One-Minute Flash Crash

Ok, I was not going to post anything this evening because the currencies I have spoken about from the last few posts are just about the same other than the Euro which is a bit off, right near 130. So the Dow had a great day today up 152 points to close out the day and the currencies sat dormant just about all day long. You could say the same for the metals, once NY opened we got the usual daily price capping affair.

The title of my last post was INEVITABLE with charts of the Dow and S&P500. I spoke of how it appears these 2 markets are headed to major milestones 15000 Dow and 1600 S&P. Do we really need to justify why? The charts just say so and the funny money is in charge! I keep saying that stocks are now a FOOL'S Game and this is why I write to you this evening. Please, if you missed it please look at the following chart-5 minute chart on the Dow Jones

That 140+point plunge took place within 1 minutes time based on a rumor on a FAKE tweet that there was 2 explosions at the White House and Obama had been injured. At the end of the day, if this story was not mentioned, you would never have even known about this FlashCrash. I wonder how much money was lost in that one minute today, I can tell you it was boatloads. This is what our markets have become, someone hacks into a social media account and disrupts the FREELY traded markets.

I would like to point out that the price of GOLD hardly budged nor did the currencies really react. I am pointing this out because it shows how all the money is one way in stocks and it should really get you thinking how fast this market can crash when the wheels start coming off, and it will at some point. Even with today's tumble and the quick recovery I am still short term bullish on the Equity markets for them to reach those milestone numbers. Will the currencies wake from their slumber in the next 24 hours? I am not sure but I do know that the risk is minimal especially in the CAD, just look at the charts and you should know where to buy and place your stop losses.

Good Night
Martin