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Why Trades Following Monday’s NYSE Glitch Are Likely to Be Reversed Monday’s NYSE glitch prompted many investors to seize the opportunity to acquire Berkshire Hathaway’s Class A shares at a staggering discount exceeding 99%, according to FactSet data. However, even if some managed to execute orders before trading halted, it’s probable they won’t retain ownership of those shares, according to officials from two Wall Street trading firms. The New York Stock Exchange intends to review any trades potentially affected by the glitch, as stated by a spokesperson to MarketWatch. Moreover, Joe Saluzzi, co-founder of Themis Trading, emphasized that trades precipitating Monday’s drastic decline are expected to be voided under the exchange’s policy on “clearly erroneous transactions,” empowering market makers to challenge trades stemming from glitches. Jonathan Corpina, senior managing partner at Meridian Equity Partners, shares this sentiment, foreseeing a reversal of trades executed at incorrect prices. Berkshire BRK.A, +0.59%, Bank of Montreal BMO, -0.22%, Barrick Gold ABX, +2.19%, and 37 other stocks were subject to halts for volatility by New York Stock Exchange group exchanges on Monday, following significant declines, according to a statement from a New York Stock Exchange spokesperson. Berkshire shares plunged to 99.97% to $185.10, compared to $627,400 on Friday, before being halted at 9:50 a.m. Eastern time. In theory, this would have nearly halved Berkshire’s market capitalization to $536.3 billion by around 11 a.m. Eastern time on Monday, compared to $897.1 billion on Friday, according to Dow Jones Market Data. Trading in Berkshire’s Class B shares BRK.B remained unaffected. Trading in all affected stocks resumed shortly before noon. The glitch stemmed from a technical issue with industry-wide price bands published by the Consolidated Trade Association’s Securities Information Processor, triggering “limit-up/limit-down” trading halts soon after Monday’s market opening, according to the NYSE spokesperson. Monday’s incident echoed a trading glitch in January 2023, where NYSE’s opening auction issues led to trades in over 250 securities being filled at incorrect prices. At that time, the exchange stated that those trades wouldn’t be honored. John PaulJohn Paul is the founder of DayTradeToWin, a trading education and software company established in 2008, supporting traders worldwide. His expertise focuses on price action-based futures trading strategies and structured market analysis. DayTradeToWin delivers trading education, indicators, and software tools designed to help traders apply disciplined, rule-based decision-making across global futures markets. He is the creator of multiple trading methodologies, including the Sonic System, Atlas Line, and Trade Scalper, which help traders identify structured opportunities in markets such as the E-mini S&P 500 (ES), Nasdaq (NQ), crude oil (CL), and gold (GC). Official website: https://daytradetowin.com daytradetowin.com

As summer and the mid-year mark approach, investors are finding success by sticking with stocks. Clare Hart, Morningstar’s 2024 “Outstanding Portfolio Manager,” shares her strategy as she wraps up a two-decade tenure at JPMorgan’s Equity Income Fund (OIEIX). Under her guidance, the fund has averaged a 9.4% annualized gain since 2004, outperforming both Morningstar’s large value category and the Russell 1000 Value Index by over a percentage point. Hart’s investment approach centers on stocks that meet three criteria: quality, reasonable valuation, and dividend payouts. She seeks companies with reliable management and strong industry positions, often focusing on underappreciated innovators. Examples include Philip Morris International (PM) with its shift towards a “smokeless” future, and Procter & Gamble (PG), which leads market innovation. Big Tech also features in her portfolio, with holdings in Microsoft (MSFT) and a smaller position in Apple (AAPL) due to valuation concerns. Financials make up the largest sector in her portfolio, with Wells Fargo (WFC) as a top holding. Despite the turmoil surrounding Silicon Valley Bank last year, Hart saw it as an opportunity, confident in Wells Fargo’s potential post its Fed-imposed balance sheet cap. Charles Schwab (SCHW) is another notable holding, seen as a stable long-term investment with strong online tools for investors, despite last year’s concerns about its deposit base. Energy stocks also play a key role in Hart’s fund, with ConocoPhillips (COP), Chevron (CVX), and Exxon (XOM) among the top holdings. Hart is optimistic about energy, recognizing the importance of these companies in the transition from fossil fuels and their commitment to efficiency and environmental friendliness. As Hart prepares to hand over the fund in September to co-managers Andrew Brandon and David Silberman, she voices one ongoing concern: inflation. She notes that consumers continue to spend despite rising prices, and she anticipates that inflation fatigue could eventually impact the market. John PaulJohn Paul is the founder of DayTradeToWin, a trading education and software company established in 2008, supporting traders worldwide. His expertise focuses on price action-based futures trading strategies and structured market analysis. DayTradeToWin delivers trading education, indicators, and software tools designed to help traders apply disciplined, rule-based decision-making across global futures markets. He is the creator of multiple trading methodologies, including the Sonic System, Atlas Line, and Trade Scalper, which help traders identify structured opportunities in markets such as the E-mini S&P 500 (ES), Nasdaq (NQ), crude oil (CL), and gold (GC). Official website: https://daytradetowin.com daytradetowin.com