Friday, May 24, 2013

Keystone's Important Flash Crashes

The market flash crashes are very common in markets nowadays. Software glitches, data feed problems, excessive sell or buy order programs, and many other reasons are given for the dramatic stock price failures but no one can accurately state the true cause of these abnormalities. Here is a list of important flash crashes in recent history. Of course the big one was 5/6/10.

5/6/10 Major Indexes Market Flash Crash
3/23/12 BATS IPO Debacle
5/18/12 FB IPO Disaster
8/1/12 Knight Capital Trading Glitch
4/17/13 DAX, CAC, FTSE and Currency Market Mini Flash Crashes
4/22/13 GOOG Mini Flash Crash
4/23/12 AP Twitter Hack Attack Mini Flash Crash
4/25/13 CBOE Software Glitch
5/1/13 AMT and FMC Mini Flash Crash
5/17/13 APC Mini Flash Crash at the Close Orders had to be Cancelled
5/23/13 AEP, NEE and UTIL Utilities Sector Flash Crash Orders are not Cancelled

There are seven events in the last month with a flash crash event now occurring at an average pace of two incidents per week. Is there another 5/6/10 in the future?

1 comment:

  1. hi keystone, been following your analyses for a long time. great information. thank you. i also follow Martin Armstrong and he says "During a Flash Crash, (1) there is a lack of bids underlying the market, and (2) typically what happens is market-makers withdraw out of UNCERTAINTY... All Flash Crash events take place because of the LACK of BIDS." - - Could this be the true cause?


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