Physicists at the University of Miami have released a study that focuses on “fractures” in the stock market. A fracture occurs when the price of a stock moves up or down in less than a second, causing instabilities.
A link between fractures and stock market crashes was found – before the September 2008 and May 2010 crashes.
For those of you who don’t enjoy physics and just want to make money this is a good career choice [developing algorithms for traders etc.]
Article:
http://www.newscientist.com/article/dn21455-stock-trading-fractures-may-warn-…
Paper:
http://arxiv.org/abs/1202.1448
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