Friday, May 24, 2013

Utilities Sector Flash Crashes in UTIL, AEP and NEE

The markets continue to print flash crashes with frequency. On Thursday, 5/23/13, after the opening bell at 9:30 AM EST, a data feed problem and excessive sell orders are blamed for flash crashes in the utilities AEP, American Electric Power, and NEE, NextEra Energy, as well as the broad UTIL utility index. UTIL collapsed through the 200-day MA to 445 from 507, a -12 % drop, but recovered in about fifteen minutes time.  AEP fell from 49 to 23, -53%. NEE fell from 79 to 35, -56%.

The surprising aspect is that the stock exchange says the trades will stand. Utilities are Ma and Pa stocks. Imagine the surprise and horror when gray-haired Dad and blue-haired Mom see their safe haven stocks collapse. Moreover, those with market orders are burned severely. If you placed an unprotected order in AEP or NEE to sell you just lost -50% of your money courtesy of the largest casino on earth. The flash crashes are expected to continue moving forward. Perhaps another 5/6/10 Flash Crash event is on the table?


  1. ''Perhaps another 5/6/10 Flash Crash event is on the table?''

    more than one. :)
    i've told you some time ago ... flashy-crashy May-June 2013! :)

    yes, there will be more falshes soon ... first in different stocks / sections of the market, than one big crashy move as per indexes.

    that's why i've told everybody to unload longs / stoks at the heights and stay a while in cash without shoprting! the big bad financial boys have prepared something.

    Advice: when catching a flashy-crashy move that's significant (more than 50%) load strongly stocks/etf's/longs on that.
    Because the big bad financial boys know that FED (crested by the biggest banks in US at the beggining of XX century) will come and throw more money to 'save' them form self-inflicted 'crashy' biases...
    It's all about money, my dear KS.

    QE is a form of thievery against the average people - monetization favors the transfer of value from all citizens to a few that are directly connected to FED.
    FED, by giving, they take.

    May and June (maybe until August) 2013 will be 'motivational' months for FED to NOT cut QE, but, moreover to upgrade it to maybe 100 or 125 or 150 bln $/month!
    You'll see and you'll remember this comment!
    There's more flashy-crashy induced actions to come!



    "Any time you see any market in the world go up by this amount in six months, you are bound to see volatility in the trading, Bullard told CNBC "

    Well, Mr. Bullard, SPX 500 rose also at a parabolic pace since Nov' 2012 and the last 4 weeks it went even more crazy! And US stocks, like Japanese's, are pumped with QE!

    Are you trying to tell us something Mr Bullard? :)?



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