Europe Opens With A Mini Flash Crash

Tyler Durden's picture

No volume, deranged computers, and a rate hike: Europe's mini flash crash refutes the market's "welcoming"
of liquidity withdrawal to Goldman's now traditional embarrassment.

Dax futures...

...and IBEX futures

From Serenity Markets:

An extremely nervous market drops hard and I fear that this morning we saw another mini flash-crash. The low volume of Christmas, compounded by
the closed London market, and negligible volume, is making program trading far more obvious.
Here is the true essence of the market: machines everywhere. As can be seen on the chart above, the Dax futures minimum of 6915 was hit on almost no volume. For the machines it is very easy to create a genuine flash crash. It is very important to keep this in mind as a demonstration of how easily a machine can sweep a stop.

Goldman is partially right: the Chinese rate hike is welcome by at least one market participant, as Euronext and  a few European HFTs just took out all the limit stops to the downside and made a killing on the round trip.

h/t hugovanderbubble

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Popo's picture

Translation: "Oops. Spilled my Starbucks on the HFT 2000.  'Had to reboot the damn thing."

yabs's picture

what a joke of a market

hugovanderbubble's picture

All the forum

Please watch the SPANISH 10 yr the key for a sell off

Above 7% = EURO CRASH ---IMF spanish Intervention

Quicksilver's picture

Nobody expects the spanish intervention!

Problem Is's picture

"what a joke of a market"

But it's not funny...

dukeness's picture

Waddell & Reed Bitchez!

Problem Is's picture

European Market Comment
"Warum Junk über die Amerikaner Waddell und Reed?"

Why in the name of Xmas spirit would you <JUNK> dukeness?

malikai's picture

The same shit happened with oil when futures opened at 00:00. Perhaps to a little bit less of an extent. Fucking weird shit going on..

hugovanderbubble's picture

Remember also one thing

25-26 /dec _TURNING POINT


Today is the first available day for apply Bradley Turning Point

Four seller least...

I expect SP 1228

*Sell DJTransportation Members

*Long Medical Services & Hospitals

SheHunter's picture

Morning All.  Quick yes or no question:  when stops are triggered by flash crash (FC) are the resulting sells/buys that were initiated by the FC later canceled?  I think not- but have read nothing that clearly states otherwise.  thnx

jeff montanye's picture

i seem to recollect that in the flash crash and afterward some were, some weren't.  again rule of men not law.  others probably have greater mastery of detail.  help?

SheHunter's picture

Googling the question brought up the same conclusion:  sometimes yes sometimes not.  but your rule of men not law phrase about sums it up.  Moral:  tread nimbly in market.

doolittlegeorge's picture

Gold finger...he's the man, the man with the Midas Touch!

Ese Pinche's picture

It depends on the exchange used to execute the trade.  Different ECNs/floors have different "rules" for busting a trade.  So... some were broken some were not.  The "rules" each ECN uses to determine whether or not to break a trade vary from ECN to ECN and are not published in their entirety.   They do this to keep quants/traders from "gaming the system".... bhahaahah...  Funny isn't it. 

SheHunter's picture

..."Funny isn't it".

Hilarious.  especially if you are one of those trusting souls taught to place stops on your positions.  nimble is spelled n-i-m-b-l-e.  In and out.  In and out.  Do not linger overnight. 

squexx's picture

What's the matter with those Europeans?!? Don't they know to just buy the fucking dips?!?

Highrev's picture

The IBEX basically went no bid AND no offer with up to a 40-50 point range on the bid-ask (what was left of it). Very similar to the 8:30 AM Eastern news events of importance, but in this case it came a little out of the blue first on an opening range breakdown, second on a recovery and gap fill attempt (0.2% gap lower on the open), and then a retest that failed and went to new lows.

The key was that market participants on both sides simply withdrew.

Highrev's picture

Same thing at the same time in the S&P futures by the way. 

Treasuries and USD currently favor higher equity prices. Wouldn't be surprised if this morning's lows turn out to be the lows of the week.

AUD's picture

Gold dropped 10 bucks out of the opening in Asia this morning. An hour later it was about back where it started. Just some fools getting fleeced, thinking that a rate rise by the PBoC was going to somehow make its 'money' better.

Problem Is's picture

You Got <JUNKED> For Saying Nothing
Wow... The ACLU has a Mute Civil Rights case going here...

RockyRacoon's picture

Junk for nothing... must be a new Zen thingy.  Gotta look into that.

Or, can one look into nothing?  Ooh.  I need more coffee.


100% no chance of crash here! Just buy the fucking /ES.

hugovanderbubble's picture

Sell anypop...its another way to  trade this farce...

David99's picture

Economy China expects exports to slow in 2011

China's foreign trade is expected to slow down in 2011 to a growth rate of about 10 percent, compared with this year's 30 percent, sources with the Ministry of Commerce said.

Which means, 20% less imports from miners plus 10% effect due to "prudent policy" = 30% less demand

Downtoolong's picture

My pet line for 2011 (which I admit I stole from a Bloomberg journalist in 2008) is going to be, “There are no more markets, just manipulations”. I didn’t realize I was going to have so many opportunities left to use it in 2010.

VeloSpade's picture

How clever and original you are indeed...NOT.

maff's picture

Thats novel - a comment that is more appropriate to the commenter

Problem Is's picture

Ms. Jarrett wants to see you in her office...

brandy night rocks's picture

Did you just use the most tired, overused, ridden-harder-than-Paris-Hilton cliche from the 90's to emphasize your point about how unoriginal someone else is?


Wow.  Mad snaps, yo.  Or maybe awesome use of irony.  I can't tell anymore.

VeloSpade's picture

Yes, and my hat is still better than yours.

hugovanderbubble's picture

+1 downtoolong

Completly agree

broogy's picture

PRODIGY described it best:
"Minefield" Lyrics:
This is dangerous. Open up your head feel the shell shock.
This is dangerous. I walk the mindfields so watch your head rock...
I walk through mindfields ha ha ha ...
I walk through mindfields so watch your head rock

David99's picture

Just look at the chart below

Year 1900 = 3.05 % of GDP spending
Year 2010 = 43.85% of GDP spending

And it has nothing to do with FED's spending

VeloSpade's picture

How about a few words to briefly explain your point and link?

sushi's picture

The explanation is that there is an upside of 56.15% of GDP still to be filled by further government spending.


One way to fill this spending gap is to hire enough civil servants so that every bus and subway car is staffed by at least two uniformed inspectors who can grab your junk before boarding and again on departure.

MsCreant's picture

Another way to fill it is to hire people to go on blogs and disrupt discussions that might have an anti-gov bent to them.

Problem Is's picture

LOL. Full (Part Time) Employment Policy....

Your Corporate owned Government in Action.

Hephasteus's picture

Membership has it's privelages. I've got 30 lash bucks on my MasterCard.

clawsthatscratch's picture

LOL....looks like Velospade has already been hired

VeloSpade's picture

Don't need to pay me to grab someone's junk... female that is.  I see a hot snatch, rack and cooch, I'm goin all in.  No payment necessary.

zero-g's picture

I can across the figures before, I'd have to dig it up the source, but the CIA/DoD etc has a black budget of either 300 or 900$ million per year for people to infiltrate, disrupt, and steer groups, organizations, forums, both online and in real life.

It becomese comically easy to spot the plants, when across all sorts of forums and message boards, they use the same tactics. Take it as an indication that zerohedge has gotten a bit of attention, as there have been alot of these trolls as of late.