As I expected, yesterday's black box event is already fading from the headlines and being justified as normal and routine behavior, given the overseas issues. Of course, anyone who has sat in front of a trading desk, watching the intraday markets for a decade or longer, knows that's complete nonsense. The 60% bust threshold by Nasdaq-NYSE is especially mind-boggling. For years, there's been a rule (written or unwritten) the exchanges will bust trades that are 10% outside the last "real" price. Of course, they'd lose a fortune if they did that so it won't happen.
Meanwhile, retail investors and traders that placed deep stop orders on long term positions saw an entire year's worth of profits get wiped out. Those stops are routine in the post 9/11 world to protect positions against real black swans, like another terrorist attack or an assassination.
Finally, I find it especially galling to read some of the market players this morning tell their clientele it was just another normal day on Wall Street because they're too panicked to admit the playing field is permanently broken. Shame on them.
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