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Stocks A to Z / Stocks B / Berkshire Hathaway (BRK.A)
No. of Recommendations: 1
BRKA has been halted with a crazy price down 99%.
BRKB is trading...sort of..but not registering quotes. I've got last posted bid 411.09 ask 411.19 for at least a half hour.
My broker says its trading in the 409s but not registering quotes. Really bizarre.
No. of Recommendations: 0
Follow up...checking alternate display facility quotes I see BRKB trading at 409.21. A few dark pools trades.
No. of Recommendations: 1
Apparently the NYSE has some big data error going on, and BRK-A isn't the only stock affected.
Jim
No. of Recommendations: 0
But difference here is BRKA is HALTED...BRKB is trading. Last trade a minute ago I saw was $408.88 in a very illiquid situation. In tiny transactions.
No. of Recommendations: 3
Just FYI..BRKB continues to trade..I'm seeing trades in the high 409s...last trade $409.87 at 11:12 am.
BRKA was halted at 9:50:50
It traded at $622,484 at 9:50:37
Then 16 small individual a share trades from 9:50:30 to 9:50:49...all filled at $185.10
No. of Recommendations: 1
https://www.nbcnews.com/business/markets/new-york-...New York Stock Exchange says technical issue fixed after Berkshire Hathaway incorrectly shown to fall 99%
Shares of GameStop, AMC Entertainment and Chipotle had also been affected.
June 3, 2024, 7:32 AM PDT / Updated June 3, 2024, 10:34 AM PDT
:-)Shawn
No. of Recommendations: 1
No. of Recommendations: 0
Those trades in the 400's will all get broken and reversed.
No. of Recommendations: 2
There were legal trades that will almost certainly stand in the 408-410 area for the Bs as the Bs were never halted. They continued to trade throughout. But mostly it appears in dark pools.
What's fascinating is--once the A issue was resolved and trading resumed--big time buys came in for the As in the high 600s and low/mid 700,000s. In thin liquidity. These are perfectly legal trades POST the halt.
Soo...guess what A shareholders did? Yup..they sold the As basically an arbitrage and BOUGHT the B shares which soared--well over $416. Then as the As slowly retreated---the Bs followed suit.
Haven't seen anything like this since the flash crash. You can watch this in future with the "time and trade" function on trade platforms.
No. of Recommendations: 3
"New York Stock Exchange says technical issue fixed after Berkshire Hathaway incorrectly shown to fall 99%
Shares of GameStop, AMC Entertainment and Chipotle had also been affected."
Dang, Berkshire has become a meme stock.........
No. of Recommendations: 10
What's fascinating is--once the A issue was resolved and trading resumed--big time buys came in for the As in the high 600s and low/mid 700,000s. In thin liquidity. These are perfectly legal trades POST the halt.
The very low prices--A shares in 3 digits--are clearly errors, and will be unwound if they weren't merely reporting errors, as that is the rule. (Unlike the trades erroneously/unfairly unwound during the famous flash crash, which were entirely valid "sell at market" trades done at very low prices because there just happened to be no decent bids)
But I do wonder if the seemingly normal/valid high trades for A shares yesterday will be busted or not. They do seem valid on the surface of things, but if the tape is correct, who was a buyer at $741,971.38? A few too many people dumb enough to put in a "buy at market" order? Whoever it was, they pushed Berkshire's market cap over a trillion for the first time.
Jim
No. of Recommendations: 4
Excellent questions. I suspect those high trades will stand. The Halt was lifted, and trading resumed. But it'll be quite interesting. A reminder that market orders can be suicide.
It appears a few A shareholders watching the tape may have arbitraged the A share/B share discrepancy too. As the B shares exploded on the upside concurrent withe A shares coming back to earth.
Or Perhaps did the As get manipulated?? Some one stepped in on light A volume immediately after the halt lift and subsequently drove a big increase in B shares, he/she was able to unload??
In any case I think this raises serious questions about the day-to-day legitimacy of these markets. The democratization of hedge fund manipulation with the emergence of meme stock manipulators only serves to add to concerns. Perhaps a non-issue for us long term holders. But I think today's action may be a little telling of...something.
No. of Recommendations: 16
In any case I think this raises serious questions about the day-to-day legitimacy of these markets.
Sometimes I think the biggest illegitimate aspect of the market is the overwhelming desire of regulators and marketplaces to construct and maintain the fiction of an "orderly market". You know, smooth prices with fair executions all the time. That the most recent transaction represents some sort of fair price.
It just ain't so. The reality is that people will exchange shares for money at a wild variety of prices for a wild variety of reasons, and this is perfectly normal. The most recent transaction is not necessarily representative of anything meaningful at all beyond the mere fact that it took place.
If my next door neighbour buys my shed for $100k per square foot for some reason (his garage is too short for his car?), that does not mean that every built square foot in the neighbourhood is now worth (has a market cap) of $100k per square foot. If he buys a share of Berkshire for $742k, that doesn't mean that every share of Berkshire is worth $742k.
Jim
No. of Recommendations: 2
A few people on Reddit admitted to buying A shares using market orders. One poster said it happened in an account with a $250 balance. Upon being exercised at $600K+, they freaked out and immediately sold, leaving them with a -$10,000 balance. I'm not sure how a broker allows a transaction like that to take place, so I'm a bit skeptical.
No. of Recommendations: 5
This appears to me to be an issue of illegality as opposed to maintaining orderly markets.
When groups or individuals conspire to manipulate stock prices--that's illegal. Thats not only happening, its being publicly flaunted.
I, too, don't care about the VIX, beta.... stuff fluctuates, people act irrationally, and yes, prices don't equate to actual value other than coincidence. But laws and do rules matter. And confidence in the administration of the Law matters a lot.
No. of Recommendations: 2
A few people on Reddit admitted to buying A shares using market orders.
At least one of those was from WallStreetBets where they make bad options plays. One guy from there committed suicide when a multi-legged play closed and it looked like he owed hundreds of thousands. Actually the play was slightly profitable and it would have all come out in the wash, but he didn't know enough about the strategy he was doing to understand how it unwound.
So using market orders during some kind of outage and getting burned is par for the course.
No. of Recommendations: 7
This appears to me to be an issue of illegality as opposed to maintaining orderly markets.
Who said anything about illegality?
As far as I know it all stemmed from technical error at the exchange, allegedly somewhat/indirectly related to the T+1 change last week which required rolling out some new software. Early days, but that's what I've seen so far.
When bad tape data rolls out, people will try to trade on what they are seeing. I can't think of anything wrong with trying, though the safety of your pocketbook relies on your knowing about the possibility of trades being unwound.
If I had seen an ask price for A shares in three digits (or four! or five!) while the trading was not halted, I would have tried to buy as many as I possibly could, even if the trades were likely to be unwound. With a limit order, of course.
Jim
No. of Recommendations: 10
https://finance.yahoo.com/news/interactive-brokers...More on this story.
<<<<What's fascinating is--once the A issue was resolved and trading resumed--big time buys came in for the As in the high 600s and low/mid 700,000s. In thin liquidity. These are perfectly legal trades POST the halt.>>>>>
IB is considering recovery and remedies, including legal action on these.
Real lesson is one that has been posted on this board before.
"NEVER, EVER, PLACE MARKET PRICE ORDERS"
No. of Recommendations: 5
Nice suprise this morning when I checked my account at Schwab, was up $2.44B!
Seriously, losing confidence in Schwab or maybe someone else. This is happening way too often.
No. of Recommendations: 4
“ Nice suprise this morning when I checked my account at Schwab, was up $2.44B!”
Wow! We hope you at least took a screenshot! What are a few zeros?!💪😁
