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Technology Stocks : The *NEW* Frank Coluccio Technology Forum

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To: Frank A. Coluccio who wrote (34772)8/6/2010 1:12:23 PM
From: axial  Read Replies (2) of 46821
 
Origins of the Flash Crash

"A close examination of the market’s rapid-fire unraveling reveals some new details about what unfolded: Stock-price data from the New York Stock Exchange’s electronic-trading arm, Arca, were so slow that at least three other exchanges simply cut it off from trading. Pricing information became so erratic that at one point shares of Apple Inc. traded at nearly $100,000 apiece. And computer-driven trading models used by many big investors, apparently responding to the same market signals, rushed for the exits at the same time.

Three months later, many market veterans have arrived at a disquieting conclusion: A flash crash could happen again because today’s computer-driven stock market is much more fragile than many believed. Many investors, still gun-shy, have been pulling money out of stocks."

ritholtz.com

Jim
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