Flash Crash of 2010 – Four Years Ago Today

Also known as the Flash Crash of 2:45

nanex.net_PercDrop1

This chart is from nanex.net. It shows the obvious issue with the event. They have good evidence this was intentional.

There is a ton of material for this incident. (I’ll post more material on Sunday.) I’m reminding entrepreneurs of this because sudden downward pressure on stocks are possible. One company I was involved with depended on stock sale of another Startup to be funded. In my case, the downturn for that stock lasted two (2) months – which sunk our company.

FLASH CRASH! Dow Jones drops 560 points in 4 Minutes! May 6th 2010
https://www.youtube.com/watch?v=86g4_w4j3jU
  • Dow Jones (loss) – Time mark on video
  • -438 – start of video clip
  • -516 – 1:00
  • -586 – 2:00
  • -707 – 3:00
  • -860 – 4:00
  • Dow breaks 10,000
  • -995 – 5:00
  • Jim says “Look at (P&G). Buy it!” The market the turns around.
  • -773 – 6:00
  • -683 – 7:00

The Flash crash of 2010 is not the first and only crash of this sort. Crashes of this sort happen all the time. They are discussed in videos I’ll post on Sunday.
and also here:

TEDxNewWallStreet – Sean Gourley – High frequency trading and the new algorithmic ecosystem

https://www.youtube.com/watch?v=V43a-KxLFcg

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