Flash Crash

Whenever there's a report of a flash crash I try to immdiately follow it up, one because they are getting more brazen and more abundant and even happening on the major averages and the second part of that is to reveal the nature of them so you know what to do if you're hit by one and chances are, when the averages got hit, you were a part of that.

Today MHR was hit, here's the charts and the nature of these have been pretty consistient.

 The first chart I'm showing you is the daily because I can't scale the intraday to get all of the crash. As you can see, the stock lost about 50% in the F.C.

This has been the consistent nature of them, 3C 1 minute which in the blue form is fast enough to follow the action (although I'd love to watch it on a tick basis) has always shown the same thing, accumulation a the bottom and the stock recovers most of what it lost pretty quickly. This is why I've said not to panic in this situation, you're likely to sell at the bottom when it seems they are just stealing shares, but their stealing them to flip, so once there's some recovery, I'd be looking for an exit. This is ANOTHER reason not to have stop or limit orders on the books, but rather keep them mental. Anyone on the books lost their shares.

There will continue to be hearings on these events , but don't expect the SEC to do anything about them anytime soon.