Traders and investors please be aware that the “Flash Crash” of May 6th. was not an isolated incident. I attach two recent examples of similar “events”. The forces that worked in May last are still alive and functioning, however, rather than directing their forces market-wise, they are now targeting specific stocks with very profitable consequences.
In both instances we can observe the characteristic candle tapers which were so evident everywhere on May 6th.
As I noted in my previous piece on this subject if this type of price action continues it will completely undermine confidence in the market and will speed up calls for closer regulation of “dark liquidity pools” in general and the Over The Counter Market (OTC) in particular.
Example 1.
On the 29th. July the stock price of Cisco quickly ran from 26.00 to 22.96.
Example 2.
On the 2nd. June the price of Diebold ran from 18.26 to 29.08
