← Back to All Videos

Ghosts In The Stock Market Machines, And They Are Reading Twitter

Blog Apr 25, 2013

Any one who remembers the Stock MarketFlash Crash” back on May 6, 2010 may have experienced a sinking “Oh no, not again!” feeling from the quick dip the stock market took recently.

At first we were relieved to hear that it was a false call, that it was due to a trading computer picking up on a hacked Associated Press Twitter account. Then the implications began to become obvious and there was a collective “Uh oh.”

Sal Arnuk, a principal at Themis Trading had this to say, “At what point do we actually see the SEC recognize that they’ve created a marketplace that they can’t control?” Arnuk questioned. “Where did the fake Tweet come from? A kid in Uzbekistan? A hedge fund in India? A Russian mobster? Who can regulate it? The answer is, no one at this point.”

The list of possible answers to that question do not stop there. How about a terrorist here in the U.S. or in the Middle East, or a digital crime lord in China, or even a battalion of high-tech cyber-spies in North Korea?

One of the most amazing things to witness was the speed at which this vast amount of assets disappeared and then came back. It gives one pause to think that something we are told has value could evaporate like in a Las Vegas casino.

“It was unprecedented in terms of how fast liquidity disappeared and trading activity pegged at extreme levels,” said Eric Hunsader, founder of Nanex. “When you value speed over everything else, you end up with algos that will shoot first and ask questions later, There’s simply no time for them to do any fact-checking.”

While all assets rise and correct, it may be well advised to take a look at the history of gold, which has never been worth nothing, unlike the components of the stock market.

Thumbnail Photo We believe that everyone deserves a properly developed strategy for financial safety.

Lynette Zang

Chief Market Analyst, ITM Trading

Sources & References In This Article

    Similar Posts

    Blog Jan 9, 2020

    REAL OR FAKE GOLD, BIG VS SMALL BANK DEPOSITS… Q&A with Lynette Zang and Eric Griffin

    Learn More
    Blog Nov 28, 2018

    ENTERING THE MINEFIELD: Is Your Armor Ready? By Lynette Zang

    Learn More
    Blog Nov 27, 2018

    RECESSION to RESET: What Happens Next? Q&A with Lynette Zang and Eric Griffin

    Learn More
    Blog Nov 21, 2018

    A GLOBAL THREAT US & China Clash of the Titans

    Learn More
    Blog Nov 20, 2018

    PRECIOUS METALS STRATEGY: Get the MOST from Gold & Silver. Q&A with Lynette Zang and Eric Griffin

    Learn More
    Blog Nov 16, 2018

    IS THIS IT? Corporate Buybacks vs ETFs By Lynette Zang

    Learn More
    Blog Nov 14, 2018

    ETF-YOU: Will You Get Screwed? By Lynette Zang

    Learn More
    Blog Nov 13, 2018

    THE FUTURE OF GOLD: As Economic Patterns Shift. Q&A with Lynette Zang and Eric Griffin

    Learn More

    Not Sure What Works for You?

    Our team has over a century of combined experience in guiding our customers to the best products is for their wealth protection and preservation goals. Call us today.

    or schedule a call

    Schedule A Strategy Session

    Get Your Free Protection Guide

    Stay Informed

    Receive the latest updates regarding the economy.