Flash Crash of Tuesday 1:06 P.M.
Anyone know what happened or why?
Do these occurrences really have any effect and should we get used to them? Didn't impact me at all and I'm starting to wonder if even as a monthly event these huge swings are relevant over the course of about 15-20 seconds.
Only report on it I could find this early.
http://www.fool.com/investing/general/2013/04/23/these-3-stocks-lead-th…
"The stock market briefly dropped, then recovered, after the Associated Press’ Twitter account was hacked and a fake tweet about an attack on the White House was posted.
The AP released the following statement at 1:12 p.m.: “The (at)AP twitter account has been hacked. The tweet about an attack at the White House is false. We will advise more as soon as possible.”
The Dow Jones industrial average fell more than 150 points after the fake Twitter posting, then quickly recovered."
http://www.washingtonpost.com/business/stock-prices-rise-on-wall-street…
Algo's are such a scam everything is now one giant correlated asset
Pretty sure an actual bombing would be a risk-off event. This has nothing to do with algos.
If you don't like correlation, you should blame the EMH and all the money tied to indexing, not algos.
Regardless of the technicals of algos (Idk them at all), a person could second guess news like this while a program wouldn't. If you heard the WH was bombed on twitter, wouldn't you say "Wait a minute"?
The issue is the timing. This small flash crash was caused by one fake story from ONE source ( a tweet no less). Even if a person had actually seen the AP tweet when it was posted, they would have also seen it all over Bloomberg, CNBC, emails, texts, etc. They would have been able to verify it from multiple sources relatively easily and within 30 seconds or so. The computer can't "reason" or "verify" correctly and it instantly begins selling. If this had been a real story then of course the market would have gone down, the fact that it was fake and nearly everyone knew it was fake within minutes of the posting, but that didn't stop algos from slamming the market.
I'm sure someone found out why stop loss orders aren't always safe anymore though. Intel lost 27 cents a share in like 20 seconds lol.
Lol, stop orders. Old media are retards nothing new.
Rumor has it the AP Twitter account password was "password".
ROFL hahaha...Welcome to the 21st century. Where you can make more money in 20 minutes of front running volatility plays before hacking poorly protected websites than you could doing 20 years of manual labor.
More evidence why you shouldn't trade with stops
http://dealbreaker.com/2013/04/guy-looks-up-at-scoreboard-and-surmises-…
[quote=streetwannabe]http://dealbreaker.com/2013/04/guy-looks-up-at-scoreboard-and-surmises-…] What's funny is that even if every human knew it was a bs headline, they were still eager to sell the shit out of the market. It's all about bucks; nothing else matters.
This was actually a long time for a flash crash...You could have bought the noise if you were so inclined.
I've never seen anyone angry making money.
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