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ES Volume: 40% Below Abysmal

Tyler Durden's picture


Today, in what is supposed to be an original piece, the NYT suddenly discovered that the stock market is no longer relevant.... it is probably our turn to say thanks - to think of all the jeers we got when we said that nobody really cares about stocks any more back in the spring of 2010, and in the summer... and in the fall... and winter... not to mention every single other time when we demonstrate that volume in stocks is now below abysmal. But just to validate with one charts what it takes some bloggers several pages of extended narrative to convey, here is today's ES volume chart. 884k shares traded, on 1.387MM average. This is nearly 40% below average. Perhaps it is time for some more essays about just how worthless and how irrelevant the stock market is, now that only a few machines trade it. After all, the NYT sure can do with the page views... And yes, some people are rotating their decimated muni holdings into stocks. The Golden Age for the ponzi scheme is back!


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Mon, 02/14/2011 - 16:24 | Link to Comment HamyWanger
HamyWanger's picture

The DOW will close green, like every other day, to commemorate the suicide of Mark this time.

We'll reach 14,000 by May. And by this time, pathetic permabears will keep shorting, and get their ass handed on a plate.


Mon, 02/14/2011 - 16:26 | Link to Comment plocequ1
plocequ1's picture

Volume? Who the fluck needs volume? We dont need no sticking volume. Just buy Apple or Nflx.

Mon, 02/14/2011 - 16:31 | Link to Comment TheGreatPonzi
TheGreatPonzi's picture

BTFD. Always and everywhere. It's like that fortunes and successful civilizations are made.

Harry is a sick individual.

Tue, 02/15/2011 - 07:37 | Link to Comment DavidC
DavidC's picture

READ it.

It's Hamy, not Harry.


Mon, 02/14/2011 - 16:35 | Link to Comment NoLongerABagHolder
NoLongerABagHolder's picture

ZH misses the point on volume because they data mine and only compare it to the volume during the crisis.

SPY volume is STILL higher today than it was pre-2007.

So are we to believe that the crisis volume levels are the "real" levels for volume?

If you compare back to pre-crisis, volume is actually still pretty high.


Mon, 02/14/2011 - 16:49 | Link to Comment alien-IQ
alien-IQ's picture

and the point you are missing is the participation rate of HFT which is multiples higher now than it was "pre- crisis" as you put it. But hey...who needs volume when you've got hope...and unicorns.

Mon, 02/14/2011 - 17:05 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

good point.

Mon, 02/14/2011 - 18:39 | Link to Comment H. Perowne
H. Perowne's picture

Better to remain silent and be thought a fool than have a followup post remove all doubt

Mon, 02/14/2011 - 16:32 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

hamy wanger: when a dog can't find a fire hydrant to pee on.

Mon, 02/14/2011 - 16:54 | Link to Comment whatz that smell
whatz that smell's picture

the tension is killing me!

DOW green.... DOW unchanged.... DOW green....

Mon, 02/14/2011 - 17:44 | Link to Comment system failure
system failure's picture

Damn right hamy, I am with you all the way. Dow 15,000 though or bust.

Mon, 02/14/2011 - 20:04 | Link to Comment Ratscam
Ratscam's picture

Were you on vacation on the money you made on buying the TFD?

Tue, 02/15/2011 - 03:54 | Link to Comment morph
morph's picture

Stocks are up, the economy is fixed, everyone has a job. 

Mon, 02/14/2011 - 16:21 | Link to Comment thetruth
thetruth's picture

everyone must be buying treasuries

Mon, 02/14/2011 - 16:29 | Link to Comment thetruth
thetruth's picture

oh, and CNBC just noticed this:

Mon, 02/14/2011 - 16:23 | Link to Comment umop episdn
umop episdn's picture

Standard operating procedure for propaganda outlets--deny, deny, deny, then...surprise! Whocouldaknown?

Mon, 02/14/2011 - 16:26 | Link to Comment Misean
Misean's picture


Mon, 02/14/2011 - 16:24 | Link to Comment usikpa
usikpa's picture

Are 2/30 and 2/10 finally rolling over?

Mon, 02/14/2011 - 16:27 | Link to Comment the not so migh...
the not so mighty maximiza's picture

Remember to lick it before sticking it this Valentines Day.

Mon, 02/14/2011 - 16:29 | Link to Comment Bam_Man
Bam_Man's picture

Blame it on the weather....

"It didn't snow on Wall Street today, so investors took the day off."

Sounds plausible.

Mon, 02/14/2011 - 16:31 | Link to Comment Misean
Misean's picture

My understanding is that the NYT's crack investigative reporters are doing an expose showing that the Pope is Catholic. Their ability to be on top of things is truly amazing.

Tue, 02/15/2011 - 01:09 | Link to Comment StychoKiller
StychoKiller's picture

No!?  And I suppose in your movie, that bears crap in the woods too! :>D

Mon, 02/14/2011 - 16:31 | Link to Comment Racer
Racer's picture

Hold or buy shares at these valuations? No

Short shares at these valuations? No, you will get destroyed.

Just watch the madness and let them kill each other trying to get out the exit doors

Mon, 02/14/2011 - 16:34 | Link to Comment optimator
optimator's picture

Todays POMO 88% less that what the FED usually pumps in --

Mon, 02/14/2011 - 16:35 | Link to Comment irishlink
irishlink's picture

DOES IT MATTER ANYMORE  Viagra sales up for valentines. NTFLK up almost at new highs. Dont worry be happy! MSM not even mentioning Iran Egypt Lybia etc.etc.

Mon, 02/14/2011 - 16:43 | Link to Comment monkeyfaction
monkeyfaction's picture

It says on the Netflix website:

'Netflix does not pay cash dividends on its common stock and does not expect to do so in the future.'

So, if I buy Netflix, the only return I can ever hope to achieve is somebody else buying it from me later at a higher price.

I literally do not understand the world anymore.

Mon, 02/14/2011 - 16:52 | Link to Comment DaBernank
DaBernank's picture

Technically, it's not arbitrage but might as well revisit the definition.

the business of buying and selling securities, currencies, and commodities on an international scale so as to take advantage of differences in rates of exchange and prices. — arbitrager, arbitrageur, n.

Mon, 02/14/2011 - 16:36 | Link to Comment jus_lite_reading
jus_lite_reading's picture

Low Volume = Green Shoot

Everyday is an UP day.

The house of cards is unwound.

Mon, 02/14/2011 - 16:40 | Link to Comment DaBernank
DaBernank's picture

All I need is one black box to buy my momo trades. Who needs retail investors?

Mon, 02/14/2011 - 16:40 | Link to Comment youngman
youngman's picture

So someone tell me why the big interest in merging these exchanges....lower volumes in the future..the trust is gone..and when this crashes ..they might be why would you want to buy another one.....I do not know why?????

Mon, 02/14/2011 - 16:50 | Link to Comment John McCloy
John McCloy's picture

The complacency exchange rallying green. With depressions like these who needs recoveries. The Federal Reserve backstop is impenetrable..for now

Mon, 02/14/2011 - 16:53 | Link to Comment DaBernank
DaBernank's picture

This will continue - until it doesn't.

Mon, 02/14/2011 - 16:53 | Link to Comment irishlink
irishlink's picture

Trying to counter act the increae in shares traded on other platforms. And dont forget ETFs

Mon, 02/14/2011 - 16:52 | Link to Comment bob_dabolina
bob_dabolina's picture

Record breaking volume to the upside and massive inflows.

-Bob Pisani

Mon, 02/14/2011 - 16:54 | Link to Comment BearishFeijoadaSushi
BearishFeijoadaSushi's picture

ghosty monday

Mon, 02/14/2011 - 16:55 | Link to Comment New Revolution
New Revolution's picture

Sounds like a top forming to me,... public getting back in,Media realizing its all a mark...  Congress extending the power to maintain Brownshirts in the streets if necessary, The Obamanation issuing a BIG BUDGET camoflaged with cuts to the most defenseless, eviserating Fannie and Freddie as the only real reform, but in reality the most sought after GSE that Wall Street has been trying to kill for 30 years.   A fresh rise in taxes on the backs of those who all ready pay too much directly or indirectly leading to an increase in tax revenues which he knows he'll never see, looking for deficits he says will never come, all financed by his enabler at the FRB B. Baranke and his favorite dog Timmy 'G', whose mission is to make solvent the those who will never be insolvent.   And as long as they can maintain the illusion of stability and keep making the payroll it keeps on'a rollin.  

Until one day it stops.

Mon, 02/14/2011 - 16:59 | Link to Comment gwar5
gwar5's picture

If we had known POMO and machines could trade the market higher why didn't we just do this in the 1980's?

Mon, 02/14/2011 - 19:37 | Link to Comment onarga74
onarga74's picture

No algo/quant trading to the extent it is now.  They're neutral in essence.  Their function has nothing to do with Warren Buffett buying more WFC.  They find the imbalances and most often maximize profits where there is the most pain.  Since we're all on a 3 minute news cycle we kinda forgot about the flash crash  or the mini flash crash in aapl last week.  Anyone watching their screen can see the QE2 moving stocks especially with aapl and funny it hasn't gone along the last few days.  The programs were more than likely targeting the spx levels today and since all the muni sellers just recently entered the stock market with fresh cash the down button will be pressed here shortly.  2 weeks ago insider selling hit a high and last week it doubled.  The only folks left now are the bagholders.

Mon, 02/14/2011 - 17:05 | Link to Comment RobotTrader
RobotTrader's picture

Gloom and doomers like Tom "Nobody in the store" O'Brien continue to get decimated trying to short stocks and pick tops.

Especially those picking high flying leading stocks with the most insane PE ratios and trying to short them.  They are getting their clocks cleaned, no different than 1999 - 2000.

Mon, 02/14/2011 - 17:21 | Link to Comment TradingJoe
TradingJoe's picture


you mentioned 1999-2000 well...remember what happened then? Guess what, it will 

happen again, despite POMO and all other "subsidies"!

And as usual, there won't be a "warning" either, just like Old Times:)) where all the

warnings you wanted where right in your face (NFLX AMZN AAPL etc)!

Mon, 02/14/2011 - 17:25 | Link to Comment lieutenantjohnchard
lieutenantjohnchard's picture

well well well ... old catfish mouth robo uber bull bear wanna be is once again poking fun at himself - calling himself a gloom and doomer - for trying to pick a top. i just read again your "contribution" to the board from 2 weeks ago where you waxed eloquent on your efforts to pick the top.

btw: haven't seen you weigh in on the decimation of the silver and gold bulls the past few days. i guess it was because you were busy schooling gentleman jim sinclair.

oh yeah: is gentleman jim a gold fool today, or a wise investor? check the wind outside and then get back with the board.

Mon, 02/14/2011 - 17:59 | Link to Comment alien-IQ
alien-IQ's picture

Robo...would you recommend to some that you cared for to go long any of those stocks if they did not have the ability to sit and watch it trade tick for tick day in and day out?


Mon, 02/14/2011 - 17:05 | Link to Comment chinaguy
chinaguy's picture

OT - relevant to PM market - silver

I've been trading w/ Tulving for 5 years...I've NEVER seen an offer (anywhere) to trade COMEX deliverable bars for smaller bars & the buyer picks up ALL costs....someone is paying a BIG F-ing desperate premium for Deliverable silver if they are baiting small fry like Tulving......

Posted on Tulving's site:

Trade Your 1,000 Ounce .999 Silver Bars For Your Choice Of Either
10 Brand New JM 100 Oz .999 Silver Bars Or 100 Brand New NTR 10 Oz .999 Silver Bars We Pay For Overnight Shipping And Insurance Both Ways

Mon, 02/14/2011 - 17:22 | Link to Comment tmosley
tmosley's picture

I saw that a while ago, but the buyer had to pay some premium.  The fact that the buyer isn't paying a premium any more speaks volumes.

Mon, 02/14/2011 - 17:33 | Link to Comment chinaguy
chinaguy's picture

Usually, there is a 30-40 cents/ounce premium for small bars vs. COMEX bars...yes this speaks volumes.

Mon, 02/14/2011 - 21:31 | Link to Comment nevadan
nevadan's picture

Tulving IS NOT paying all costs.  Look over in the nextbox.  You basically pay the spread for the privilege of trading your deliverable bars for new 100 oz bars.  It says ship us your 1000 oz, bars PLUS $750.  75c is roughly the spread on any silver in Tulving's inventory.

Mon, 02/14/2011 - 22:59 | Link to Comment chinaguy
chinaguy's picture

MANY THANKS I missed that & sorry for the dis-information

Mon, 02/14/2011 - 23:26 | Link to Comment nevadan
nevadan's picture

Hey, no problem.  I saw that a couple of weeks ago and made the same mistake at first too.  I assumed that it must be an indication of scarcity then, but after thinking about it for a while it looks to me like a great marketing ploy if you are Tulving.  First he gets the spread on the trade and then when he turns the deliverable bar he dinks the next guy for the sell side of the spread.  Assume that it is 25 cents and he has made $1000 minus shipping and the price doesn't even have to change! 

Mon, 02/14/2011 - 17:11 | Link to Comment ISEEIT
ISEEIT's picture

It's why I love ZH. Confirmation and credibility.Earned, tested, proven. Once known as walking the talk. I ain't so dumb as to think ZH is 100% but I also ain't so ignorant as to not appreciate the difference between lies and just being wrong. Compared to the machine, ZH is walking on water. This really is (IMO) a special place.

Mon, 02/14/2011 - 17:15 | Link to Comment BeerGoggles
BeerGoggles's picture

everyone go back to forex.

Mon, 02/14/2011 - 17:33 | Link to Comment alien-IQ
alien-IQ's picture

I've been trading nothing but Forex and Futures for several months now with no regrets. However...I do watch stocks closely and am always willing and able to jump into some puts on those rare days that the market takes a dive.

I just remember watching GS 150 (or was it 135?) puts rocketing 49,900% in a matter of minutes on one expiration Friday that the SEC handed down the fraud charges against GS. I missed that one. I don't want to miss the next one...and there will be a next one.

Mon, 02/14/2011 - 17:18 | Link to Comment Hephasteus
Hephasteus's picture

Maybe if they added stripper poles and like a million pop ups. Advertising that there is a share of ES available for purchase but only if you click now.

Mon, 02/14/2011 - 17:32 | Link to Comment John Law Lives
John Law Lives's picture

Hedge funds are buying munis:

I appreciate the contribution this site makes in its attempt to educate the masses.  However, the spectre of a "default contagion" in munis is off the mark.  It is not going to happen.  There will be instances of default (Vallejo, CA is a prime example), but default is rare for munis. Vallejo, CA was an extreme example of imcompetent city planning and management.  Munis provide essential revenue to municipalities.  If you believe that line in the sand will be breached and default contagion is forthcoming, you might as well bury your head in the sand and say goodnight.  I have owned munis as an investment class since the 1980s (I am not talking about muni funds - I own actual bonds), and I have never lost $1 to default... ever.  Don't bet on widespread collapse of munis as an investment class.  Munis are among the the last lines in the sand.

Mon, 02/14/2011 - 17:35 | Link to Comment alien-IQ
alien-IQ's picture

never say never...we live in strange times.

Mon, 02/14/2011 - 17:41 | Link to Comment John Law Lives
John Law Lives's picture

Yes, these are strange times.  I wouldn't advise buying munis all from one specific municipality, but I think they are about as safe as it gets if the issuer has a track record of demonstrating fiscal responsibility (i.e. unlike Vallejo, CA).

The stock market is an f'ing jike.  I don't know any educated person who doesn't think the market is not manipulated.  If the Fed turned off the cheap money spigot, the market buying volume would probably vaporize in nanoseconds.  The Ben Bernank has push the Fed so far into a corner that they probably have no choice but to keep the spigot flowing.

Good luck!

Mon, 02/14/2011 - 18:15 | Link to Comment A Man without Q...
A Man without Qualities's picture

"The Ben Bernank has push the Fed so far into a corner that they probably have no choice but to keep the spigot flowing."

Yes, I think this is their tactic to get QE 3, 4, 5 etc.  QE is a disguised bailout for the insolvent banks, but rather and admit this, they argue it's vital to maintain the health of the economy (aka the stock market) and they know that the decision makers are rich and getting richer off the back of it - it's just another form of stuffing cash in brown envelopes...

Mon, 02/14/2011 - 18:32 | Link to Comment onarga74
onarga74's picture

I'll side on the "bury your head and say goodnight." crowd.  Home ownership was nearly sacred until Graham Leach Bliley which turned a home into one piece of the 32nd tranche of a CDO bundle with no strings attached...just sold to the greater fool.  Read any of the reality pieces on this website and surely you would have to agree that there are several possible systemic events that once upon us will not be solved by the Fed goosing aapl every day. Most people alive haven't seen anything like this.  Real estate is not done going down in price. But interest rates are going up.  Muni's dont seem to be a flight to quality either.  A sudden demand for good ol cash won't be a respector of asset classes. Fond memories of the former President Bush and the worst adminstration in the history of the U.S. will be refreshed soon.  No use blaming the firemen for this inferno or having a flicker of hope with Bennie blowing our money (more debt) into the stock market.  Just like in the depression era...part 2 must occur.


Tue, 02/15/2011 - 06:17 | Link to Comment bs
bs's picture

Could this be a result of a significant weakening in ES correlation to currency pairs? For a while it was trading very close, and then everyone got aware.



Tue, 02/15/2011 - 07:36 | Link to Comment HUGE_Gamma
HUGE_Gamma's picture

I call blatant plagiarism by Felix Salmon.

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