Wednesday, May 14, 2014
Flash Crashes and Flash Spikes Rattle Markets 5/13/14; AOL Trades Cancelled
On Tuesday, 5/13/14, at 3:49 PM, minutes before the closing bell, the exchanges experience wild price action in AOL, NDAQ, NBR, LO, MPC, CNQ and other stocks. The flash crashes and flash spikes are suspected to be erroneous trades. Prices return to the same relative levels as before the one-minute flash moves but the AOL trades are cancelled.
AOL drops from 37 to under 33 and then recovers; a flash crash of -11% and then +11% recovery in one minute. NDAQ drops from 37 to under 35 and then recovers; a flash crash of -8% and then +8% recovery in one minute. NBR spikes from 25.7 to 28.2 and then drops to the original price; a flash spike of +10% and then -10% drop in one minute. As usual, the exchanges do not know the root cause but HFT is a likely suspect. The NYSE is investigating the flash moves. Lift the rug so the price action can be easily swept under and ignored. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.