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Knight Trading Reports July Average Daily Share Volume Lowest Since April 2009
For a firm which describes itself as "the leading
source of off-exchange liquidity in U.S. equities and [has] greater share volume than any U.S. exchange" , "share volume", as one can surmise, is the lifeblood of the firm. And should there be a dramatic drop in "share volume" it means that both revenue, as well as the general volume of other exchanges must be very low, since Knight is presumably a good proxy of trends elsewhere. Which is why when we pulled up Knight's recent trading volume we were rather surprised by the dramatic plunge in stock trading over the past 4 months. After hitting a near record in April of just under 16 billion daily average shares, volume has since plunged to 7.4 billion, or the lowest since last April, when it was a mere 5.9 billion. And no, this is not merely the seasonal summer slowdown: last July Knight did an average of 10.2 billion shares, thus July 2010 was a 27% decline in share volume. But one doesn't need to look far to confirm this: a casual glimpse at the NYSE daily volume, or the ridiculous moves in stocks on vapor trading when a block of SPOOs can move the bid ask by a quarter of a dollar, are sufficient to demonstrate just how fragmented the market has become. This merely reinforces our observations that in addition to pulling capital out of equity mutual funds, retail investors and increasingly institutional ones, simply refuse to trade. Luckily our message that the market is (at least for the time being) broken has finally been heard far and wide. And to all those who think that based on a series of lucky coin tosses, they can outwit an irrational and chaotic system, we wish them all the best.
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Well, we are getting a new "One Dollar Bill" after all.
http://www.moonbattery.com/archives/2010/08/moonbat-money-1.html
I wonder how long before that 1 has fifteen 0's after it.
I don't know, but rumor has it, Steam Power is making a come back.
http://www.enterprisecorruption.com/
Looks like fun!
LMAO!
The retail investor has left the building........
I just talked to a real estate agent who lost his retirement in worldcom. He never again invested in the stock market, he invested in flipping homes. He lost his retirement again and is never investing anything, ever again.
Tired of the markets? Best friggin' investment on this planet is ammo + mags (AR, AK, etc.) I'd put my money where my mouth is, but the wife would probably kick me out of the house.
Looking to add an AR to the small collection as well. Better addition than my stock picking, like buying SRS last year, which I regret that I still hold against better judgement and reasoning.
This was my most recent addition. Ridiculous, huh? But nothing cheaper to shoot or more terrifying to hear racking for an intruder...
http://www.mossberg.com/images/home/50591.jpg
I think it needs a buttstock but otherwise a fine piece. Lot's of good ARs out there now. Generally hold their value well and the value could double with the stroke of a pen.
Still, AR mags at $6 is the biggest no-brainer in the world, even if you don't own the rifle. They also make great stocking stuffers.
If I'm so paraniod, why do things always turn out worse than I thought?
I'm very proud of ZH for reaching the masses on this topic. ZH, currently breaking down and redefining the "mainstream".
It's about time people refuse to play. Quite honestly, this is a good thing because there is becoming far fewer sheep for the wall street scum bags to sheer. People not having jobs or money may also have something to do with the fact that no one on earth is opening any more brokerage accounts and cashing in the ones they had. The quicker the financial system collapses and the market breaks for good the better off the world will eventually be.
jbc, Unfortuantly that is what will have to happen before the SEC does anything about all of the Criminal activity in the Market.
Amazing, HFT was the greatest thing since sliced bread for the Big Brokers. they made tons of Money but it drove everyone out of the Market. And, as you say there a fewer sheep to sheer. They cut their own throats out of their Greed.
check out spy intraday chart 11:31 am
"...simply refuse to trade..."
I'll tell Timmy G. you said that!
:-))) ...
i'm suprised we arent UP 2% today on low volume. Is the PPT on vaca today?
Chart: GC
Folks may be ditching equities but they're buying gold.
http://www.screencast.com/t/ZjQyMmI0
Looking at the Knight Graphic, it appears they were doing very small volumes Aug 08 to Dec 08, compared with 09 and 10. Something's not right there, volumes were off the clock Aug 08 to Dec 08, even if it was one way...
If the object of the FED was to instill confidence in the capital markets by manipulating them behind the scenes, history will show that they have had the opposite effect. The investor won't come back. They are going elsewhere or nowhere at all.
Even the sheeple eventually wise up after the rigged casino fleeces them enough times
Fidelity and others report record 401K hardship withdrawals http://www.msnbc.msn.com/id/38783832/ns/business-your_retirement/
As i surmised, this isn't just a "conservative revolution" or a general strike. This is depression economics. What should be most concerning is that, unlike a protest against HFT, the money can't just flow back into stocks if the problem ever gets addressed. That money is going to groceries, gasoline, electricity, wireless, happy meals...and is NEVER flowing back to investments of any kind. Gone with the wind....
Caviar, Great point. Money will have evaporated into thin air never to return.
Well, it was never 'real' in the first place. This begins to feel like I have put a pair of glasses on that finally work properly
Is it just me, or is that volume chart starting to shape up to look like the CSCO logo?
As an observer (non-participant) of the equity markets and an ardent follower of ZH almost since its inception, I am curious and hope someone can help me understand. How do markets "crash" if there are only sellers and no buyers? What is the mechanism that takes prices lower if nobody is there to buy at the lower prices? Is an actual crash the result of violent and overwhelming shorting? A prominent theme on ZH has been the "slaughter of the shorts" by "robo traders, PPT, etc., that has consistently characterized the the ramp since March 2009, thus thwarting the market's downward potential.
There are certainly a lot of details like that to take into consideration.I read and understand the entire article and I really enjoyed it to be honest.
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