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A Possible ‘Crash’ Scenario to Consider!

March 29, 2016

Our markets are now mostly electronic and all trading computers are mostly interconnected with electronic exchanges globally. This means that HFT strategies can levitate markets UP and these same high-speed computers (using algorithms) can crash prices on our electronic exchanges DOWN. Our supply and demand for a commodity or a trading asset is not important today as Algo’s and our high speed computers actually do most of our trading. Today, some 70% of all trading volume happens as a result of our HFT machines and their internal Algo’s. Today, we live with a new trading technology which now operates in cyberspace. The ‘market-makers’ are now mostly Algo’s and the trading is also via Algo’s. Watch the following videos for additional understanding of what is now prevalent in all our markets!

  1. Video which explains HFT (excellent):
  2. CNN Money video on HFT (good):
  3. A TED video on Algo’s (excellent):

The above three videos reveal how our Wall Street traders continually monitor, manipulate, and rig our markets. Markets can now be rigged so as the Dow Index (or a similar index) goes up continually irrespective of what is actually happening within our real supply/demand markets. Oil prices can be manipulated UP and/or DOWN merely by computer Algo’s. This same technology can be used to crash our electronic/cyber markets at near the speed of light. HFT can be used to create a DOWN market even if this event is not warranted by our normal supply/demand events. Algo’s and machines now rule over our markets and real human beings mostly WATCH. My sense is that the next crash in our electronic markets will happen soon and this will be accomplished with an ALGORITHM. This algorithm can be programmed to create this crash as we now live within cyberspace where algo’s rule over our markets!

Give this scenario some reflection as I sense that a crash of our electronic markets could happen any day now. Delays could continue if our Central Banks can overrule contrarian crash algorithms. Circuit breakers can also be used by our authorities to prevent any major crash of all our markets. But the technology is now here (using algorithms) to crash our cyber markets via a super flash crash. It could start on the Chinese electronic exchanges, the Japanese electronic exchanges, the London electronic exchanges or the American electronic exchanges. We have the means (via coded algorithms) to crash these electronic markets in one day. Once this happens our traders will become aware of how ephemeral our markets really are. Pictures (via the above videos) reveal how events will likely happen in the very near future. Watch and prepare! I am:

P.S. Watch the cyber price of gold and silver (after we witness the next flash crash). The ‘paper’ gold/silver market (which has artificially suppressed these prices) could collapse (as the supply of real gold in the vaults disappears) and then the rigging of these precious metals will be over.

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