|The casino on Wall Street dropped 140 Dow points today when a trader whose short position was underwater tweeted, "Breaking: Two Explosions in the White House and Barack Obama is injured." This type of bogus rumor used to hit the market regularly, but was usually ineffective at moving prices. Today, all it took was a 140-character message supposedly issued by AP and traders cure their bad trade quickly. Computers monitor tweets and send orders flashing through the system in microseconds.
Clearly, the machines have taken over this market. It's getting dangerously to use stop orders.
And, just in case you were wondering, this is a sign of a market that's unsustainable. Flash Crashes are warning signs that the market is about to come unglued.
Tuesday, April 23, 2013
Twitter Lie Shaves $136.5 Billion From LargeCaps
Posted by Unknown at 17:56