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Market Goes Postal With 12 Handle Move In One Minute As HFT Momentum Algos Go Batshit
The kneejerk reaction to the completely unsurprising FOMC statement was down... Which is why the corresponding 12 handle move up in the ES is perfectly understandable... as long as one understands that our market is totally broken. 12 handles in 1 minute as the market went offerless! Have fun with that. As we noted earlier, ignore the record low new home sales number: the algos will not let this market go until they melt it up to some level which Obama believes is sufficiently high to sneak at least 4 or 5 congressmen and senators in at the midterms. Good work computers - once again you have thrown out any marginal homo sapiens investors as anyone who doesn't think in binary has now lost all faith in stocks for good.
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I'm glad someone noticed.
I think I need to upgrade my CPU to handle this automated bulls**t.
yeah... pretty sure I noticed the 12 handle sprint... just barely noticed it though
Hit any key to start.
hehe, jam the EUR/USD just as BB is going blah blah blah.
Homer...baby. It is all about connectivity not CPU speed when wanting to keep up with the HFT, your high speed dial-up just won't cut it.
Enough of standing on the sidelines. I am entering.
The funny part is, the spike isn't lasting very long, either..
Ok, I am exiting.
lol
Speaking of which.. the huge spike is adiosed.. like BP's chances of completely cleaning the oil spill by this summer..
have they cleaned Valdez yet?
That made me laugh
Unreal. Absolutely unreal.
This is your life!
It doesn't get any better than this.
Built on fucking sand.
We are so close to another flash crash. Big boys are trapped. Who sells first?
The only way out for the Big Boys is for the Biggest Boy (Feds) to be the bagholder. Just like for all the toxic debt...
Musical chairs, but the traditional retail bagholder is refusing to play now, and nobody knows quite what to do.
True! My brokerage has never been so active in trying to lure me into the water with all incessant flood of emails and invitations to conference calls, etc..
I am now expecting them to get nasty by setting minimum number of trades, base fees, etc..
When is the recoupling from yesterday going to happen?!
Nursing a trade that almost recoupled and then went ballistic this morning. Not a good feeling.
Dave - Shit HAL, you triggered too much too quick. People will know it is a rigged market.
HAL - Dave, it will convince the sheeple to jump in that the FOMC statement was actually a positive.
BaZooooooooKaaaaa!!!
That last pump just cost you, the taxpayer, another $100 Billion. Just put it on sonny boy's tab!
Maybe it was one of those speech recognition-based HFT systems you posted about yesterday? The Fed used one too many adjectives, which was dutifully amplified by the press, then mechanically amplified by the HFTs, then mathematically amplified by 30 to 1 leverage. Makes good sense to me!
But will it break higher from here, that is the question.
It's those nested FOR loops gettign away from them. Also they did nor perform sufficent code validation when they implemented the AI modula for reading Analysist news.
The good news?: Skynet has a weakness!
They used the "classic" development method?
+1, and dont forget:
8. Charge customers maintance contract for upgrades.
OP's cited move consumed eight not one minutes, and this move seems to me more the act of a very large manual prop trader than several bots; indeed this large manual trader seems to be intent on busting the bots.
7 min. in the ES.
Made me think of a Cyclops fer some reason.
Maybe Ulysses battling with tha skeletons.
Schizoid selling opportunity. Mr. Market is ready to be committed.
What a gift! Thanks HFT Squid!- (There was nothing bullish in that announcement...)
In response to yesterday's posting on AI for reading analyist ratings, it is clear the Algos have not been able to translate FED speak (yet). This is proof.
They had to put new batteries in the C-64 at some point.
512K 5.25" Floppy Bitchez!
They are just trying to keep it from going too low in one day. Avoid the panic. They are controlling both sides.
There is nothing wrong with your market. Do not attempt to influence the quotes. We are controlling trading. We will control the meltups and the meltdowns. We repeat: there is nothing wrong with your market. You are about to participate in a great adventure. You are about to experience the awe and mystery which reaches from the inner mind to... The Outer Limits...
This is how NYSE should begin every trading day.
Risk-on/Risk-off is now decided within seconds. Humans are irrelevant.
LOL. Forget this "yesterday" crap. For the algos, it was a nano ago.
BTW, we may have just started the "Big Fall".
I still think we got a couple of months, put me down for a hay penny on Aug 15th - Oct 15th.
Two thousand quatloos...
Now Tyler, you know circuit breakers only work in one direction.
"There is nothing wrong with your television. Do not attempt to adjust the picture. We are now in control of the transmission. We control the horizontal and the vertical. We can deluge you with a thousands channels, or expand one single image to crystal clarity and beyond. We can shape your vision to anything our imagination can conceive. For the next hour, we will control all that you see and hear."
We are now at "Peak Oil". But not the one you think: it's all downhill for oil consumption from here as oil will be shunned and vilified as "toxic" and dangerous. ANY alternative will be favored, even non-green and non-renewables. Including nuclear, coal, gas , propellers, windmills, hamster treadmills ANYTHING.
It's The New Peak Oil
I don't think so, economics will out. otoh, might not be enough time to get new "green" projects commissioned and on the bars and to have the 4x or so price difference matter. But solar might not make it even that far:
http://online.wsj.com/article/SB1000142405274870462980457532483131270346...
Even federal guarantees might not be enough for this fraud.
- Ned
holy short-sighted assessment batman
Hamster treadmills??? Too damn funny! "Hey, we put RedDog in his water, he got up to .002 watts!"
is total bullshyte sustainable?
i think the crash from which there is no bounce will take all of 20 minutes
....or less
TD-- how is the 3 PM decoupling looking?
If they weren't pumping the market via the currencies, then we would have had a Flash Crash today. That's what they're scared to death of.
Imagine if the market were down 350 points on the Dow in addition to the bad news in housing: that would indeed CONFIRM the double dip and result in further market sell off waves. The whole of 2008 would start again.
So it's extend and pretend, or as I call it "Keeping up appearances"
Right. And we're all Richard Bucket (boo-kay), the simpering husband who knows his wife is an idiot but does nothing about it.
You got that one right ;)
Bouquet residence. Lady of the house speaking.
You are correct my friend..."somebody" is pumping the Forex to maintain positive correllations and the amount of proping is now total.
Plus look at the low volume...real people are gone and it's just computers trading on algo's and they can be gamed more easily than their "emotional programmers".
Earth to Major Tom.
Take your 'happy' pill and put your helmet on. Zooooom!
....Tell my wife I love her very much....
we know major tom's a junkie, strung out in heaven's high hitting an all time low.
She knows...
Formulaically:
a(Bullish Adjective used by Fed) X b(Media Overstatement) X c(Algorithmic Comparison Executed) X d(30 to 1 Leverage) X e(interest rate) X f(millions of trades per millisecond) X g(other nonlike competitors in market) = rate of return for SPY
Note: e and g have value of zero; f has ostensible value of infinity (speed of light)
Anything multiplied by zero = zero, hence the output of the equation is void.
The economy is broken, the Fed is irrelevant.
Nevermind. Trade on...
Awww, so you mean it won't work? You so strict. Okay, let's tinker with that HFT formula again... let's see, nonlike competitors and interest rates, limit approaching nil... so maybe I should add them then, instead of multiply... there! That does it. Now I'll turn it loose again. It's been offline for ten minutes already. That's a trillion or so shares I could have traded!
Actually... Depends on 2 parts of the equation:
How fast are you going to zero and how fast are you going to infinity.
One will dominate the other (or create a new limit like...42, or 0 or Infinity.) and it will approach that limit.
You can't do any better than speed-of-light? Slacker.
* Prepare ship for light speed.
* No, no, no, light speed is too slow.
* Light speed, too slow?
* Yes, we're gonna have to go right to ludicrous speed.
just wait till direction bias is switched the other way!
Jesse has it right.
No major decline until after Uncle Stupid IPO's his GM shitpile.
They are predictable.
Since the Fed stopped buying Junk Mortgages and the like (QE) in March 2010, the rallies have not been holding. The bulls have no power, and eventually they will be broken. The flash crash as a strong clue of what's to come. Looking back, it will be seen as obvious.
I heard the market zoom may have resulted from a rumor regarding QE2. Stay tuned, folks!
short paper gold, short euro......i'm scurred
The stock market always zips both ways after a Fed announcement. Always. Gives the specialists (okay the HFT computers) a change to run the stops, or put on shorts at highs, and they can blame it on the news, even when the news is nothing new.
Yup--it's all about the HFTs scalping the longs and then scalping the shorts due to the inequality of information (ie HFTs have more info than retail sheeple investors).
when the Fed speaks they always jam the market higher , i think too many people now realize that and are just waiting on the sell button
Tiiimmay - Keep pumping it, I think we are getting somewhere.
BennyBoy - I'm pumping as hard as I can!
Tiimmay - Buy Euro's, sell Yen.
BennyBoy - The printing press is running out of ink!!!
How will this end? Stay tuned to find out if true economics triumphs over perverse Keynesianism, or will taxpayers stand by idle seeing diminishing returns.
Why does the chart show the price at noon if the FOMC release was 2:15?
Hum, I can´t understand why everybody is comlaining about a 12 handle move. Wasn´t it clear that shorts will be "destroyed" today ??? Be as silly as me and let the robots do the work. That´s $$$$$ in my pocket.
Cramer is going to have a shit fit over this. Will it matter?
Military fingering Obama.
States judges fingering Obama.
Rest of world fingering Obama.
This President is done.
buy, buy, buy .. happy days are around the corner. just get rid of Obozo.
That'll probably fix everything. Glad we got to the bottom of this...
Yes, rampant fiscal irresponsibility is all Obama's fault. He is the one that pushed deregulation of exchanges and trading. Once Obama is out of office all markets will return to the normalcy we had in 2007....
[/sarcasm]
The "game" has always been rigged to some degree. "Big Boys" moving the market one way or another. Now they have algos and hft and what not, so its faster and easier to detect for those paying attention.
Anyway, my point about the President is that he is loosing support at EVERY level.
How much longer can he stay in office when the military is pretty much openly declaring they're NOT following. When state judges go head on with the White House and overturning a drilling ban. The governor of the same state is lashing out. When another state is taking immigration matters into their own hands. There isn't even a federal budget for heaven's sake.
The list goes on.
Obama is finished.
When Bush was in office; he was getting ridiculed by people in the military, being challenged by judges, lost international support, etc., etc.
It is the same song and dance for the past 10 years, just different suits. If you do not think so, you are obviously overly biased in your views.
Obama's just a puppet; the puppeteers are the same ol fascist scum.
"Military fingering Obama.
States judges fingering Obama.
Rest of world fingering Obama."
Something tells me you really want to do something "on the DL" with Obama.
this programmed farce is simply completely f**king disgusting
the banksters behind it belong in jail
it could not be more blatant
makes the SEC look absolutely ridiculous
The reason ES went up is because I was thinking it would go down and sold 1 contract short. No matter what I do I lose money. How do you guys make money in futures trading? Do you trade the spred?
Ever play on line poker? Don't. More than likely you have two people at your "table" that are connected. They can't control the cards, but they can control the betting. They never lose to each other. Its stacked.
Machines know what the collective "you" are doing. So they move against you. Keep in mind that in the short term this is a zero sum game. For each winner a loser. More than likely you have less resources available than those who control the robots. Its stacked against you.
If this knee jerk up flushed out the shorts and allowed the robots to get short at better levels you will see a weak close. How do you beat that?
"If this knee jerk up flushed out the shorts and allowed the robots to get short at better levels you will see a weak close. How do you beat that?"
Let's tree it and kill it.
LOL. Rented a place to four college kids who played online poker with one sucker on the line. Sucker didn't know they were in the same room calling out their cards to each other and calculating strategy on which hands to lose to the sucker, which to win, etc. They were splitting $50K to $80K a month.
Intraday trading is pretty difficult to make money unless you're well connected and well equipped. It has absolutely nothing to do with fundamentals or publically available technical analysis. When people here tell you that computers run the actual market, they are not being hyperbolic. Trying to do it as a human being is literally as likely to work as gambling at a casino, hence why when people tell you here that the market is a casino, they are not being facetious.
i have a friend who usedf to be a floor trader and every friday when high close harry came out to buy paper for the close they would sell to him and buy it back monday morning at a discount.i think traders know high close harry the fed when they see him
Riddle me this . . . an index (DJ) does 15% of its daily volume in the last minute, and it goes nowhere. Gee..
I think short term bounce and then crash hard.
http://midasfinancialmarkets.blogspot.com/2010/06/path-i-think-markets-w...
That has been the norm immediately after the release for as long as I can remember. Only people who leave their stops working are the market participants.
can't win for trying in this market, zero sum game, even for the big boyz and hal, they'll see
ALL YOUR MARKET BELONG TO US