I came across this video today where you hear live traders and their reaction on May 6th, which of course is the day of the Flash Crash. It’s always useful and interesting to go back and revisit trader’s reactions on monumental trading events such as this to see if you can learn how to react or not to reach in the future. If you’ve been a reader here at zentrader for some time you’ll remember that my timing signal issued a sell on the markets on April 29th, and I got short the indexes after the close on that day.

On the actual day of the crash I remember leaving to take my wife out to lunch that day because it was her birthday and when I left at 2pm eastern the markets were falling, but given that I was short I left my positions alone so they can do their magic. By the time I got to Starbucks and hour later and opened my laptop to see the carnage, I exited my positions as quickly as I could. The Dow had bounced a couple of hundred points so I did miss the low, but I have very fond memories of the Flash Crash. 

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6 Responses to “Remembering The Flash Crash”

  1. Tweets that mention Remembering The Flash Crash | zentrader.ca | stock market blog -- Topsy.com Says:

    […] This post was mentioned on Twitter by jeff pierce, Intuitive Trader. Intuitive Trader said: RT @zentrader: Remembering The Flash Crash http://bit.ly/e9mXBQ << which followed a diamond top in April 2010. now looks like a replica. […]

  2. jeremy Says:

    Have you heard the ‘traders audio’ clip of the crash live.
    Awesome good fun, seriously who listens to market radio?

    here is a clip if you are interested – good stuff starts about a minute in.


    The guys voice sums up how dramatic a move it was pretty well I think.



  3. abdul Says:

    Awesome video. Great job, bravo and thank you.

  4. abdul Says:

    Today, the market found a good excuse to tank. This time, they blame on the Egyptian crisis. Your indicators for a correction is timely Jeff. This will give traders apportunities to enter again. I believe, the sentiment after this correction is still bullish and the Dow will enter the 12000 again despite austerity measures in europe. This year trading will mostly focus on US and Japan market.

  5. jeff pierce Says:

    monday could be our next sell signal. failure to make new highs on nasdaq is telling

  6. abdul Says:

    That include the Dow too, both tank parabolic. I have no desire to enter the first retrace. Got to wait for the parabolic energy to weaken considerably before I even consider to enter again. Those Dictators in the middle-east, their heaven on earth days are numbered. Their stock market took a beating too.

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