Lowest Volume Quad-Witching Day Stick Saved By 1 Billion NYSE Share Spike After Close

Tyler Durden's picture

Another day demonstrating just how pathetic stock trading has become. Up until the close, the NYSE was on track to record the lowest quad witching volume in history. Fast forward to 1 minute after the close, and the machines kick in, sending in almost one billion shares down the frontrunnable chute known as the NYSE pipeline. Too bad most retail investors still don't understand that the only time when trading actually occurs now is after the market is officially closed. And even with the post-close spike, this was still arguably one of the lowest quad witching days ever.

Beforeclose:

After close:

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traderjoe's picture

Apathy and Disgust M'fers!

vote_libertarian_party's picture

25% of the days volume in one minute?

So what shares were bought/sold in that minute?

Sarah Conner's picture

You'd have to ask SkyNet's HFT operation to know what was bought/sold...

"... and the machines kick in..."

tyler's picture

Its funny to see the fools at cnbc take the market so seriously.

hamurobby's picture

Bloomberg Asia and Euro in the eve is more fun to watch than any of the US shows.

Cognitive Dissonance's picture

They're paid to take it seriously, regardless of whether is warranted or not. The owe, they owe, so off to work they go.

The only question is to whom they have sold their souls and how much do they owe, they owe, so off to work they go.

Problem Is's picture

"The only question is to whom they have sold their soul..."

To Jack Scratch, for:

  1. Rick Santelli: Some one to rant to...
  2. Steve Liesman: Some one to believe him...
  3. Cramer the Clown: Some one to revere him...
  4. Larry Kudlow: Some one to pontificate to...
  5. Maria Bartiromo: Fame, knockers and a Citi exec...
  6. Michelle Caruso-Cabrera: A chest big enough for success...
  7. Erin "Let'em Eat Lead" Burnett: Any chest (Jack is still working on that one) and clout...

And Jack Scratch has a deal for you CD...
Your soul for seven years of good fortune... So long as you do not ask to stay in any one moment...

drbill's picture

What isn't so funny is how few people out there actually look beyond CNBS to get their news and hence how ignorant they are of what's really going on...

vote_libertarian_party's picture

So how long is 'ever'?  How long has quadruple witching existed?

Fidel Sarcastro's picture

The ES (mini S&P) mostly traded in a 4.00-pt range.  Truly pathetic! 

Fidel Sarcastro's picture

Consolidated NYSE volume was 1.855 billion, an anomaly of Quad-day to be sure, but 1 BILLION came in > the close?

This market is BEGGING for another flash crash.  I can not wait. 

goldmiddelfinger's picture

I noticed 800mm+ at 3:57 but on any quad there is a massive MOC explosion.

NOTW777's picture

cnbc saying "embrace HFT or get left behind"

they call it "Technology"

embrace fraud?

sethco's picture

How TF does the average Joe Investor embrace HFT?

NOTW777's picture

cnbc working on new show for fast trading machines with digitized dialogue,

robot anchors

Sudden Debt's picture

1001100110010011100111110010100010101001110011010110101!!!

SpeakerFTD's picture

I count 8 sets of robot tits in there.  Almost competitive with CNBC.

More 00, Less 11!

 

snowball777's picture

I count 9, but one robot has three.

Hephasteus's picture

That's the code on Fry's ass to get to future profits from the past.

http://www.youtube.com/watch?v=2EXpYhJk7BI

Fire up the main Duper Computer.

Problem Is's picture

"cnbc working on new show for fast trading machines with digitized dialogue,"

CNBC will call this new show...

Paint The Tape!

Azannoth's picture

When HFT algos play http://en.wikipedia.org/wiki/Pong Joe the Investor is the Ball, thats how u do it

 

sethco's picture

so, learn to like taking it up the heinie

Geronimo66's picture

Nothing wrong in embrasing Quants!

A shame Quants get blamed for HFT while the firms are to blame. Bigger shame on you Tyler that you bring Quants down and blame them for HFT. We live nowadays in very complex and fast world were modelling is a great tool to get some perspective in this world. HFT is only a small part of a Quant job. Quants were pushed by firms such as Goldman to model CDO's with crap mortgages into something thats can be sold looking as a good investment.

Is Goldman to blame? Goldman took advantage of bad sub prime which were issued when George W Bush and there after Clinton tried to keep the economy going. Voters and sponsors want properity and not austerity. Bankers etc etc want bonuses. Greed in all layers of sociaty brought us were we are now. Great article of Mr. Pento!!

In my opinion we should embrace Quants but not the HFT. HFT has nothing to do with fundamentals nor economy. HFT sole purpose is to make buckets full of money for the firms.

Very nice documentary about Quants can be found on http://www.wallstreetoasis.com/forums/documentary-on-quants which gives a good perspective on Quants.

MichaelG's picture

"HFT sole purpose is to make buckets full of money for the firms."

And the purpose of quants is ...?

PS LTCM.

Voodoo Economics's picture

We love to PAINT our office tapes money green, even if we have to take the market red at the witches day end.

goldmiddelfinger's picture

Let the redemptions begin...........Bitchez

T Rex's picture

If it wasn't SPY what's the point?

Waterfallsparkles's picture

Did not want to bring prices down with all of their selling orders.  Have to do it AH.  Watched this happen before.

KidDynamite's picture

riiiight.  because after hours, they can magically execute all of their sell orders without moving the price, right?

 

it's just market on close orders. they are large today because there was a rebalance and options expiry today. it's got nothing to do with computers, algos, black helicopters, tin foil hats, HFT, or manipulation. 

Rick64's picture

Take a look at OXY and C in the after hrs. or right at the close almost everyday. there are many others with this pattern.

T Rex's picture

Futures are leaning that way but only slightly.

Pat Hand's picture

This is a quad witching day plus an S&P rebalance. Most of these are prints of VWAP trades, NOT "volume traded after the close".  Plenty of things to worry about but this is just silly misunderstanding of the markets

KidDynamite's picture

yes - just MOC orders, as a result of the quarterly SPX rebal.  Of course, it's no fun to look at the actual explanations for things - it's much more fun for Tyler to mis-educate the public and rally them into angry ignorant masses ranting about machines (which have somewhere between ZERO and NOTHING to do with the MOC volume). 

 

freshman's picture

Whatever price traded at 4:01 does not impact the moneyness of the tons of insurance contracts (aks options) sold by the "liquidity providers".

T Rex's picture

Bottom line, it's inconsequential?

Oquities's picture

in addition to the macro-market manipulation highlighted, i'm fascinated by how often my covered call options expire right at the money or 1-2 cents below strike.  been observing this for 25 years.  got into the bathtub with my laptop handy just in case i had to buy-back/cover, but i just should have kept reading my novel.

ZeroPower's picture

got into the bathtub with my laptop handy 

Umm...i hope your trading skills are more refined than your common sense?

Charley's picture

Another victory for the bulls...

Buck Johnson's picture

They are doing everything they can to keep the market artificially inflated.  With the bad numbers in housing and employment and others, we should be having multiple triple down days a week.  Irelands banks had a bad day today and are on the way of Greece and we still have a "up" day.  You are correct, most of the trading seems to take place at the end of the market day in just a few minutes.

BearShitWoods's picture
Man Vs. Machine: The New Kings Of Wall Street

http://www.cnbc.com/id/38990334

 

Orly's picture

I have an idea: how 'bout we go all 4X on their ass?  Have the market open 24/5 and that's it.  There is no "after-hours" trading.

Problem solved.

Herry12's picture

I found lots of interesting information here. I love zerohedge.
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