The flash crashes will continue until market confidence returns (this is the second one in Apple today). Who is even trading this insanity anymore? This entire market is about to break hard: any piece of bad news can topple Apple like a house of cards, and that, as we noted earlier, will take the entire market with it. Oh yes, this is supposedly the second most liquid name in the market!The Real Effect
This demonstrates the general volatility underlying the markets at this point. When individuals and corporations are committing rampant fraud, politicians are looking the other way and Central Banks are pumping the economy like a doctor trying to bring a corpse back to life is it any surprise when common sense seems to have taken a dirt nap?
After being repeatedly correct in the month of August, we failed to anticipate the absolute insanity of the front running HFTs hell-bent on keeping the game going as they extended the ramp job into the stratosphere and proclaimed a new "bull market". Yeah right. Just remember the short term is much more volatile than the long term picture.
With consumer confidence collapsing again, the housing market in shambles, and gold making aggressive moves, the curtain isn't all that far away for many individuals as they realize the folly of their blind faith in their leaders.
Look for all sort of shenanigans as the rats become desperate to keep the ship upright, but things continue unraveling in the bond market, the dollar hits the death cross, stocks, corporate bonds, pensions and all things Americana as the people realize they've been had.
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