The best phrase to sum up the LQD “flash crash” this morning is, “Nothing to see here move along”. These happenings should not be happening, yet they happen just about every day now. Apple’s crash a week ago was very similar to LQD, they both fell like a rock as soon as the market opened over 10 points knocking out buy orders and stops like they were dominoes. Clearly the regulators have no clue in hell what is going on inside our markets.
These crashes are only going to get worse before they get better, it will happen to a huge component of an index causing a cascade affect across all equities. ETF’s have tangled our markets up in a web of dominoes, all it takes is one domino to fall over and the whole interconnected machine falls apart before our eyes. This will happen in a matter of second and minutes, not hours and days.
The exchanges are cancelling thousands of trades in the LQD, wheww that was close. How about you do something to prevent these crashes so you we don’t have to worry about a trading account blowing up in seconds because some algo fucked up and dumped its holdings. These things need to monitored and regulated before it is to late. Or is it already to late?