From $6 To $1 In Milliseconds: AMBO Is First Flash Crash Du Jour

Tyler Durden's picture

The Johnny Fived and persistently broken market continues to remind about itself, 3 days ahead of the May 6 flash crash anniversary. Today's first victim: anyone who had 20% or greater stop loss triggers in Ambow Education Holding. The stock plunged from over $6 to just over $1 in millisecond. Courtesy of Nanex, we bring you the chart of yet another algo gone apeshit which in 3 seconds traded a few thousands shares on both the Nasdaq and Pacific Exchange.

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LRC Fan's picture

This is certainly Bullish

-Bob Pisani

RobotTrader's picture

Gold stocks continue to get flash crashed daily.

While GM is up 7 out of the last 9 days.

And Mastercard is making new highs.....

And, of course, retail stocks are totally unfazed and untouched from any sort of volatility.

And Dow Utilities are charging to new, 2-year highs again today.

All the dividend paying stocks have done extremely well for me, flash crashes notwithstanding.

Internet Tough Guy's picture

Momofader, I miss your TZOO and LULU pumps. They were the ultimate inflation hedges, right?

TruthInSunshine's picture

RoboRetard rejiggers his calls by delisting those that performed badly, even to the point of non-compliance and bankruptcy, just like the real exchanges.

Survivorship bias, ala RoboRetard.


OT: Great work, Tim & Bernank, you've managed to sink the USD even lower against the currency of a ghost economy:

countryboy42's picture

Shhh, don't tell Robo that he signed up for a PRACTICE trading account. He is really only playing the FarmVille version of the stock market.

redpill's picture

How's your favorite TZOO doing?

firstdivision's picture

TZOO is actually flat on the day ATM. 

redpill's picture

And down 20% over the last 9 days.  Isn't that special!  Somehow that won't get mentioned by a certain RoboTrader.

firstdivision's picture

Oh for the last few days, momo's have been getting killed.  Traders are closing out and picking out their "Russian models" that they are going to the Hamptons with. 

firstdivision's picture

Thanks for pointing out that the market is pricing in a contraction.  Defensive stocks seeing buying while momo's are left to shiver in the cold POMO-less environment this summer.

Smiddywesson's picture

Does anyone see the irony in reporting all the major credit card companies posting record Q1 profits as a BULLISH sign for the economy?

People spending money is a bullish sign, people spending money they don't have in run away inflationary times is a sign people are bunkering before the storm.

Eduardo's picture

you see a flash crash I see a V shape recovery 

Boilermaker's picture

I see mustard seeds and green chutes.

Hephasteus's picture

I see 2000 computers one cup. If the LRB's don't want to eat it they pass it to anyone with stops losses.

Boilermaker's picture

Well, sure, there's that too.

Boilermaker's picture

Well, every 'investment' has 'risks'.

Internet Tough Guy's picture

Kind of quiet without the silverbugs around. Like the circus blew town.

Long-John-Silver's picture

They are busy loading armored cars.

tmosley's picture

No silver topics.  Just more and more signs pointing to systemic toxicity and fast approaching death.

smeagol's picture

Silver bugs still here, and this silver bug is buying this dip in the $43s with both hands

Internet Tough Guy's picture

You should know better; there is only one ring to rule them.

gmrpeabody's picture


Too funny..., Jack be nimble, Jack be quick!

Cdad's picture

I am hearing that Mary Schapiro of the SEC is just about done meeting with J. Dimon and L. Blanfein about what exchange rules she can ignore and which ones she can enforce.  So by extension, I'm sure this flash crash [and the various flash dashes we are seeing too] means absolutely nothing....even as Chinese communists hack major corporations and stock exchanges.  I'm sure everything is just fine, and we should probably all by E minis as a way of expressing our confidence in the system.


Cdad's picture

I also am hearing that Mary Schapiro is just about done figuring out what really happened last year during the May 6 flash crash.  We all just need to give her more time, be patient, and ignore the wizard behind the curtain arbitraging to death equity positions.

Cdad's picture

I'm also guessing that as soon as Duncan Niederauer is done selling the floor of the NYSE, many, many more things will become clear about just who is trading stocks like AMBO for pennies when the shares are priced in dollars.  Holders of stocks like AMBO or funds like IWM should just understand that these prints don't mean anything, and everything is just fine despite rumors of the wizard behind the curtain having a severe "cold."

Cdad's picture

I'm also pretty sure that High Frequency Traders have NOTHING to do with things like this, and folks should understand the importance of liquidity providers.  After all, with 80% of all trades coming from these bots, we had better just let them do whatever they like because if we don't, they will nuke the system.  The fact that HFTs constantly post perfect trading days, weeks, months, and years should not cause people to wonder if the system is rigged by such entities again because we don't want to anger the wizard behind the curtain because he is not feeling well just now.

StychoKiller's picture

Well, I'm guessing that the HFT droids are getting spring fever and want to be let out of the NYSE basements in order to frolic with the bunnies and Unicorns, while munching on the plentiful supply of skittles!

moldygoat's picture

even as Chinese communists hack major corporations and stock exchanges

I am sure this is the reason NASDAQ is trying to buy NYSE, to ensure it gets hacked!

What better way to explain away the ponzi collapse.


Hackers penetrate Nasdaq

Global Hunter's picture

Bust those trades below say 5.75 and problem solved.

firstdivision's picture

P = 1/ [# of algos trading]∑[D(1+s)^n]/[(1+r)^n]

TruthInSunshine's picture

What's not to trust about these exchanges?

Name one thing?



Jim B's picture

If the trades are cancelled, did it really even happen?

firstdivision's picture

If a stock is not worth anything to begin with, is the price fall even an event?

Quinvarius's picture

The Etrade baby saved a bundle using stops.

Boilermaker's picture

Like airfares that change by $1,000 by the time you's a "fluid and dynamic price" least that's what Continental told me.

You're just 'unlucky' if you got raped.  That's all.

mynhair's picture

Flash crash GPL, dammit!  Hit my 2.83 bid....

Long-John-Silver's picture

It's all just 1's and 0's after all. You don't even get paper and ink these days.

writingsonthewall's picture

Are these flash crashes merely 'fake passes' before the quaterback actually throws the ball into the end zone?

Did they happen before 2008? - or is it we're just noticing them more?


When does a flash crash become an actual crash?

I know we all blame the trading bots - but why does the crash stop? Do they all have the same stop loss at the same levels? - or is the bottom of the crash an indicator of the lowest valuation someone out there has of the stock in question?


I think these flash crashes are very interesting - I was lucky to see the Dow flash crash last year 'live' - which considering I'm in a different time zone was quite some achievement and luck.

I thought it was all over as the Dow plummeted - but what is stopping the total collapse and buying the shares back? - even before the exchange cancels the trades - someone or something is buying them up - otherwise there would be no flash return to pre crash levels and only the  cancelling of the trades would reverse the crash - which would take a lot longer.


If the programs themselves are buying back - then does this mean stock markets can never fail? - I mean there would always be electronic buyers after a fall of such magnitude - and we all know why not allowing things to fail is a bad thing...

gmrpeabody's picture

I was also watching live, with my wife on the phone, I am telling her that it's down 300 pts, no wait.., I think that's 350 pts.., wait, it's saying we're down 450 pts.

It was truly hilarious. I was actually holding a few thousand shares of the DOG, and they actually CRASHED (hitting my stop along the way) and gave all the profit I thought i had made to some algo's account instead of mine. Wait a second..., that's why I had the DOG, in case of a sudden fall in the market. Too funny..., I lose (again).

Here's how it was explained to be by Schwab...

Alex Kintner's picture

+2 for the Swab explanation.

gordengeko's picture

Algo's practicing on shit stocks.