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Black Monday 2.0: The Next Machine-Driven Meltdown

Black Monday 2.0: The Next Machine-Driven Meltdown

Authord by Ben Levisohn via Barrons,

In the rise of computer-driven trading, some hear echoes of the stock market’s 1987 crash. Beware the feedback loop...

Black Monday. Although the event to which those two words refer occurred 30 years ago, they still carry the weight of that day—Oct. 19, 1987—when the Dow Jones Industrial Average shed nearly a quarter of its value in wave after wave of selling.

Prepare For A Surge In Volume: Russell Rebalance Day Is Here

Prepare For A Surge In Volume: Russell Rebalance Day Is Here

Welcome to the one year anniversary of the Brexit vote. Welcome also to the annual Russell rebalance, traditionally one of the busiest trading days of the year: according to Bloomberg, last year's rebalance helped propel a near record turnover of over 15 billion shares, as a result of the $8.5 trillion in stocks linked to the various Russell indices, many of which will be forced to find new owners after today's index recomposition. In fact, in four of the last five years, reconstitution day ranked in the 10 busiest trading sessions.