Still chasing US equities up and down each day? Buying-and-holding large caps for their 'safety'? Reassured that money-on-the-sidelines will take us higher? Waiting for the Great Rotation? Perhaps the following post-mortem from Nanex on today's flash crash in the stock not of some microcap but of nearly $300 billion market cap behemoth Google, will reduce just a little of the fervor over what so many call the stock 'market' and its 'free' and 'efficient' nature.
Morningstar submits: Mining for Lessons After Flash CrashFour ETF industry executives revealed the outcomes of post-flash-crash, industrywide collaboration among competitors in a panel discussion Thursday at the Morningstar ETF Invest Conference. While the flash crash itself was tumultuous, they agreed, it facilitated improved communications between the companies and laid the groundwork for the controls that will help prevent future flash crashes.
While we eagerly await for the SEC to retract its official 104 page report summarizing the "Findings regarding the market events of May 6, 2010" in light of "recent developments", and as we follow the shift in the official narrative to the outright bizarre, in which the entire Flash Crash is now blamed on just one man (as opposed to just Waddell & Reed as per the previous narrative), we learn that the latest scapegoat for a broken, fragmented and manipulated market, Navinder Sarao, is not quite so eager to
Morningstar submits: By Paul JusticeAssigning blame for last Thursday's "Flash Crash" will take considerable resources and many months, and the conclusion is unlikely to single out a primary culprit. A probable conclusion is that the momentary lapse in the market's collective reason is a symptom of a systematic gap to accommodate the increasingly complex nature of securities markets.
AP - NEW RULES FOR CANCELING TRADES: The Securities and Exchange Commission is putting forward proposed new rules spelling out when and at what prices stock trades would be canceled, a response to last month's "flash crash."