•  
• Tweet
•  
•        Print
•  
•         Track Keywords
•  
• 

Komfie Manalo, Opalesque Asia:

A brief flash crash on Monday saw the markets wiping out their entire January gains but one hedge fund made gains. The Dow Jones industrial average plunged nearly 1,600 while the S&P 500 Index sank 4.1 percent to wipe out its January gains and turned lower on the year. An attributing factor to the flash crash was autonomous computer driven trading strategies that where geared to the low volatility seen over the recent year.

Trading volume was almost double the 30-day average. The Japanese Nikkei fell 4.73% on Tuesday's market close at 21,610.24.

However, Australia-based quantmental and behavioral science focused hedge fund that specializes in global equities Goldsky Asset Management rose 0.34% overnight.

Goldsky founder and President Ken Grace, said in a statement, "The Goldsky strategy once again demonstrated its robustness as volatility returns to global markets, and shows the dangers of computer-driven strategies trading autonomously without human intervention and oversight. Our long positions were protected by our option protection and our short positioned gained significantly as markets fell."

CNBC's Jim Cramer said in his program Mad Money, "The market got phony again. It's a shame. It can't handle the volume and it can't handle this ......................

To view our full article Click here