Flash Crash or Rogue Wave

Much has been said in the media about the “supposedly” Flash Crash of 5/6/10. In my opinion, it was simply a wave of motion. They happen every day in the oceans and in the markets. When they are extreme, they are labeled “rogue” or “flash.” Both labels invoke mystery. Not so!

Rogue Waves have happened before and they will happen again when the conditions are present. And so will a Flash Crash. In the old nautical days, captains were loath to say that an “unknown” wave sunk their ship as that would infer that the Capitan didn’t know his job.

Welcome to the twenty-first century. Quants! What!!! now define waves of motion in the stock market. (Old sea captains would be swirling in their graves!) These guys/gals have no idea what happened, so they call it a “Flash Crash.” An aberration. Never to happen again. We can legislate it!

Actually, it was just the Laws of Physics moving stocks/waves in a natural rhythm. Successful students that have taken the Wolfe Wave Course can see these mysterious “Rogue Waves”, “Flash Crashes”, many leagues, many days, in advance!

I extend this invitation to you, to become a Wolfe Wave Practitioner and to see the market in a very different way. Naturally.