash crash where Apple stock momentarily traded for over $10,000 a couple of months ago.

It's cool to watch real time on a terminal because it dwarfs all the other price action of the month and is instantly visually dominant.

Had the trade had any legs at all I would have made a bunch on the trade.

The event was momentary and the stock was only halted around 3 minutes.

http://www.bloomberg.com/news/2012-0...-rebounds.html

BATS is their symbol on today's IPO but it is also the symbol for British American Tobacco plc, http://www.google.com/finance?q=LON%3ABATS

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Last edited by Rocketman; Mar 23, 2012 at 12:15 PM.
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Old Mar 23, 2012, 11:39 AM   #19
locust76
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Apple's stock beachballed for a second.
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Old Mar 23, 2012, 11:39 AM   #20
M1chbeck
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stock trader is probably the most unnecessary profession in the world.

Become a farmer, grow food.
Become a construction worker, build something.
The world would be a better place for sure.
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Old Mar 23, 2012, 11:40 AM   #21
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Ha, the entire Australian stock exchange has been completely manipulated for years and nobody even bats an eyelid.... What a corrupt world we live in.
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Old Mar 23, 2012, 11:40 AM   #22
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Quote:
Originally Posted by Lesser Evets View Post
...well... my lack of faith in the stock market has once again been reinforced. All gamblers will play those dangerous games while the slow and steady gets you there without pain or worry.
What? The system found a problem and fixed it before it caused damage. What part of this reinforced your lack of faith? Are you reading a different article?
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Old Mar 23, 2012, 11:42 AM   #23
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In all honesty, who cares? Stocks ALWAYS with out fail, will fall. Nine times out of ten they recoup better than before. So what if Apple's stocks fell 9% tomorrow it'll be up 10 - 15%. It's not the end of the world if Apple loses money, they have more than anyone else. Your time would be much better spent helping some random person in your neighborhood than fretting about the stock market, that's real investing.
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Old Mar 23, 2012, 11:46 AM   #24
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Quote:
Originally Posted by JCaternolo View Post
In all honesty, who cares? Stocks ALWAYS with out fail, will fall. Nine times out of ten they recoup better than before. So what if Apple's stocks fell 9% tomorrow it'll be up 10 - 15%. It's not the end of the world if Apple loses money, they have more than anyone else. Your time would be much better spent helping some random person in your neighborhood than fretting about the stock market, that's real investing.
The stock market does not gain or lose Apple money. It actually gains or loses money for some random person in your neighborhood (who owns Apple stock).

Very simply explained (I know there are more details, but this is it in a nutshell): Apple put all it's shares up on the market in 1980 at $14/share. It uses the shares it didn't sell for employee compensation. The more the shares go up, the more likely Apple is to retain employees, as the employees benefit. Apple's bottom line, as a company, does not benefit on shares going above it's initial share price. Apple would have the same amount of money in it's coffers if the stock nose-dived to $0 tomorrow.
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Old Mar 23, 2012, 11:47 AM   #25
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Quote:
Originally Posted by JCaternolo View Post
In all honesty, who cares? Stocks ALWAYS with out fail, will fall. Nine times out of ten they recoup better than before. So what if Apple's stocks fell 9% tomorrow it'll be up 10 - 15%. It's not the end of the world if Apple loses money, they have more than anyone else. Your time would be much better spent helping some random person in your neighborhood than fretting about the stock market, that's real investing.
You didn't even read the article did you?

BTW, a sudden 9% drop in a stock valued at nearly $600 a share is not in any way normal.
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