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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.



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 | 670963 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 | 671004 Spitzer
Spitzer's picture

congrats on the first time doc.

Fri, 10/22/2010 - 22:07 | 671046 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 | 671115 flacon
Fri, 10/22/2010 - 23:47 | 671316 ATG
ATG's picture

Yes, Nice ICE not.

More to come Sunday?

Fri, 10/22/2010 - 23:55 | 671335 -1Delta
-1Delta's picture

ICE not CME not FX...

Sat, 10/23/2010 - 11:25 | 671812 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 | 671932 -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 | 671300 High Plains Drifter
High Plains Drifter's picture

Say it like the Dice man?   



face down , ass up !!!!!

Fri, 10/22/2010 - 22:55 | 671185 unum mountaineer
unum mountaineer's picture

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

Fri, 10/22/2010 - 23:23 | 671253 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 | 671654 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 | 671006 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 | 671062 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 | 671084 TheMonetaryRed
TheMonetaryRed's picture

Before March, possibly by January. 

We'll get some panic first. 


Nah, goldsters have at least until January. 

Fri, 10/22/2010 - 23:48 | 671321 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 | 671409 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?  


Sat, 10/23/2010 - 09:19 | 671712 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 | 671007 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 | 671022 tmosley
tmosley's picture


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

Fri, 10/22/2010 - 22:59 | 671201 unum mountaineer
unum mountaineer's picture

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

Fri, 10/22/2010 - 21:59 | 671025 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 | 671095 AccreditedEYE
AccreditedEYE's picture

+10 LMAO!!

Fri, 10/22/2010 - 22:20 | 671074 rocker
rocker's picture

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

Fri, 10/22/2010 - 22:47 | 671159 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 | 671189 tallystick
tallystick's picture

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

Fri, 10/22/2010 - 23:25 | 671259 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 | 671331 ATG
ATG's picture

Yes, 36 cents before the reverse 10:1 split

Sat, 10/23/2010 - 00:03 | 671360 Spitzer
Spitzer's picture

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

Fri, 10/22/2010 - 22:59 | 671199 rocker
rocker's picture

Think Not !!!

Fri, 10/22/2010 - 23:25 | 671262 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 | 671271 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 | 671334 ATG
ATG's picture


On a long enough timeline...

Fri, 10/22/2010 - 23:35 | 671290 -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 | 671297 flacon
flacon's picture

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


Sat, 10/23/2010 - 00:22 | 671379 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 | 671314 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 | 671415 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 | 671498 Spitzer
Spitzer's picture

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

Sat, 10/23/2010 - 00:01 | 671352 Spitzer
Spitzer's picture


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 | 671368 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 | 671441 Spitzer
Spitzer's picture

i didnt say end for eva, robo did

Sat, 10/23/2010 - 01:23 | 671477 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 | 671655 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 | 671708 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.



Sat, 10/23/2010 - 09:48 | 671728 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 | 671312 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 | 671328 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 | 671713 ZakuKommander
ZakuKommander's picture

About 9 Happy Meals.

Sat, 10/23/2010 - 09:49 | 671729 Crime of the Century
Crime of the Century's picture

At least his are happy...

Sat, 10/23/2010 - 12:41 | 671913 Spitzer
Spitzer's picture

x 10

Sat, 10/23/2010 - 00:36 | 671399 DoChenRollingBearing
DoChenRollingBearing's picture


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 | 671425 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 | 671416 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 | 671694 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 | 671736 Infinite QE
Infinite QE's picture

Actually 100% inaccurate. As usual. 

Sat, 10/23/2010 - 19:08 | 672434 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 | 671037 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 | 671161 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 | 671217 e1618978
e1618978's picture

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

Fri, 10/22/2010 - 23:28 | 671278 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 | 671315 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 | 671661 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 | 671270 A Nanny Moose
A Nanny Moose's picture

That would take a mighty large stack of paper goled

Fri, 10/22/2010 - 23:26 | 671264 espirit
espirit's picture

Trust me. +++AAA+++

Sat, 10/23/2010 - 19:11 | 672438 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 | 671198 johngaltfla
johngaltfla's picture

Holy CHIT!

Sat, 10/23/2010 - 02:33 | 671531 frankTHE COIN
frankTHE COIN's picture

You are a Doctor, and you are good.

Sat, 10/23/2010 - 05:46 | 671597 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 | 672051 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 | 671887 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 | 673262 unum mountaineer
unum mountaineer's picture

thank you

Mon, 08/15/2011 - 06:47 | 1560883 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 | 670964 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 | 671043 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 | 671145 RoRoTrader
RoRoTrader's picture


Fake.......junk it.

Fri, 10/22/2010 - 21:31 | 670967 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 | 670978 Hollywood
Hollywood's picture

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

Fri, 10/22/2010 - 23:06 | 671214 unum mountaineer
unum mountaineer's picture


Fri, 10/22/2010 - 21:33 | 670971 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 | 671660 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 | 671704 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 | 671753 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 | 671834 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...


Sat, 10/23/2010 - 14:59 | 672142 Orly
Orly's picture

Yeah.  And that dude uses stops.

Sun, 10/24/2010 - 10:54 | 673264 unum mountaineer
unum mountaineer's picture


Sat, 10/23/2010 - 16:36 | 672266 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.

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.

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 | 673003 jesus
jesus's picture

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

Sat, 10/23/2010 - 09:48 | 671727 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 | 671759 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.


Sat, 10/23/2010 - 19:17 | 672444 DosZap
DosZap's picture


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 | 670975 ninja-ish
ninja-ish's picture

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

Fri, 10/22/2010 - 21:43 | 670989 New_Meat
New_Meat's picture

paper commodities?

Sat, 10/23/2010 - 19:19 | 672446 DosZap
DosZap's picture

I think he meant,

paper commodeities

Fri, 10/22/2010 - 21:38 | 670982 geminiRX
geminiRX's picture

Just in time for that G20 meeting. Hilarious:)

Fri, 10/22/2010 - 23:28 | 671274 espirit
espirit's picture

Then it's the Gee20 meeting.

Sat, 10/23/2010 - 08:21 | 671672 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 | 670988 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 | 670991 New_Meat
New_Meat's picture

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

Fri, 10/22/2010 - 21:45 | 670992 Sugar Bear
Sugar Bear's picture

Dxy to  100

Fri, 10/22/2010 - 21:54 | 671013 PeterB
PeterB's picture

C'mon let's go

Fri, 10/22/2010 - 22:33 | 671117 frankTHE COIN
frankTHE COIN's picture

Bens dead fall would have filled you.

Fri, 10/22/2010 - 23:48 | 671320 -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 | 670996 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 | 670999 Spitzer
Spitzer's picture


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 | 671323 -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 | 671689 Popo
Popo's picture

Via ... A bad print.

Move along. Nothing to see here.

Fri, 10/22/2010 - 21:49 | 671000 Aristarchan
Aristarchan's picture

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

Sat, 10/23/2010 - 01:31 | 671486 TheGoodDoctor
TheGoodDoctor's picture

That made me discharge my capacitor.

Sat, 10/23/2010 - 02:35 | 671534 DukkButt
DukkButt's picture

And made my inductor oscillate wildly!

Fri, 10/22/2010 - 21:57 | 671010 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 | 671287 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 | 671303 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 | 672462 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 | 671014 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

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 | 671017 digalert
digalert's picture

Any doubt Turbo Tax Geithner is playing currency war games?

Fri, 10/22/2010 - 22:04 | 671039 TheGoodDoctor
TheGoodDoctor's picture

I wonder if he will get food poisoning while there?

Fri, 10/22/2010 - 21:55 | 671018 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."

Fri, 10/22/2010 - 22:13 | 671056 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 | 671020 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 | 671028 Dapper Dan
Dapper Dan's picture

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


Fri, 10/22/2010 - 22:51 | 671174 Hollywood
Hollywood's picture

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

Fri, 10/22/2010 - 22:04 | 671036 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 | 671044 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 | 671178 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 | 671490 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 | 671491 TheGoodDoctor
TheGoodDoctor's picture


Sat, 10/23/2010 - 19:34 | 672471 DosZap
DosZap's picture


'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 | 671047 bob_dabolina
bob_dabolina's picture

Double post/

Fri, 10/22/2010 - 22:09 | 671048 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 | 671336 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 | 671349 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 | 671700 MeTarzanUjane
MeTarzanUjane's picture


Fri, 10/22/2010 - 22:14 | 671059 banksouttacontrol
banksouttacontrol's picture


Fri, 10/22/2010 - 22:40 | 671137 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 | 671151 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 | 671693 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 | 672475 DosZap
DosZap's picture

Is he French, or Greek?.

Fri, 10/22/2010 - 22:14 | 671060 All_Is_Well
All_Is_Well's picture

Dollar is going up!

Sat, 10/23/2010 - 00:56 | 671434 tmosley
tmosley's picture

In smoke?

Sat, 10/23/2010 - 01:21 | 671475 woolly mammoth
woolly mammoth's picture

Like poof!

Fri, 10/22/2010 - 22:16 | 671063 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

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

Obama is a genuis, not.

Fri, 10/22/2010 - 22:44 | 671146 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 | 671182 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 | 671289 A Nanny Moose
A Nanny Moose's picture


Sat, 10/23/2010 - 17:13 | 672312 Hulk
Hulk's picture

Brownies first, then compost...

Sun, 10/24/2010 - 00:58 | 672902 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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