Friday, March 23, 2012
- Apple Didn't "Flash Crash"
Sometimes the news shouldn't be left to newsmen. This particular brain dead drone is the same guy who telegraphed his political sentiments to us when he told us all that the markets were rallying because they were hopeful of an Obama reelection. (Everyone I know laughs out loud when I repeat that story.)
He obviously doesn't have even a CNBC newsman's understanding of how markets really work. If you ask me I think he would probably be better suited to the food service, or housekeeping industries. So let me correct him. Apply did not 'flash crash'. A flash crash is a very specific kind of failure, but to this idiot it's like "A bubble". He thinks those words don't actually have a real meaning.
What really happened with Apple was a 'bad print' otherwise referred to as a 'fat finger'. It wasn't driven by program trading, or as a result of some systemic HF trading risk, like an actual 'flash crash". It was just someone making a mistake. They fixed it and Apple went right back to trading.
This is one of those circumstances where the guy should have kept his mouth shut and left us wondering if he was an idiot, instead of opening and removing all doubt.