Opening Cross: Spotting the Right Opportunity
While the Dow's bungee-like escapade probably has more to do with a problem system than a systemic problem, it demonstrates the underlying uncertainty and fragility that still has the financial markets afraid to close their eyes and checking under their beds for a recessionary boogeyman.
Whether Friday's freak fall and rebound was the result of "fat-finger" error, an erratic high-frequency algorithm, or market manipulation, it is likely to re-open the debate around high-frequency trading, as the
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