Friday, October 14, 2011
Upside Flash Crash (not out of the question)
Be afraid, be very afraid.
Bears that is.
Eventually, we should all be afraid. We're all going to be snuffed by this stuff at some point. But I'd be shitting rectangles this weekend if I were heavily short and happened to see the after-hours tape tonight.
After the futures closed, the Nasdaq QQQ's flash-crashed 2% higher in a couple seconds. Other derivative ETFs followed suit (namely QLD, QID).
My dog has known for some time we're going to get an upside flash-crash; at least at some point. I share everything with my dog - bouncing ideas of his titled little ears and see how they float. This one floats very well. Quite a few players in this business are caught under-invested and/or short right now. Machines know how to chew-up a situation like this in a hurry. Up the pipes or down the hatch, I don't see how direction has to be in a single direction. This is a dynamic.
If you're heavily short this weekend, you might go out for a nice meal, or two. Catch a movie maybe.
Here's one - Human Pets and the Machines who Adore Them
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