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	<title> &#187; &#8220;flash crash&#8221; biases</title>
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	<description>Trading Psychology, the Thinking Man&#039;s Market Psychology</description>
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		<title>The ? They Aren&#8217;t Asking about &#8220;Flash Crash&#8221;</title>
		<link>http://traderpsyches.com/the-they-arent-asking-about-flash-crash</link>
		<comments>http://traderpsyches.com/the-they-arent-asking-about-flash-crash#comments</comments>
		<pubDate>Tue, 11 May 2010 19:56:48 +0000</pubDate>
		<dc:creator>DKS</dc:creator>
				<category><![CDATA[Markets]]></category>
		<category><![CDATA["flash crash" biases]]></category>

		<guid isPermaLink="false">http://traderpsyches.com/?p=2451</guid>
		<description><![CDATA[1. Was it purposeful? 2. Were specific orders entered that would &#8220;sweep the book&#8221; in PG, MMM and Accenture? Why those stocks? 3. Why 2:40 pm? Isn&#8217;t that a suspicious time in terms of margin calls from clearing houses and expiration of limit down rules @ NYSE? 4. What kind of requirements should there be [...]]]></description>
			<content:encoded><![CDATA[<p>1. Was it purposeful?</p>
<p>2. Were specific orders entered that would &#8220;sweep the book&#8221; in PG,  MMM and Accenture? Why those stocks?</p>
<p>3. Why 2:40 pm? Isn&#8217;t that a suspicious time in terms of margin calls  from clearing houses and expiration of limit down rules @ NYSE?</p>
<p>4. What kind of requirements should there be to be an exchange of any  kind &#8211; major or dark pool? 50 &#8211; do we really need 50 different  marketplaces? Isn&#8217;t that asking for trouble (see #1).</p>
<p>The SEC isn&#8217;t known for its immunity to the perceptual biases known  from behavioral finance. In fact, they are known for the opposite.</p>
<p>Congress isn&#8217;t known for its prescient thinking &#8230;</p>
<p>Who is going to ask this stuff?</p>
<p>&#8230;.oops add one more #5) Some high frequency firms supposedly pulled their orders&#8230; maybe the cause was a LACK of high frequency or at least a sudden shock to the balance. Given that there were apparently no bids in the three aforementioned stocks&#8230; that makes MORE sense!</p>
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