The SEC says a "large fundamental trader" caused May's 10% shares crash with a fast-acting computer programme
May's 700 point sudden share crash in the US was caused by a single trader's computer program, according to the US trading watchdog the Securities and Exchange Commission (SEC).
The so-called "flash crash" on 6 May saw the Dow Jones index fall 10% in just
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By Gareth Soloway on September 28th, 2010 12:10pm Eastern Time
Just as the markets were hitting their lows of the day at $113.18 on the SPDR S&P 500 ETF (NYSE:SPY), the 'powers' that be started to drop the U.S. Dollar quickly. The PowerShares DB US Dollar Index Bullish (NYSE:UUP) dropped from $23.07 all the way to $22.87. The coordination of this drop makes one think, there is more at work here than just normal market activity. As the Dollar collapsed, the markets rallied sharply higher off the lows and have since turned slightly positive. An ugly day was avoided and the markets are sitting pretty. To gain more insight, analysis, guidance, swing trades and education, join the Research Center.
Gareth Soloway
Chief Market Strategist
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