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Posted by on Jun 29, 2011 in Markets, TG Roundup

HFT Algos at it Again?

Predictions of crashes have little credibility with me. However, this one has some credibility. Zero-Hedge’s Tyler Durden (not his real name) thinks that a flash-crash of sorts could happen on Wall Street today or this week. He claims that yesterday’s bizarre options trades (honestly, I only understood some of what he was saying) by HFT algos could precipitate this. Today or not, the next crash will be brought to you by the financial “innovators” who made this world a better place because of their existence. 🙂

If the green line passes 200 for any extended period of time, we just may have conditions that are very to quite very reminiscent of the first flash crash. We will warn readers if we see any persistent quote stuffing/churning activity on the NYSE, whose poor Liquidity Replenishment Points just may not be able to take it.