According to Maureen Farrell of CNNMoneyInvest fame there may not
have been any major market malfunctions recently, but mini flash crashes still
happen nearly every day. Stock exchanges
don't publicly release data about these mini crashes -- when a stock rapidly
plunges then rebounds -- but most active traders say there are at least a dozen
a day. Dennis Dick, a proprietary trader
at Bright Trading in Detroit, said he stopped tracking them because they happen
so frequently.
While none have been as disruptive as the "flash
crash" of 2010, or the ones that marred the IPOs of the BATS exchange and
Facebook in 2012, they highlight the fragility of markets increasingly
dominated by high frequency traders who count on fancy algorithms to make a
quick profit. So far this year, these mini crashes have taken place in shares
of Apple, Berkshire Hathaway, insurance broker Aon and apparel maker Hanesbrands....
Wait...wait...there's more at http://money.cnn.com/2013/03/20/investing/mini-flash-crash/index.html?iid=SF_BN_River
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