The May 6, 2010 Flash Crash also known as The Crash of 2:45, the 2010 Flash Crash or just simply, the Flash Crash, was a United States stock market crash on May 6, 2010 in which the Dow Jones Industrial Average plunged about 900 points'or about nine percent'only to recover those losses within minutes. It was the second largest point swing, 1,010.14 points, and the biggest one-day point decline, 998.5 points, on an intraday basis in Dow Jones Industrial Average history.

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Stock market reaction

A stock market anomaly, the major market indexes dropped by over 9% (including a roughly 7% decline in a roughly 15 minute span at approximately 2:45 pm eastern time on May 6, 2010 before a partial rebound. Temporarily, $1 trillion in market value disappeared. While stock markets do crash, immediate rebounds are unprecedented. The stocks of eight major companies in the S&P 500 fell to one cent per share for a short time, including Accenture, CenterPoint Energy and Exelon; while other stocks, including Sotheby's, Apple, and Hewlett-Packard, increased in value to over $100,000 in price. Procter & Gamble in particular dropped nearly 37% before rebounding, within minutes, back to near its original levels. The drop in P&G was broadcast live on CNBC at the time, with commentator Jim Cramer declaring live, "That is not a real price. Just go buy Procter & Gamble. When I looked at it, it was at 61, I'm not that interested in it. It's at 47? Well, that's a different security entirely



To read more : http://en.wikipedia.org/wiki/2010_Flash_Crash

How could anyone in markets not aware or remember the fateful day?

Now, these are for novices to THINK about panic-selling and future market crashes? What should we do if KLCI down 100 points in an early trade? Recently we do see a VERY volatile markets all around and KLCI is no exception. KLCI down 20+ points in NOT common. KLCI down 40+ points is very rare ... but KLCI down 70+ points? When was the last time you see such situations? Please do homework to understand market-crashes  ... these crashes are real.

When was the last time you see HSI down 1500 points which I highlighted as intensed fear demanding me to grab anything I like. Too much of them ... today, many have recovered 10-30% from the recently minor-crash.

It has been a long time since I saw such a massive selling. Many will be staying sideline for a while ... as the rebound might be short-lived. The 'double-dip' preachers will be back while those in BULLISH camp will slow BELIEVE that we will have a double-dip, eventually.

Does economics data showing us anything positive in US and/or Europe? How about the current 'expensive' KLCI where it reached almost to 1,600 ne high level ... just to give back about 100 points in such a short period of time? What's next? More bad gloomy news will be panned out, more down-grading by our friendly broker-houses blah blah .... in short, suddenly the BULL is hiding in a dark corner.

It is just a downgrading of AAA, which expected. Many are expecting QE3 soon to 'save' the situation and that could push USD lower ... moving gold to yet another new high.

We might see market-crashes here if BN's gov lose most of their seats. Just be prepared to buy when EXTREME selling in place and it is not necessary to take such huge risk ahead of BERSIH, Election and such.

Question : Do you STILL think we will continue the bull run and reaching the magical 1600 level again? If not, as investor point of views ... time to trim or clear our positions as to wait for the coming dip ... crash-boom-bang.

Next week KLCI might see some short technical rebound. As traders, I prefer to see it as merely technical rebound and willing to clear most of my positions again. Otherwise, nothing to buy... stay sideline to watch and to be safe.

Have a nice weekend and put market aside as we are seeing EPL kicking off tonight!! Yeah ...

Economic Collapse : Why it might happen in 2011



TEH