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DXZ Flash Crash Detonates Entire Currency Complex

Tyler Durden's picture





 

And now, for that Friday night bomb, when nuking stocks has a tad too much of a Waddell and Reed 'amateur hour' aftertaste, the only alternative - destroy the entire currency market. If this crash in the DXY (seen below) had happened during regular hours, apparently driven not by the dollar but by DXY component EUR (there was no comparable move in other USD pairs), it would have created a complete market collapse. Luckily it happened an hour after close. Weekend collapse averted. And a quick glance at the other pairs shows that the GBP and CHF were solidly impacted as well.

EURUSD:

EURCHF:

And apparently the crash metastasized to the GBP as well.

At this point, who really cares anymore?

 


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Fri, 10/22/2010 - 21:30 | Link to Comment TheGoodDoctor
TheGoodDoctor's picture

Well with all these flash crashes it is hard to care about putting any money in the market.

Since I haven't done this before:

Gold Bitchez!

Silver x2 Bitchez!

Fri, 10/22/2010 - 21:51 | Link to Comment Spitzer
Spitzer's picture

congrats on the first time doc.

Fri, 10/22/2010 - 22:07 | Link to Comment TheGoodDoctor
TheGoodDoctor's picture

Is that what she said to you too Spitzer? Yow! (say it like Andrew Dice Clay)

PS Just messing with ya! :)

Fri, 10/22/2010 - 22:32 | Link to Comment flacon
Fri, 10/22/2010 - 23:47 | Link to Comment ATG
ATG's picture

Yes, Nice ICE not.

More to come Sunday?

Fri, 10/22/2010 - 23:55 | Link to Comment -1Delta
-1Delta's picture

ICE not CME not FX...

Sat, 10/23/2010 - 11:25 | Link to Comment luckylogger
luckylogger's picture

Did any of you guys have DX open at the time? I missed the 1st 15 seconds of the crash befor i could get my trade ladder opened. so I did not get to see the actual events leading up to this crash. However I used to trade TF all the time and have seen this action on ice several times. Here is my conspiracy theory :

one person or small group or big financial institution with all the money in the world, is greater than 90% of all bids on the future. Of course we as retail players only see 5-10 lines of bids and offers-- for enough money you can see all. Of course these are all fake and really make no difference to the retail guy. but if you know how many total their are and how many you have there... well duh !

So you are a big boy and find yourself in control of the bid side in something, so you start holding the bid up and quietly selling short. Remember all the other product have gone to bed or the bar so nobody is watching except for about 200 underwater retail guys.

Now you just pull the bid-- unreal the bid drops 2% in 2 seconds, aannot believe our good luck, now cover your shorts from all those freaking out retail players. give a couple dozen heart attacks out and head to the bar with your newfound riches.

Sat, 10/23/2010 - 12:58 | Link to Comment -1Delta
-1Delta's picture

you can move alot of markets with the DX, as it is not really that liquid, but everybody watches is/ algos linked etc

Fri, 10/22/2010 - 23:39 | Link to Comment High Plains Drifter
High Plains Drifter's picture

Say it like the Dice man?   

what?

 

face down , ass up !!!!!

Fri, 10/22/2010 - 22:55 | Link to Comment unum mountaineer
unum mountaineer's picture

That's what she said, That's what she said...HA!!!

Fri, 10/22/2010 - 23:23 | Link to Comment espirit
espirit's picture

I think this is so cool!  Just think what the Dow would do during open market hours. It will blow a load.

Sat, 10/23/2010 - 07:45 | Link to Comment French Frog
French Frog's picture

c'mon let's get real: anyone who has traded currencies for any length of time will realise that there is no way that a dxy move like that would only be reflected in a miserly move in the euro (and the wrong way too); it's just a 'bad' print, that's all !

Fri, 10/22/2010 - 21:51 | Link to Comment TheMonetaryRed
TheMonetaryRed's picture

Dear Doctor, 

We have colocated your gold. 

That is all. 

 

Yours as ever, 

Team Atari 

 

P.S. - Gold to $1700

Fri, 10/22/2010 - 22:15 | Link to Comment eigenvalue
eigenvalue's picture

Gold to $1700? When? You don't tell me that'll be 100 years later. This week PMs went through an utter bloodbath...

Fri, 10/22/2010 - 22:33 | Link to Comment TheMonetaryRed
TheMonetaryRed's picture

Before March, possibly by January. 

We'll get some panic first. 

Unless.....

Nah, goldsters have at least until January. 

Fri, 10/22/2010 - 23:48 | Link to Comment Spitzer
Spitzer's picture

I am still way up on my last 10 oz purchase on the last options expiration date of the summer douche bag.

I remember the so-called blood baths when the price went from 960 to 880 too.

So its not 1480 ? what a bloodbath,....

Sat, 10/23/2010 - 00:42 | Link to Comment tmosley
tmosley's picture

I know, right?  It gave up, like, two weeks of gains!  That must mean that it will never go up again.  It must, right?  

Right?

Sat, 10/23/2010 - 09:19 | Link to Comment Hephasteus
Hephasteus's picture

G20 vowed not to do currency devalutions. So they sold a few pounds of gold to make one last show.

Fri, 10/22/2010 - 21:51 | Link to Comment RobotTrader
RobotTrader's picture

Gold Bitchez?  Are you kidding?

If that thing crashed during COMEX hours, gold futures would have imploded by $200 in about 1 second.

And the overly-leveraged, F12 punching, momentum junkies with an outsized position to profit from a "dollar crash" would have immediately dumped GLD, SLV, GDX, etc. and would have flash crashed the entire sector.

Fri, 10/22/2010 - 21:57 | Link to Comment tmosley
tmosley's picture

Pfffft.

That's all I have to say to your ignorant comment.

Fri, 10/22/2010 - 22:59 | Link to Comment unum mountaineer
unum mountaineer's picture

that guy robo...if/when that happens, there's blood on the streets...think about it..think..now take it back.

Fri, 10/22/2010 - 21:59 | Link to Comment TheMonetaryRed
TheMonetaryRed's picture

Dear RoboTrader, 

All their base are belong to us. 

That is all. 

 

Your Friend,

Team Atari 

 

P.S. - Is that surge suppressor in pocket or are you happy?

P.P.S - For joke. 

Fri, 10/22/2010 - 22:25 | Link to Comment AccreditedEYE
AccreditedEYE's picture

+10 LMAO!!

Fri, 10/22/2010 - 22:20 | Link to Comment rocker
rocker's picture

Don't you mean expolded. Let's be real now.

Fri, 10/22/2010 - 22:47 | Link to Comment RobotTrader
RobotTrader's picture

If I'm reading Tyler's chart correctly.....

It was the EUR/USD that crashed.  Not USD/EUR.

Any flash crash in EUR/USD would have sent all "risk assets" into the gutter, including stocks, commodity currencies, and gold.

Fri, 10/22/2010 - 22:57 | Link to Comment tallystick
tallystick's picture

Kinda like 9/19/08? Remember that day?

Fri, 10/22/2010 - 23:25 | Link to Comment geminiRX
geminiRX's picture

I really enjoyed that month. Made a killing picking stuff up on the cheap....especially couer d'alene mines.

Fri, 10/22/2010 - 23:53 | Link to Comment ATG
ATG's picture

Yes, 36 cents before the reverse 10:1 split

Sat, 10/23/2010 - 00:03 | Link to Comment Spitzer
Spitzer's picture

Gold was up $25 during the flash crash, may 6 2010

Fri, 10/22/2010 - 22:59 | Link to Comment rocker
rocker's picture

Think Not !!!

Fri, 10/22/2010 - 23:25 | Link to Comment hamurobby
hamurobby's picture

Yes, and you should have out of the money puts in something to cover your assets.

Fri, 10/22/2010 - 23:28 | Link to Comment Hulk
Hulk's picture

anticipating that...not leveraged, eventually USD will be the risk asset and the flight will be into hard PM's...patience, patience, patience...

Fri, 10/22/2010 - 23:55 | Link to Comment ATG
ATG's picture

eventually

On a long enough timeline...

Fri, 10/22/2010 - 23:35 | Link to Comment -1Delta
-1Delta's picture

Exactly. but the dx futures crashed. which is a risk on trade. Odly tho my fx screen did NOTHING, but UUP and UDN went retard. this was bullshit as ice cancelled all the trades (i bot at 74/75). so lame

 

Fri, 10/22/2010 - 23:37 | Link to Comment flacon
flacon's picture

I trust FINVIZ more than I trust you. It was the US DOLLAR that crashed:

http://finviz.com/futures_charts.ashx?t=DX&p=m5

 

Sat, 10/23/2010 - 00:22 | Link to Comment Arkadaba
Arkadaba's picture

Flash crashing DX - damn missed it - Friday night and out for dinner - thanks for the chart.

Fri, 10/22/2010 - 23:45 | Link to Comment Orly
Orly's picture

Sorry, y'all.  Two hundred pip, with turnaround in less than sixty seconds does not a "crash" make.  It makes for a bad tick.

That's it.

It's a friggin' M1 chart.  Hello?

Sat, 10/23/2010 - 00:47 | Link to Comment tmosley
tmosley's picture

What part of "flash" don't you understand?

The flash crash in stocks signaled people to get out of the equities markets.  What do you think a flash crash in dollars will do?

Sat, 10/23/2010 - 01:37 | Link to Comment Spitzer
Spitzer's picture

The dollar is not looking good in the futures market right now

http://clearstation.etrade.com/cgi-bin/bbs?post_id=9331973&usernm=wndysrf

Sat, 10/23/2010 - 00:01 | Link to Comment Spitzer
Spitzer's picture

No

Because the Euro has the nuclear option of colluding with the BIS to form a new physical only gold gold market. That would fuck the COMEX, the LBMA and the GLD all at the same time.

The ECB marks all of its gold holdings to market on the asset side of its balance sheet. They float the price of gold. Any time the gold price goes up, it is automatically built into the value of the Euro. As the dollar falls, the price of gold goes up, in other words, any fall in the dollar or rise in the gold price coincides exactly with an increase in value in the Euro.

In an event like this, the ECB/BIS would use the nuclear option and the dollar would be fucked to hell over night.

Sat, 10/23/2010 - 00:06 | Link to Comment Orly
Orly's picture

It was a bad tick, okay?

Please save your "end 4X 4eva" conspiracy theories for when the Bank of England doesn't have a lot to lose with the end of the market.

Man, alive.

Sat, 10/23/2010 - 01:01 | Link to Comment Spitzer
Spitzer's picture

i didnt say end for eva, robo did

Sat, 10/23/2010 - 01:23 | Link to Comment Orly
Orly's picture

I know but I can't really understand the gold fever so many traders here believe in.  But to think that the international banking community would "fuck to hell" the USD overnight is just an absurd idea, don't you think so?

I mean, for real?  Let's just try a hypothetical reversal.  Let's say that the Fed and the Bank of England decided to crush the ruble overnight.  What would be the political backlash?  What would be the level international outrage?

What would be the point?

Sat, 10/23/2010 - 07:47 | Link to Comment HomemadeLasagna
HomemadeLasagna's picture

When this cloudy title problem catches up with the trillions upon trillions of dollar-denominated derivitives that are based on said titles, it may well be the investment community rather than the banking community that will "fuck to hell" the USD overnight.  Once that train gets rolling, the first ones to jump out of the way are the ones that live.  And when that train gains some momentum, it'll be real hard to stop.  Any and all paper tied to the dollar gets tainted by association.

 

If you look out along the horizon, you can just make out the lights on the engine now...

Sat, 10/23/2010 - 09:13 | Link to Comment Oh regional Indian
Oh regional Indian's picture

Agree homemade. This complex is going to crumble under the weight of sentiment (read panic on main street).

If they try to legislate like they did in 2008 (financials short-ban et. al.), it will get even worse.

This time, the fuse is well and truly lit.

ORI

http://aadivaahan.wordpress.com

 

Sat, 10/23/2010 - 09:48 | Link to Comment Crime of the Century
Crime of the Century's picture

Deja vu

I don't look at it as anything more than the shudder of a black cat.

Fri, 10/22/2010 - 23:44 | Link to Comment High Plains Drifter
High Plains Drifter's picture

Its a shame, that gold and silver supply and demand issues play second fiddle to the bogus leveraged paper gold and silver market. With leverage stated at perhaps 100 times , the whole thing is corrupt and disgusting. Time is all its going to take to fix this broken market and we the people will do it. One might ask just how much gold and silver bullion do these fishy ETF's really have in their vaults, not to mention the COMEX , etc. The whole thing is rigged but it is about to fly apart , burdened by its own deceit. This is a good thing. We await this event and will smile when it does happen. It has been long coming and is long overdue.

Fri, 10/22/2010 - 23:52 | Link to Comment Spitzer
Spitzer's picture

gold did not break an all time high this week !!!

Blood bath alert!!!!!

I am still $40 ahead on a purchase a month ago for cock sucking fuck sake.

 

 

Sat, 10/23/2010 - 09:20 | Link to Comment ZakuKommander
ZakuKommander's picture

About 9 Happy Meals.

Sat, 10/23/2010 - 09:49 | Link to Comment Crime of the Century
Crime of the Century's picture

At least his are happy...

Sat, 10/23/2010 - 12:41 | Link to Comment Spitzer
Spitzer's picture

x 10

Sat, 10/23/2010 - 00:36 | Link to Comment DoChenRollingBearing
DoChenRollingBearing's picture

@RobotT

They flash crash the price of gold $200 like you say, the physical gold will disappear as fast as your lightening strike!

The VALUE of physical gold will not change because of HFT manipulation.  Of course, I am talking of gold holders (strong hands) not speculators...  I have always had bad luck speculating.

Sat, 10/23/2010 - 00:51 | Link to Comment tmosley
tmosley's picture

Silver supplies are already drying up.  It's looking a lot like 2008, but without the big price decline.

I'll be keeping some dry powder should I be able to pick up some more silver on the cheap, but I'm not betting on it.

Sat, 10/23/2010 - 00:48 | Link to Comment Chappaquiddick
Chappaquiddick's picture

Don't trade futures.  Buy and hold the physical item.  They can flash crash all they want - you'll stay intact.

Sat, 10/23/2010 - 08:51 | Link to Comment Quinvarius
Quinvarius's picture

Ridiculous.  A dollar crash does not make gold drop.  Gold would have popped $200 not dropped.

Sat, 10/23/2010 - 10:03 | Link to Comment Infinite QE
Infinite QE's picture

Actually 100% inaccurate. As usual. 

Sat, 10/23/2010 - 19:08 | Link to Comment DosZap
DosZap's picture

Uh Huh, and if it STAYED that way, all you paper whores would have is a bloody ass, and maybe some FRN's to wipe with.

Gold (physical) will be $2000.00 by END of next year.

Pull back to 1260/1300, and watch the pile in.

The Indians,and Asians,SK's,Chinese,are on autoejaculation at the thought of it under $1300.00.......

Watch the train wreck.............these "Little Flash Crashes", are a message for those who KNOW they are going to go down, and STAY, wake up!!!!!!!!!.

Damn, gotta draw you a map bro?.

It's your FRN's,exchange at least SOME  while the fools are still giving your real money.

 

Fri, 10/22/2010 - 22:04 | Link to Comment e1618978
e1618978's picture

Anyone know how to find out if an IRA physical gold trustee is actually trustworthy?  Are there ratings for them somewhere? 

Fri, 10/22/2010 - 22:47 | Link to Comment spinone
spinone's picture

If you drop it on your toe, and it doesn't hurt, don't trust it.

Fri, 10/22/2010 - 23:08 | Link to Comment e1618978
e1618978's picture

With IRA money, you dont have the option of holding it yourself.

Fri, 10/22/2010 - 23:28 | Link to Comment A Nanny Moose
A Nanny Moose's picture

It's OK, they may be coming for all our IRA's and 401K's soon anyway.

 

All your retirements are belong to US

Fri, 10/22/2010 - 23:46 | Link to Comment High Plains Drifter
High Plains Drifter's picture

Cprrect. the FED bagman, the IRS wants to get their pound of flesh when the IRA "owner" wants to get his gold which probably isn't there anyway.

Sat, 10/23/2010 - 08:04 | Link to Comment spinone
spinone's picture

You answered your own question.  Evaluate your options for withdrawing it.  Taxes will probably be higher in the future, so tax deferment is not the benefit it ought to be.

Fri, 10/22/2010 - 23:27 | Link to Comment A Nanny Moose
A Nanny Moose's picture

That would take a mighty large stack of paper goled

Fri, 10/22/2010 - 23:26 | Link to Comment espirit
espirit's picture

Trust me. +++AAA+++

Sat, 10/23/2010 - 19:11 | Link to Comment DosZap
DosZap's picture

Only one's I would trust are BullionVault,Perth Mint, and make DAMN sure it's stored in Zurich, not London.Or in Perths case, Aussieland.

Fri, 10/22/2010 - 22:58 | Link to Comment johngaltfla
johngaltfla's picture

Holy CHIT!

Sat, 10/23/2010 - 02:33 | Link to Comment frankTHE COIN
frankTHE COIN's picture

You are a Doctor, and you are good.

Sat, 10/23/2010 - 05:46 | Link to Comment HitTheFan
HitTheFan's picture

Great time to be buying gold & silver.

I'll wait til after the 30% correction.

Sat, 10/23/2010 - 13:55 | Link to Comment Crisismode
Crisismode's picture

The 30% correction after it hits $2500, or the 30% correction after it hits $4000?

Sat, 10/23/2010 - 12:24 | Link to Comment pamriallc
pamriallc's picture

thankfully the ETF marketplace for currency hedging isn't the "true" marketplace for currencies.  there's going to be some errors in the ETF marketplace ssince it's not yet a perfect science, but relative to the fee involved in trading thee currencies in a FX account, the ETF stuff is brilliant.  99.999999 percent of the time the system works pretty well.  living your entire life looking for the "tail risk" you could be waiting 50+ years to see your ship come in, and by that time all of your buddies will be selling their yachts.

Sun, 10/24/2010 - 10:49 | Link to Comment unum mountaineer
unum mountaineer's picture

thank you

Mon, 08/15/2011 - 06:47 | Link to Comment cindycheng
cindycheng's picture

No doubt it's really a great article and I felt really great going through your blog post. Great to read more articles from your side.
dual saw

Fri, 10/22/2010 - 21:30 | Link to Comment RoRoTrader
RoRoTrader's picture

A look at the future, maybe? Or as someone lovely I knew called things like that, a forerunner of what may come to pass.

Fri, 10/22/2010 - 22:28 | Link to Comment TheMonetaryRed
TheMonetaryRed's picture

Dear RoRo, 

 

When you ask the future, we already bid. 

When you bid the future, we already ask. 

 

That is all, 

Team Atari 

Fri, 10/22/2010 - 22:45 | Link to Comment RoRoTrader
RoRoTrader's picture

 

Fake.......junk it.

Fri, 10/22/2010 - 21:31 | Link to Comment PeterB
PeterB's picture

Looks like the markets are getting a little tipsy on Ben Shalom's super strong koolaid. Oh well, we all slip now again...but then again I remember we also seem more probable to collaspe in a stupor after we'd slipped. MMmmm, nevermind party on dudes!

Fri, 10/22/2010 - 21:35 | Link to Comment Hollywood
Hollywood's picture

Forget koolaid--this can only be brough on by Tang.

Fri, 10/22/2010 - 23:06 | Link to Comment unum mountaineer
unum mountaineer's picture

putang?

Fri, 10/22/2010 - 21:33 | Link to Comment Bill Lumbergh
Bill Lumbergh's picture

I am personally convinced nothing will change in this market until something big happens to make everyone wake up and demand change.

Sat, 10/23/2010 - 08:04 | Link to Comment MsCreant
MsCreant's picture

I shouldn't pick on you, really I shouldn't, but your comment has this innocence about it that makes me want to crush it to bits under my heel, for your own good, our own good. 

We are awake. We are demanding change. They are not doing shit. They don't care about what you and I demand. They don't have to listen to us at all because no one is enforing the rules. They laugh at us in all likelihood because they have control of the apparatus and you and I do not. Bitch all you like. Complain and demand until you are blue in the face. They don't care. 

Now what, sweetheart? Take it to the next place. Now what?

Sat, 10/23/2010 - 09:06 | Link to Comment MeTarzanUjane
MeTarzanUjane's picture

Tyler does not like it nor does the highly leveraged shallow pocket crowd but it does re-balance via shakeout.

The only thing wrong with that is an assumption that most trading dummies have; "you have privacy on the Internet". All of your trades and all your stops are visible to those who seek to see them.

The Internet is the worlds first all-in party line. Back in the 50's to 80's you could ask a phone operator to connect you to a party line and you could participate in open conversations. All participants had no expectation of privacy.

The Internet is THE manifestation of this without knowledge or consent of most participants. And to an equal extent so are your cell phones. You put all your business out in the wild and "people are listening".

If you ban algorithmic trading the same result can be achieved with a 1000 traders in a boiler room phoning in the trades.

The real problem is how and where did the information come from that triggered the trades?
Once you understand this you will realize that you will never be able to change it.

Sat, 10/23/2010 - 10:24 | Link to Comment MsCreant
MsCreant's picture

The myth of Pandora's box is embodied in the net, and certainly in the trading mechanisms, is what I hear you saying. Or if you like, there is no putting the genie back in the bottle. 

This is a force so powerful, that there is nothing to be done? As long as there are computers there will be no regulation and enforcement because it is evolving too fast and the learning curve is too steep to ever catch up to what is possible? There is a term for this that sociologists use called the "tragedy of culture." The cultural products out pace the ability of the individual participants to master them, thus they become mastered by them.

Talk about the ultimate in anti-conspiracy theories. We are all already dead. Same as it ever was I guess. Do we then just accept what has happened and just move on with our individual lives and do nothing to try to address the situation, because we can't?  I know all I feel I have any power over is what happens locally, immediately around me, but that premise is really hard for me to accept.

Sat, 10/23/2010 - 11:45 | Link to Comment Oh regional Indian
Oh regional Indian's picture

MsC, in a fractal world (as it is) I would aver that the only power you have is over yourself.

On everything else, you merely exert influence.

I think that the re-cognition of that would be good for all of us.

It's inner work time...

ORI

http://aadivaahan.wordpress.com

Sat, 10/23/2010 - 14:59 | Link to Comment Orly
Orly's picture

Yeah.  And that dude uses stops.

Sun, 10/24/2010 - 10:54 | Link to Comment unum mountaineer
unum mountaineer's picture

lol

Sat, 10/23/2010 - 16:36 | Link to Comment MeTarzanUjane
MeTarzanUjane's picture

"This is a force so powerful, that there is nothing to be done?"

Well not necessarily. If you look at companies like Corning Cable Systems you will understand why they are doing so well. They make fiber optic(FO) cable.

Some organizations run their own FO cables directly to the exchanges. Using something called quantum cryptography, you can guarantee a pipeline that cannot be eavesdropped upon.
http://en.wikipedia.org/wiki/Quantum_cryptography
http://www.printerinks.com/Quantum-Cryptography-Basics.html

Some say not, but in practice once a photon is "listened" to by an eavesdropper it's physical properties change and those changes are detectable.
http://www.nature.com/nphoton/journal/v4/n10/full/nphoton.2010.214.html

Expensive yes. Technical yes and if not setup correctly it can be hacked. But if done correctly it works.

Do the millions of daytraders like Tyler's favorite The Cilantro Fund, have direct fiber? No, they use AOL to connect to Scottrade, CharleySchwabb, or ThinkOrSwim. AOL sniffs their pipelines and finds all the daytraders positions, and watches their research, etc... and offer it all for sale to the highest bidder. Scottrade and TOS, etc... sell their customers data to aggregators who sell it to the algo's.

It's just business, read the contract with your ISP and trading platform. The daytraders allow it to happen. It's hard to stop ignorance that is magnified by greed.

Sun, 10/24/2010 - 03:25 | Link to Comment jesus
jesus's picture

I suggest taking some introductory computer science classes before posting again.

Sat, 10/23/2010 - 09:48 | Link to Comment Bill Lumbergh
Bill Lumbergh's picture

Your comments reflect my sentiments thus I do not understand your frustration.  A lot of people have made their frustrations known to bureaucrats but nothing seems to radically change.  Short of a true revolution of some form what will change today?  This is my premise in that once something "blows" to destroy the current system we will have no choice but to build a new one.

Sat, 10/23/2010 - 10:29 | Link to Comment MsCreant
MsCreant's picture

I probably owe you an apology. See discussion above us. Even as I was trying to so called "wake" you up, I got served my own "wake-up" call.

Peace 

Sat, 10/23/2010 - 19:17 | Link to Comment DosZap
DosZap's picture

MsCreant,

a tad OT, but the perfect segue into the SS/MC fiasco playing out.

The same rules apply.WE have NO SAY.

And if we did,who gives a squat?.

40-70% of Americans did not want the major legislation that was RAMMED down our throats, we yelled, we screamed, we marched, we called, we wrote, we emailed, SO WHAT!.

THEY, as you put it so eloquently, do not give a shit.

Fri, 10/22/2010 - 21:35 | Link to Comment ninja-ish
ninja-ish's picture

this is the end of paper money. commodities, here i come!

Fri, 10/22/2010 - 21:43 | Link to Comment New_Meat
New_Meat's picture

paper commodities?

Sat, 10/23/2010 - 19:19 | Link to Comment DosZap
DosZap's picture

I think he meant,

paper commodeities

Fri, 10/22/2010 - 21:38 | Link to Comment geminiRX
geminiRX's picture

Just in time for that G20 meeting. Hilarious:)

Fri, 10/22/2010 - 23:28 | Link to Comment espirit
espirit's picture

Then it's the Gee20 meeting.

Sat, 10/23/2010 - 08:21 | Link to Comment MeTarzanUjane
MeTarzanUjane's picture

Baracks friend Mr. Soros is out exercising his shiny new algo just in time for G20 "negotiations".

Fri, 10/22/2010 - 21:43 | Link to Comment Orly
Orly's picture

If my stops were taken out to the forest but no one was there for the other side of the trade, would I still get rich?

 

/:

Fri, 10/22/2010 - 21:44 | Link to Comment New_Meat
New_Meat's picture

no, just as the man, you'd be fubar. - Ned

Fri, 10/22/2010 - 21:45 | Link to Comment Sugar Bear
Sugar Bear's picture

Dxy to  100

Fri, 10/22/2010 - 21:54 | Link to Comment PeterB
PeterB's picture

C'mon let's go

Fri, 10/22/2010 - 22:33 | Link to Comment frankTHE COIN
frankTHE COIN's picture

Bens dead fall would have filled you.

Fri, 10/22/2010 - 23:48 | Link to Comment -1Delta
-1Delta's picture

ya it was weird- all my trades (all 55 long DXZ10 at 74/75) canceled. bullshit.

i still dont know who/what the hell was selling down there.

what is scary is that the dx (relatively illiquid relative to FX or even CME currency FX) can move the entire market with 400 cars....

 

Fri, 10/22/2010 - 21:47 | Link to Comment TheMonetaryRed
TheMonetaryRed's picture

Dear Everyone, 

We have co-located your money. 

That is all. 

 

Yours As Ever, 

Team Atari. 

 

P.S. - We win. 

Fri, 10/22/2010 - 21:49 | Link to Comment Spitzer
Spitzer's picture

Tyler

Many people including myself are more into the macro end of things so we have not been paying attention to these flash jobs on say apple but....

How can this happen in the currency space ?

Fri, 10/22/2010 - 23:50 | Link to Comment -1Delta
-1Delta's picture

the dx is pretty much illiquid- its not FX or CME futures- it is ICE

Sat, 10/23/2010 - 08:41 | Link to Comment Popo
Popo's picture

Via ... A bad print.

Move along. Nothing to see here.

Fri, 10/22/2010 - 21:49 | Link to Comment Aristarchan
Aristarchan's picture

Ahh....its just super-computers fondling each others silicon bits.

Sat, 10/23/2010 - 01:31 | Link to Comment TheGoodDoctor
TheGoodDoctor's picture

That made me discharge my capacitor.

Sat, 10/23/2010 - 02:35 | Link to Comment DukkButt
DukkButt's picture

And made my inductor oscillate wildly!

Fri, 10/22/2010 - 21:57 | Link to Comment bob_dabolina
bob_dabolina's picture

Maybe these flash crashes are an algo making some large hedged bet in minutes. These hyperbolic moves could be to just cover it's tracks.

I don't know this doesn't make sense. Why would it drop like that and recover in that time frame? What was that, like 30 minutes? I'm not a my work station.

These are currencies we are talking here.

Why that move, in that time frame, at this point in time, with this currency?

Fri, 10/22/2010 - 23:31 | Link to Comment espirit
espirit's picture

Maybe other countries algo's are trying to scalp one another.

Currency war B****ezzz!

Fri, 10/22/2010 - 23:41 | Link to Comment hamurobby
hamurobby's picture

What if it was done on purpose to show the world that someone has a huge influence, and are not afraid to use it to get what they want.

Sat, 10/23/2010 - 19:27 | Link to Comment DosZap
DosZap's picture

Tin Foil Hat firmly buckled,

What if (what IF), they are using these to SCAM the system, rake off massive profits, and use the proceeds for more QE support, or lining someones pockets?.

Only the HFT Masters have the power to start, and stop....and do not tell me there is no manual joystick.

Fri, 10/22/2010 - 22:01 | Link to Comment Atomizer
Atomizer's picture

All organized for the G-20 circle jerk meeting

A rehash of prior meeting to July meeting to present.

Progress report on the economic and financial actions of the previous G20 Summits, July 20, 2010

http://www.g20.org/Documents2010/07/July_2010_G20_Progress_Grid.pdf

Circle Fucking Jerks just putting on another dog & pony show for the masses to view thru the daily teleprompter news.

G-20 Milestones completed = None. Media will report 'Better than expected'

Fri, 10/22/2010 - 21:55 | Link to Comment digalert
digalert's picture

Any doubt Turbo Tax Geithner is playing currency war games?

Fri, 10/22/2010 - 22:04 | Link to Comment TheGoodDoctor
TheGoodDoctor's picture

I wonder if he will get food poisoning while there?

Fri, 10/22/2010 - 21:55 | Link to Comment Cognitive Dissonance
Cognitive Dissonance's picture

If this crash in the DXY (seen below) had happened during regular hours, apparently driven not by the dollar but by DXY component EUR (there was no comparable move in other USD pairs), it would have created a complete market collapse. Luckily it happened an hour after close.

Maxwell Smart to the Chief: "Missed it by that much."

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

Fri, 10/22/2010 - 22:13 | Link to Comment LeBalance
LeBalance's picture

I remember one commentator on ZH drawing rather provocative fictional lines from a previously legislative proximate flash crash in stocks.

Hmmmmm....FC in FX space hurting "nothing" proximate to (or shall we say demo for) G20 crowd?

/nah, couldn't be/

Fri, 10/22/2010 - 21:56 | Link to Comment Cursive
Cursive's picture

Currency flash crash?

 

Money isn't everything and soon it may be nothing at all.

~ Cursive

Fri, 10/22/2010 - 22:00 | Link to Comment Dapper Dan
Dapper Dan's picture

Bank failure Friday update,  7 banks down. hit to FDIC $476 million

 

Fri, 10/22/2010 - 22:51 | Link to Comment Hollywood
Hollywood's picture

A better than expected 7 banks failures occured on Friday...

Fri, 10/22/2010 - 22:04 | Link to Comment sudzee
sudzee's picture

Seven banks closed tonight by the FDIC. Possible link to flash crash? Bank holiday may come before the election.

Fri, 10/22/2010 - 22:06 | Link to Comment TheGoodDoctor
TheGoodDoctor's picture

I hope not. That would not be good. Would they still hold the elections? Boy that sure would cock block the tea party.

Fri, 10/22/2010 - 22:52 | Link to Comment Zon
Zon's picture

no i think that would probably anger the tea party activists even more...which probably would be good i would think as for the so called "tea party candidates"....please, there is no difference in any of the tea party candidates(except maybe rand paul) from the neocons and the establishment conservatives.

Sat, 10/23/2010 - 01:36 | Link to Comment TheGoodDoctor
TheGoodDoctor's picture

Hey c'mon man. A guy can dream about viable third party candidates can't he? I am so sick of the two party rhetoric!

Sat, 10/23/2010 - 01:36 | Link to Comment TheGoodDoctor
TheGoodDoctor's picture

Dupe.

Sat, 10/23/2010 - 19:34 | Link to Comment DosZap
DosZap's picture

Zon,

'Bro,with all due respect, you are SO far off right it's hilarious.

Not saying IN TIME they won't become LIKE them, but we are seeing so many PARADIGM shifts of late,nothing can be discarded.

Bank holiday before election?.Yeah, that  MIGHT stop the election, and kick off a second Civil War.

And, I am not joking, we are sitting on not just a financial , fiscal powder keg here.

Fri, 10/22/2010 - 22:08 | Link to Comment bob_dabolina
bob_dabolina's picture

Double post/

Fri, 10/22/2010 - 22:09 | Link to Comment bob_dabolina
bob_dabolina's picture

Someone correct me if I am wrong.

Don't all things that "flash crash" go up singnificantly after they flash crash?

Fri, 10/22/2010 - 23:55 | Link to Comment flacon
flacon's picture

Doesn't matter. It doesn't even matter who shorted it or who went long. What matters is the magical Keynesian word "CONFIDENCE".

Sat, 10/23/2010 - 00:01 | Link to Comment abalone
abalone's picture

What are you a comedian? you probably should be as that is some serious funny observational humour Bob.

Sat, 10/23/2010 - 09:03 | Link to Comment MeTarzanUjane
MeTarzanUjane's picture

relocated

Fri, 10/22/2010 - 22:14 | Link to Comment banksouttacontrol
banksouttacontrol's picture

NOT SO CIVAL DISOBEDIANCE YOU FUKS!

Fri, 10/22/2010 - 22:40 | Link to Comment snowball777
snowball777's picture

Tel hukt on fonix to giv yur muny bek (and buy a new keyboard with working shift/caps lock keys, 'fer fuks zake').

Fri, 10/22/2010 - 22:45 | Link to Comment banksouttacontrol
banksouttacontrol's picture

ok snowball you are right..i am so sorry. forgive me for showing any anger...i am ball-less. but if you are ever in a cross walk and I miss the brake pedal do not be suprised oppss....i missy brakey pedalin der yugo ooofuk.

 

f off.

Sat, 10/23/2010 - 08:51 | Link to Comment snowball777
snowball777's picture

you'll miss the brake because you collapse into the handlebars from acute lead poisoning (but I'm sure you wouldn't miss the pedals on your bike otherwise).

Audi RS8, thanks for playing.

Sat, 10/23/2010 - 19:36 | Link to Comment DosZap
DosZap's picture

Is he French, or Greek?.

Fri, 10/22/2010 - 22:14 | Link to Comment All_Is_Well
All_Is_Well's picture

Dollar is going up!

Sat, 10/23/2010 - 00:56 | Link to Comment tmosley
tmosley's picture

In smoke?

Sat, 10/23/2010 - 01:21 | Link to Comment woolly mammoth
woolly mammoth's picture

Like poof!

Fri, 10/22/2010 - 22:16 | Link to Comment Atomizer
Atomizer's picture

US reserve currency will be saved. Obama has an idea to combat mounting debt saturation.

Obama launches effort to develop jet fuel from plants

http://content.usatoday.com/communities/greenhouse/post/2010/10/obama-biofuels-crop-payments/1

You realise, he borrowed the idea from DARPA. I can only imagation his thought to tax all lakes in US. A new Government revenue stream is born.

US military to make jet fuel from algae

February 16, 2010 by Lin Edwards

http://www.physorg.com/news185521814.html

Obama is a genuis, not.

Fri, 10/22/2010 - 22:44 | Link to Comment jdrose1985
jdrose1985's picture

Why not legalize hemp which is far more versatile than petroleum and far less toxic to the planet. I'm posting from blackberry or else wpuld include links but its an option I NEVER see anyone mention. Plus it is renewable!

Fri, 10/22/2010 - 22:53 | Link to Comment SWRichmond
SWRichmond's picture

The stems are useful for lots of things, but what would they do with all those leaves?

Fri, 10/22/2010 - 23:32 | Link to Comment A Nanny Moose
A Nanny Moose's picture

compost?

Sat, 10/23/2010 - 17:13 | Link to Comment Hulk
Hulk's picture

Brownies first, then compost...

Sun, 10/24/2010 - 00:58 | Link to Comment Roi
Roi's picture

You harvest after the seeds have fallen of to the ground. That way you don't need a shitload of fossil based fertilizers... Aditionally, you didn't need pesticides when growing them.

 

It would be really interesting if someone could find a good way to use the oil from the hemp seeds in an engine. About half the plants weight are in the seeds.

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