Sunday, December 21, 2014

Increasing frequency of flash crashes and dashes point to instability

SPY flash dashed on Thursday:


The total event was less than 70 ms and involved just over $100M worth of trades. These flash crashes/dashes happen now every day and are usually not noticed - the exception being the Apple flash crash on Dec. 1 that briefly took the stock down by 6%. 

The increase of flash crashes is increasing as confirmed by Eric Hunsader for Nanaex, LLC:


Combined with the deteriorating market breath, wild market swings as witnessed by last week, and wild gyrations of individual stocks, this points to unhealthy market. The last weeks V-recovery gives impression of a strong market but it is actually a sign of unstable market that is on verge of hitting an air pocket. 




No comments:

Post a Comment