ON the 06.05.2010 US stock markets had a mini crash, with the Dow falling 1000 points in 11 minutes .
It recovered and eventually closed down 629 points down.
I believe we will see more of these mini intraday crashes and they may even become severe we could even see intraday drops of two thousand points or even more,
the complexity of the trades now been used are far beyond the normal traders and computers are now using Flash trades done in minutes and seconds and billions are at stake, most of this done in shadow derivatives that have a direct impact on what we the normal punter believe is the market but of course it no longer the case.
These shadow markets are where the real markets are to be found, and it is an “unregulated market” and exclusively the preserve of the big Hedge funds and the large global bank players.
To put it in a nutshell the Dow and the NASDAQ are just side shows for the foot folk and is totally manipulated .So when entering this market take this into consideration in you trades!
Attached is a report of the preliminary findings by the staffs of the U.S. Commodity Futures
Trading Commission and the U.S. Securities and Exchange Commission. The
Commissions have expressed no view regarding the preliminary analysis or conclusions
full PDF report here Flash Crash Report