Comments on: The weirdly rational flash crash http://blogs.reuters.com/felix-salmon/2010/05/20/the-weirdly-rational-flash-crash/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: JDonovan http://blogs.reuters.com/felix-salmon/2010/05/20/the-weirdly-rational-flash-crash/comment-page-1/#comment-16088 Tue, 22 Jun 2010 16:25:56 +0000 http://blogs.reuters.com/felix-salmon/?p=3935#comment-16088 Very interesting. We at Nanex have completed our analysis of the Flash Crash of 05/06/2010. What we found may surprise you:

http://www.nanex.net/20100506/FlashCrash Analysis_Intro.html

– Jeff

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By: DavidMac1556 http://blogs.reuters.com/felix-salmon/2010/05/20/the-weirdly-rational-flash-crash/comment-page-1/#comment-15118 Mon, 24 May 2010 08:02:15 +0000 http://blogs.reuters.com/felix-salmon/?p=3935#comment-15118 Absolutely terrific techno-reporting! Remember, though, that the stock market is a MARKET. Every share sold has a buyer. When the market bottomed, there were buyers scooping up the detritus at bargain prices.

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By: chevenez http://blogs.reuters.com/felix-salmon/2010/05/20/the-weirdly-rational-flash-crash/comment-page-1/#comment-15114 Sun, 23 May 2010 06:48:40 +0000 http://blogs.reuters.com/felix-salmon/?p=3935#comment-15114 This is a test, only a test…..

Wait tell the real thing……..

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By: STORYBURNcom2 http://blogs.reuters.com/felix-salmon/2010/05/20/the-weirdly-rational-flash-crash/comment-page-1/#comment-15103 Sat, 22 May 2010 03:15:51 +0000 http://blogs.reuters.com/felix-salmon/?p=3935#comment-15103 We’ve had two flash crashes since then

http://storyburn.com/

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By: Beezer http://blogs.reuters.com/felix-salmon/2010/05/20/the-weirdly-rational-flash-crash/comment-page-1/#comment-15098 Fri, 21 May 2010 20:19:52 +0000 http://blogs.reuters.com/felix-salmon/?p=3935#comment-15098 Last time I saw such a drop was 1987. And it took all day, not 30 minutes roundtrip.

Don’t draw any conclusions whatsoever, other than one. The place was a falling knife everywhere but on the NYSE.

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By: MitchW http://blogs.reuters.com/felix-salmon/2010/05/20/the-weirdly-rational-flash-crash/comment-page-1/#comment-15084 Fri, 21 May 2010 15:09:32 +0000 http://blogs.reuters.com/felix-salmon/?p=3935#comment-15084 Well, sure. That’s why everyone was so worried on May 6: there’s a good case that this is exactly where stocks should be.

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By: dicktracy150 http://blogs.reuters.com/felix-salmon/2010/05/20/the-weirdly-rational-flash-crash/comment-page-1/#comment-15080 Fri, 21 May 2010 13:19:43 +0000 http://blogs.reuters.com/felix-salmon/?p=3935#comment-15080 The levels just showed what the initial support level was where traders would start buying. Nothing strange at all. Looks like everyone is spooked enough to not buy at this support level though.

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By: snick http://blogs.reuters.com/felix-salmon/2010/05/20/the-weirdly-rational-flash-crash/comment-page-1/#comment-15078 Fri, 21 May 2010 12:37:48 +0000 http://blogs.reuters.com/felix-salmon/?p=3935#comment-15078 whoa, you’re violating the first law of HFT scapegoating: no facts allowed. But since you’ve let the cat out of the bag, yes, if you examine the tick by tick data you discover a very sane, well functioning marketplace absorbing 240,000 odd ES contracts during 2:43, 2:44, and 2:45, and handling the hedging fallout of the sale of such massive amounts quite well, especially given the initial position of every market maker on the planet. Even in having its capacity completely overwhelmed, the liquidity provisioning system worked and did the rational thing given its finite capital: it got out of the way of the tsunami and lived to fight another day. Which happened about 5 minutes later when the market almost completely recovered the incremental loss from the -350 Dow starting point. Something functioned well indeed.

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By: Sensate http://blogs.reuters.com/felix-salmon/2010/05/20/the-weirdly-rational-flash-crash/comment-page-1/#comment-15059 Fri, 21 May 2010 03:05:54 +0000 http://blogs.reuters.com/felix-salmon/?p=3935#comment-15059 Let’s wait and see what GS reports as their profit for that day. Front-running this had to be very fish-in-a-barrel. I’m going with the over.

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By: dWj http://blogs.reuters.com/felix-salmon/2010/05/20/the-weirdly-rational-flash-crash/comment-page-1/#comment-15034 Thu, 20 May 2010 20:31:56 +0000 http://blogs.reuters.com/felix-salmon/?p=3935#comment-15034 I’m totally going to deploy the phrase “noted efficient markets theorist Felix Salmon” at the next possible opportunity.

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