Not Another Flash-Crash…Yet: Trader

As reported by MarketWatch, so far there is no sign of a “flash-crash” like the one that rattled the markets worldwide more than one year ago on May 6, 2010.

At least that’s the view of Joe Saluzzi, co-head of equity trading for brokerage firm Themis Trading, after U.S. and European stocks dropped significantly Thursday.

The Dow Jones Industrial Average fell 436  points, or 3.7% to 11,456  in afternoon trading.

On the day of the flash-crash, the Dow Jones suddenly dropped nearly 1,000 points and at one point that afternoon, it dropped 481 points in six minutes and then recovered 502 points just 10 minutes later.

“Right now I see orderly selling. Nothing nefarious going on, at least not yet,” said Saluzzi, who has completed several reports analyzing the ‘flash-crash.’ “Macro picture is still there. People are nervous about the unemployment numbers coming out tomorrow.”

However, Saluzzi insisted that it could still happen, insisting that the Securities and Exchange Commission isn’t prepared to handle future similar situations. He added that the markets sell-off in the morning Thursday followed a similar pattern to that of what happened in the morning of May 6 2010.

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