This page has been archived and commenting is disabled.

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.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Tue, 05/03/2011 - 10:59 | 1233924 LRC Fan
LRC Fan's picture

This is certainly Bullish

-Bob Pisani

Tue, 05/03/2011 - 10:59 | 1233936 RobotTrader
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.

Tue, 05/03/2011 - 11:00 | 1233946 Internet Tough Guy
Internet Tough Guy's picture

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

Tue, 05/03/2011 - 11:11 | 1233970 TruthInSunshine
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:

Tue, 05/03/2011 - 11:13 | 1234005 countryboy42
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.

Tue, 05/03/2011 - 11:18 | 1234032 rocker
rocker's picture

I am beginning to think Robo works for the Morgue, Godman Shafts or Shity Bank.  Take your pick.

Tue, 05/03/2011 - 11:11 | 1233993 redpill
redpill's picture

How's your favorite TZOO doing?

Tue, 05/03/2011 - 11:14 | 1234015 firstdivision
firstdivision's picture

TZOO is actually flat on the day ATM. 

Tue, 05/03/2011 - 11:18 | 1234026 redpill
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.

Tue, 05/03/2011 - 11:19 | 1234038 firstdivision
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. 

Tue, 05/03/2011 - 11:22 | 1234041 redpill
redpill's picture

I thought they were Ukranian hookers?

Tue, 05/03/2011 - 11:29 | 1234068 firstdivision
firstdivision's picture

Tomato, tomoto

Tue, 05/03/2011 - 11:27 | 1234069 firstdivision
firstdivision's picture

Tomato, tomoto

Tue, 05/03/2011 - 11:12 | 1234002 firstdivision
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.

Tue, 05/03/2011 - 11:34 | 1234092 Smiddywesson
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.

Tue, 05/03/2011 - 10:59 | 1233938 Eduardo
Eduardo's picture

you see a flash crash I see a V shape recovery 

Tue, 05/03/2011 - 11:03 | 1233947 Boilermaker
Boilermaker's picture

I see mustard seeds and green chutes.

Tue, 05/03/2011 - 11:10 | 1233988 Hephasteus
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.

Tue, 05/03/2011 - 11:09 | 1233997 Boilermaker
Boilermaker's picture

Well, sure, there's that too.

Tue, 05/03/2011 - 11:02 | 1233940 Boilermaker
Boilermaker's picture

Well, every 'investment' has 'risks'.

Tue, 05/03/2011 - 11:00 | 1233945 Bill Bogus
Bill Bogus's picture

BTFD bitchez!

Tue, 05/03/2011 - 11:04 | 1233955 Internet Tough Guy
Internet Tough Guy's picture

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

Tue, 05/03/2011 - 11:07 | 1233969 Long-John-Silver
Long-John-Silver's picture

They are busy loading armored cars.

Tue, 05/03/2011 - 11:07 | 1233985 tmosley
tmosley's picture

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

Tue, 05/03/2011 - 11:08 | 1233991 smeagol
smeagol's picture

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

Tue, 05/03/2011 - 11:14 | 1234009 Internet Tough Guy
Internet Tough Guy's picture

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

Tue, 05/03/2011 - 11:19 | 1234029 tmosley
tmosley's picture

Our pal Boromir made sure that wouldn't be a problem:

http://www.youtube.com/watch?v=-EWfllJ6kNw

Tue, 05/03/2011 - 11:06 | 1233977 gmrpeabody
gmrpeabody's picture

+++

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

Tue, 05/03/2011 - 11:01 | 1233949 Cdad
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.

 

Tue, 05/03/2011 - 11:06 | 1233966 Cdad
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.

Tue, 05/03/2011 - 11:08 | 1233978 Cdad
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."

Tue, 05/03/2011 - 11:10 | 1233999 Cdad
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.

Tue, 05/03/2011 - 22:05 | 1236676 StychoKiller
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!

Tue, 05/03/2011 - 12:24 | 1234459 moldygoat
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

http://online.wsj.com/article/SB10001424052748704709304576124502351634690.html

Tue, 05/03/2011 - 11:02 | 1233954 Global Hunter
Global Hunter's picture

Bust those trades below say 5.75 and problem solved.

Tue, 05/03/2011 - 11:05 | 1233957 firstdivision
firstdivision's picture

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

Tue, 05/03/2011 - 11:05 | 1233961 TruthInSunshine
TruthInSunshine's picture

What's not to trust about these exchanges?

Name one thing?

/s

 

Tue, 05/03/2011 - 11:03 | 1233962 Jim B
Jim B's picture

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

Tue, 05/03/2011 - 11:07 | 1233968 firstdivision
firstdivision's picture

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

Tue, 05/03/2011 - 11:03 | 1233964 Quinvarius
Quinvarius's picture

The Etrade baby saved a bundle using stops.

Tue, 05/03/2011 - 11:03 | 1233965 Boilermaker
Boilermaker's picture

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

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

Tue, 05/03/2011 - 11:07 | 1233971 mynhair
mynhair's picture

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

Tue, 05/03/2011 - 11:09 | 1233980 Long-John-Silver
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.

Tue, 05/03/2011 - 11:07 | 1233983 writingsonthewall
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...

Tue, 05/03/2011 - 11:22 | 1234025 gmrpeabody
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...

http://www.youtube.com/watch?v=VDW0ZnZxjn4

Tue, 05/03/2011 - 11:51 | 1234199 Alex Kintner
Alex Kintner's picture

+2 for the Swab explanation.

Tue, 05/03/2011 - 11:09 | 1233986 gordengeko
gordengeko's picture

Algo's practicing on shit stocks.

Tue, 05/03/2011 - 11:18 | 1234033 earlthepearl
earlthepearl's picture

Bingo,

Tue, 05/03/2011 - 11:21 | 1234035 Hephasteus
Hephasteus's picture

China's e-learning leader. It's probably a western ponzi parked in china that somoene wanted out of.

Tue, 05/03/2011 - 14:34 | 1235181 d_7878
d_7878's picture

yes

Tue, 05/03/2011 - 11:21 | 1234034 RobotTrader
RobotTrader's picture

Like I said, I don't trade the mo-mo stocks.  I only point them out to demonstrate the incredible strength of the overall tape since the 2009 lows.

If I were 25 years old, I might have the guts to chase those high-grade hookers, but for now, I'll stay with the low volatility plays for right now.

In last weekend's IBD, the large cap growth/small cap growth ratio was near an annual low, so the big caps should start outperforming any day now.

You can already see it in the recent moves in names I own like INTC and JNJ.

Tue, 05/03/2011 - 11:38 | 1234115 Internet Tough Guy
Internet Tough Guy's picture

You don't have the guts to trade your pumps? Poor momofader, didn't you learn anything in that east European boiler room?

Tue, 05/03/2011 - 11:24 | 1234047 Josh Randall
Josh Randall's picture

These folks at AMBO seem TBTF, time to pass the hat folks

Tue, 05/03/2011 - 14:28 | 1235127 ThirdCoastSurfer
ThirdCoastSurfer's picture

ZH is so correct to point out that the continuation of these events on an increasing and now almost daily basis is a clear warning flag of a deeper structural issue that in the years to come that will lead the experts and pundits to ask why more attention was not paid.

There should be calls for congressional hearings right now, not after its' meaning is known.  

Tue, 05/03/2011 - 14:32 | 1235171 d_7878
d_7878's picture

Great, more broken trades. Next time I have a trade go south I am telling my broker it was an erroneous trade and to just cancel it. Who exactly qualifies for erroneous trade status and how do I sign up.

Do NOT follow this link or you will be banned from the site!