NEW YORK (Reuters) - In less than one hour on Tuesday, the U.S. stock market surged by 4 percent -- for no apparent reason.
The last hour of trading was the most volatile final hour in two months -- and it occurred at a speed that frightens many, from experienced hedge-fund managers to mom-and-pop investors.
The late-day "melt-up" that pushed the S&P 500 index out of bear-market territory might be construed as good news. But it brings back echoes of the "flash crash" that saw markets dive by several hundred points in a matter of minutes, and it's a big reason many are staying away from the market.
"Everyone is scared in both ways -- the shorts are scared, the longs are scared, everyone is scared. The high-net-worth investor is very, very scared," said Stephen Solaka, managing partner at
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BLAST-OFF AT 1,100
The S&P climbed steadily between 3 p.m. and 3:30 p.m., but once it broke through 1,100, the gains accelerated, as the average rose 1 percent in the span between 3:39 p.m. and 3:45 p.m.
For Joe Donohue, money manager at Dimension Trading in Red Bank, New Jersey, the speed of the reversal was a classic sign of automated algorithmic trading.
"I didn't know the move was for real until about 3:40 to 3:45, when my machine just lit up green like a Christmas tree," he said. "That's when you know there's algo buying dictating the market. It certainly wasn't individual buyers."
http://ca.news.yahoo.com/u-stocks-massive-melt-fans-investor-fears-201253607.html
I have always said also, that ETF's were created just for this occasion,manipulate a whole sector with the push of one button. No need to go out and buy each individual stock. They are good with this orchestrated scam, That's for sure, and the HFT/Algos are the speed needed for these monster moves....... I have also read, after 2008 crash, that the elite DID NOT get all the working mans money, so this will be round 2 and they want it all!!!! Real/smart money is not in this scam of a market at all, Just HFTing machines run by Robo Algos...........
Realist - Everybody in America is soft, and hates conflict. The cure for this, both in politics and social life, is the same -- hardihood. Give them raw truth.
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