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Fitting End To 2009 Trading: Big Volume Sell Off

Tyler Durden's picture


It was only fitting that a year marked by irrational and erratic trading, saw a substantial volume selloff in the last 15 minutes of trading after there was absolutely no volume done all day. What sparked it? Only a few momentum chasing quants know, even as the bid seemed dangerously close to getting unglued. Suddenly all the big-cap liquidity provisioning seemed just a tad tenuous. Another way of looking at it: a cheap appetizer of things to come. Is the January 4 rush for the exits entre next?


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Thu, 12/31/2009 - 17:44 | Link to Comment Stoploss
Stoploss's picture

Im looking for the ninth myself. So, it will probably be monday. With my luck.

Fri, 01/01/2010 - 00:48 | Link to Comment Anonymous
Fri, 01/01/2010 - 19:28 | Link to Comment RockyRacoon
RockyRacoon's picture

Thanks for your post, would like to hear more from you.  I guess you've discovered that you can post a new comment by going to the bottom of the page.

Best of 2010!

Fri, 01/01/2010 - 23:06 | Link to Comment omi
omi's picture

The answer to your dilemma is when hedgies selling off emerging markets, they are buying SP.

And although the overall index was flat, there was huge sector rotation throughout NOV and DEC.

Why must the market ALWAYS sell-off on bad news?

News have effect on the market from time to time. Generally, the two are not correlated. I've see the market sell-off and burn hydrazine on no news, bad news and very good news.

Again, indexes and currencies are not always correlated. Don't be a fool. In fact, it's scary when there's a perfect correlation in all asset classes.

Leave HFT out of it.

Thu, 12/31/2009 - 17:46 | Link to Comment Altan311
Altan311's picture

The real question is how many hedgie brats and banker boobalas are going to knock off their parents to take advantage of that great death tax repeal?

Thu, 12/31/2009 - 17:59 | Link to Comment jmc8888
jmc8888's picture

I guess a little joking, that might be not their parents, but their kids.


Remember, it's their kids who are more in debt.


It would be a bit ironic, if we wanted to think darker than reality, and say they did this so they could kill their parents.  Well it may back fire, and their 20-30 year old kids will be killing their 40-60 year old parents.  Not the 40-60 year olds killing off the 80 year olds.


But if my name was George Herbert Walker Bush, I might be scared.


Just an ironic twist, darker than reality, but something to ponder.





Sat, 01/02/2010 - 10:58 | Link to Comment Anonymous
Thu, 12/31/2009 - 17:48 | Link to Comment Anonymous
Thu, 12/31/2009 - 17:49 | Link to Comment cougar_w
cougar_w's picture

Hard to say. Maybe cashing out shares-as-bonus for the income tax year. Maybe insider trading at the end of the last favorable calendar quarter ...  Q1 2010 could be a ball-buster for retail.

Thu, 12/31/2009 - 18:00 | Link to Comment digalert
digalert's picture

You'd almost think there's a lack of trust.

Thu, 12/31/2009 - 18:04 | Link to Comment Anonymous
Thu, 12/31/2009 - 18:07 | Link to Comment Anonymous
Thu, 12/31/2009 - 22:25 | Link to Comment delacroix
delacroix's picture

faz was down all day, even at dow-100, it only came up, with the last 18 point decline.

Thu, 12/31/2009 - 18:09 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

Maybe it is in the wind that the SEC will finally stop the HFT trading.  Without the Frontrunning of the HFT Computer it will be almost impossible for the Major Players to hold the Market flat without volitility as you will reintroduce Human emotions into the Market.

There also may be some concern about how much money the FED can continue to throw at the Market to keep it up and flat.  At least the FED kept the Market up to maintain the Wall Street Bonuses for this year.

I think that next year is a question mark.  Although, if the Congress raises the Debt ceiling by 1.9 Trillion, I am sure the FED will continue to throw Money at the Market to continue the Banks profits.

The Market is so Bogus right now with the HFT front running Computer trading and the FED's intervention.  It is so displaced from reality and not reflective on what is actually happening in the real world with the People in America.

All of the numbers reported from unemployment claims, GDP and all other numbers are not reliable they all get revised to less favorable numbers after initial realease.

So many Floor Traders have been out of the Market since October.  Why?  They do not believe in the Market or the Trading.  They took their Money and ran with their profit for the year.

If anything for this year I really hope they dismantal Hal the HFT Trading platform.  I truely think that this is an illegal form of frontrunning and has forced all of the big player to Dark Pools in an effort to avoid the HFT trading.  At this point no one can trust the open Market. It appears that the current open Market on the exchange is only to front run Retail Investors as all Instutional Traders are in the Dark Pools.

So, in summary that is why I think everyone vacated the Market in the last 15 minutes.  A signal for things to come in my opinion.

Thu, 12/31/2009 - 18:15 | Link to Comment Anonymous
Thu, 12/31/2009 - 18:17 | Link to Comment Brian Griffin
Brian Griffin's picture

The bigger question - how does Mr. Durden ring in the new year?  A case of Budweiser? 

Thu, 12/31/2009 - 19:01 | Link to Comment assumptionblindness
assumptionblindness's picture

Goldschlager, bitches!

Fri, 01/01/2010 - 01:06 | Link to Comment Problem Is
Problem Is's picture

Newcastle Brown, Eel River Amber Ale or Lost Coast Downtown Brown. Your choice out here...

Fri, 01/01/2010 - 01:06 | Link to Comment Anonymous
Thu, 12/31/2009 - 18:18 | Link to Comment Hansel
Hansel's picture

I think the Fed sold the market down at the end to give bears a glimmer of hope which they can have wet dreams about for the next 3 days after which it will be SSDD.

Thu, 12/31/2009 - 18:22 | Link to Comment wgpitts
wgpitts's picture

Probably a Fed surrogate liquidating some positions to have more cash to manipulate things 1st week of January to convince everyone of the success of the Brave New World...

Thu, 12/31/2009 - 18:27 | Link to Comment john_connor
john_connor's picture

Long bonds and oil are weighing on the common equity garbage. 


Thu, 12/31/2009 - 18:32 | Link to Comment Anonymous
Thu, 12/31/2009 - 18:33 | Link to Comment Anonymous
Thu, 12/31/2009 - 21:04 | Link to Comment Landrew
Landrew's picture

Hot job numbers? Are you forgetting the EUC is killing 200k from the roles? Fed  emergency unemployment isn't counted in the weekly unemployment numbers. The BLS U-6 number is 17.2% that isn't good! Retail will be killing jobs at a record pace, friends have already been axed.

Fri, 01/01/2010 - 01:13 | Link to Comment Anonymous
Thu, 12/31/2009 - 18:33 | Link to Comment geminiRX
geminiRX's picture

I will believe the sell off when I see it. The game is rigged boys and girls - markets are no longer "free". Happy New Year Amerika

Thu, 12/31/2009 - 18:40 | Link to Comment Racer
Racer's picture

And already the out of hours lot have pushed the futures back up again

Thu, 12/31/2009 - 18:46 | Link to Comment Anonymous
Thu, 12/31/2009 - 19:00 | Link to Comment Anonymous
Thu, 12/31/2009 - 19:04 | Link to Comment RobotTrader
RobotTrader's picture

From shorty over at Cap Stool...


Thu, 12/31/2009 - 21:16 | Link to Comment David449420
David449420's picture

Sorry, but there's only one possible caption for that chart. - Fat Lady Sings.

Thu, 12/31/2009 - 19:07 | Link to Comment RobotTrader
RobotTrader's picture

Still no decision yet.

Financials were unfazed from today's selloff.



Thu, 12/31/2009 - 19:07 | Link to Comment SRV - ES339
SRV - ES339's picture

OK, so HAL 9000 left early to get ready for a hot date tonight and "dropped the ball" this one time... come on, we've all been there! Hey, have a good one HAL... get some rest for Monday though, could be a rough one!

Fri, 01/01/2010 - 15:29 | Link to Comment buzzsaw99
buzzsaw99's picture

OK, so HAL 9000 left early...

Exactly. The HAL 9000 #1 automatic shutoff clicked over fifteen minutes early, the HAL 9000 #2 had no-one to trade with and blew a circuit. That's all it was.

Thu, 12/31/2009 - 19:26 | Link to Comment Anonymous
Thu, 12/31/2009 - 19:37 | Link to Comment ZeroPower
ZeroPower's picture

Was there some particular news at 330?

Thu, 12/31/2009 - 22:59 | Link to Comment Chopshop
Chopshop's picture

No news

But there were actual trading signals that both directly and immediately presaged the 'random' tank as well as secondary signals / setups before and after the cash close.  Very easy ones.

15:36 bar registered a new LOD (low-of-the-day) for the NYSE TICK ... anyone remember what that often begets ?  bueller ??

True Trading Tips: High-Probability Intra-Day Scalp Setups Using the NYSE TICK

Will likely post a workup manana eve with pics and much greater anal-ytic detail of actual substance.

This technical analysis thingamajig actually just might have something to it.

There really is a rhyme and a reason … a group of dark boogie-men hiding in the closet do not control financial markets. 

And if you must think of HFT as the Night Man ~ a plague hiding in the darkness just waiting to getcha ... then at least try to think of TA (technical analysis) as HFT’s kryptonite  ~  the Day Man ... fighter of the Night Man. Champion of the sun. He’s a master of karate, and friendship; for everyone.


Thu, 12/31/2009 - 20:16 | Link to Comment Kreditanstalt
Kreditanstalt's picture

Someone said minor.  I think the best we can hope for is a gentle drift downwards over the first week of the new year only...until the next set of massaged stats or wads of lucre arrive...

Thu, 12/31/2009 - 20:21 | Link to Comment Anonymous
Thu, 12/31/2009 - 20:24 | Link to Comment wang
wang's picture

Dec 31 6pm est

Fed Discusses Limited Bond Sales to Withdraw Stimulus

Dec. 31 (Bloomberg) -- Federal Reserve officials are considering a proposal to schedule limited sales of bonds from the central bank’s $2.2 trillion balance sheet...

Thu, 12/31/2009 - 23:34 | Link to Comment ahab
ahab's picture

from the link-  this cracks me up-

"Chairman Ben S. Bernanke is trying to wind down emergency stimulus programs that helped avert a second Great Depression"

ok then- guess the coast is clear- all handled now- problem solved- lol


Fri, 01/01/2010 - 00:00 | Link to Comment Reductio ad Absurdum
Reductio ad Absurdum's picture

Makes you wonder if the liberal mass media would ever print something like, "Bush's emergency involvement in Iraq that helped avert a third World War."

Fri, 01/01/2010 - 00:02 | Link to Comment Reductio ad Absurdum
Reductio ad Absurdum's picture

From the article wang linked:

The Federal Open Market Committee discussed asset sales at its November meeting, with some members in favor and others warning that it would cause “sharp increases” in longer-term interest rates, according to minutes of the meeting released Nov. 24.

So a fed meeting held in November and its minutes, also released in November, caused a massive last half hour decline in the markets on Dec. 31?

Thu, 12/31/2009 - 22:03 | Link to Comment Anonymous
Thu, 12/31/2009 - 22:06 | Link to Comment mrmortgage
mrmortgage's picture

Happy New Year. Have a Prosperous 2010. Check out the Blue Moon Tonight. Once every 19 years.

Thu, 12/31/2009 - 22:36 | Link to Comment E pluribus unum
E pluribus unum's picture

Don't believe evrything you read on the "internets". Blue moons occur every 2. 7 years

Fri, 01/01/2010 - 00:03 | Link to Comment Reductio ad Absurdum
Reductio ad Absurdum's picture

He meant New Year's Eve Blue Moon -- next one in 19 years.

Thu, 12/31/2009 - 22:14 | Link to Comment Anonymous
Thu, 12/31/2009 - 22:37 | Link to Comment Anonymous
Fri, 01/01/2010 - 00:13 | Link to Comment Grand Supercycle
Grand Supercycle's picture


I warned of an impending stockmarket crash in early 2007.

I confirmed a bottom in April 2009.

I warned of an impending USD rally in July 2009.

DOW / SP500 bearish warnings on the daily chart continue and recent market action is bearish. 

The Weekly trend remains neutral to bullish: ie a mild uptrend.

When the weekly chart rolls over, we will have confirmation that the March 2009 bear market rally has finished.

Fri, 01/01/2010 - 10:27 | Link to Comment Anonymous
Fri, 01/01/2010 - 00:44 | Link to Comment steve from virginia
steve from virginia's picture

Silly humans, bear knows why market collapses; oil price near $80 a barrel.

Oil over $35 destroys all economies. Oil @ $80 destroys faster.

Fed policy is full of shit. Economists full of shit. Inflationists full of shit. Economic policy now made in Saudi Arabia, not in Washington, certainly not by some tiddly- wink investment bank.

Dollar is now super- hard currency; backed by oil not gold. As oil is depleting and very expensive, it is also sublimely deflationary. Nothing can be done to reverse trend. Please be smart and close out dollar short trades now or face unpleasant consequences.

I leave now.

Fri, 01/01/2010 - 03:42 | Link to Comment dnarby
dnarby's picture

You should change your handle to "Lrrr"


"I am Lrrr, ruler of the planet Omicron Persei 8!"


Fri, 01/01/2010 - 01:15 | Link to Comment Anonymous
Fri, 01/01/2010 - 12:58 | Link to Comment Cyan Lite
Cyan Lite's picture

It was December quarterly options expiration on the SPY.  There was a shitload of $112-strike calls sold so they had to get the market to close below that to make good on their trades. Nothing to see here, move along.

Fri, 01/01/2010 - 13:45 | Link to Comment ghostfaceinvestah
ghostfaceinvestah's picture

Nice work by the Ministry of Information, they've even got to the private companies to go along.

CHICAGO (Dow Jones)--The Institute for Supply Management-Chicago on Thursday released recalculations of the seasonal factors for the components of its headline business barometer. The new data, also known as the PMI, show Chicago business activity was weaker in December than had been reported Wednesday.


Fri, 01/01/2010 - 22:21 | Link to Comment Anonymous
Mon, 01/04/2010 - 11:20 | Link to Comment Anonymous
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