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Market Volume Explodes To Third Highest Since Flash Crash As FNSR Implodes For Second Time In A Row

Tyler Durden's picture





 

Stock volume, hiding for so long, finally made an appearance. The all dominating ES, which determines the stock price for virtually every other security in the stock market, surged to 3.7 million shares, the 3rd highest in 2011, with only the post-Fukushima nuclear explosion panic from March, when the Nikkei briefly went bidless, higher, and also the third highest since the Flash Crash days of last May. As reported earilier, now that all support lines have been breached, the next bounce can be expected at around 1,244 or the 200 DMA. Should that be taken out and it will be to make way for Operation Twist 2, we will promptly see the 1,150s once again. After that, we are straight down to Jackson Hole levels.

There was, however, one stock that was not determined by the ES, especially in After Hours trading: FNSR. Just like back in March when it tumbled by 15% on weak guidance, and the warning that "the Company will be impacted by...a slowdown in business in China overall" which prompted us to warn back in March that this is the "beginning of the end for the tech bubble" so the firm just defecated the bed once again, once again preannouncing that " the Company indicated that it currently expects revenues

to be in the range of $215 to $230 million; GAAP operating margin to be in

the range of approximately 4% to 6%; non-GAAP operating margin to be in

the range of 8% to 10% and non-GAAP earnings per diluted share to be in the

range of approximately $0.17 to $0.21." This compares with street estimats of $253 million and EPS consensus of $0.37.

This is what happened once the stock was reopened at 4:30.

Plunge.

Bottom line: another Cramer momo stock up in flames.

 


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Wed, 06/15/2011 - 16:45 | Link to Comment Robslob
Robslob's picture

They are making up for it now...down 15% after hours

Wed, 06/15/2011 - 16:51 | Link to Comment quintago
quintago's picture

Stop calling it a flash crash....it is a flash pile up.

Wed, 06/15/2011 - 18:15 | Link to Comment flacon
flacon's picture

May 6th 2010 was awesome. Relive the moment here:
http://www.youtube.com/watch?v=WmpNTtQu8E4

 

Wed, 06/15/2011 - 20:02 | Link to Comment T-NUTZ
T-NUTZ's picture

Bodybags BITCHEZ!!

Wed, 06/15/2011 - 16:49 | Link to Comment Robslob
Robslob's picture

Oops...17% down

Wed, 06/15/2011 - 16:49 | Link to Comment dwdollar
dwdollar's picture

Hey... what's that green line down there?

[image of deer]

Wed, 06/15/2011 - 16:49 | Link to Comment Robslob
Robslob's picture

A hook?

Wed, 06/15/2011 - 16:54 | Link to Comment cougar_w
cougar_w's picture

Tech is blowing chunks lately. My poor options ...

Wed, 06/15/2011 - 17:40 | Link to Comment slewie the pi-rat
slewie the pi-rat's picture

tonight's moonrise will not blow chunks

Wed, 06/15/2011 - 16:55 | Link to Comment So Close
So Close's picture

It is just another reason to buy more cheaper.  If you don"t belive me listen to Cramer tonight.

Wed, 06/15/2011 - 17:00 | Link to Comment lizzy36
lizzy36's picture

Getting back to even isn't as easy as it looks.....BOOYAH.

From March 15, 2011:

Mad Money" host Jim Cramer may have sparked communications chip maker Finisar (NASDAQ: FNSR - News) to a gain of 4% when he mentioned the stock as a possible winner due to increased Japanese demand as part of an anticipated rebuilding effort. Cramer said coming increased demand for products that Finisar makes could cure sales and inventory concerns surrounding the company.

Thu, 06/16/2011 - 02:01 | Link to Comment StychoKiller
StychoKiller's picture

These chips, are they lead shielded?

Wed, 06/15/2011 - 16:56 | Link to Comment skepticCarl
skepticCarl's picture

The stock market is said to "climb the wall of worry".  But there isn't yet a cliche for climbing a mountain of hopelessness.

Wed, 06/15/2011 - 19:31 | Link to Comment eureka
eureka's picture

skepticCARL -RE: "stock market is said to "climb the wall of worry".  But there isn't yet a cliche for climbing a mountain of hopelessness."

How about: "Fly On A Fed-Fart Over Cooked Accounting and Funny Fundamentals".

Wed, 06/15/2011 - 16:53 | Link to Comment buzzsaw99
buzzsaw99's picture

you always want to jump in and start buying when insiders are dumping shares. lulz

Wed, 06/15/2011 - 18:59 | Link to Comment NotApplicable
NotApplicable's picture

They're just diversifying their portfolio, honest.

Wed, 06/15/2011 - 16:54 | Link to Comment Sudden Debt
Sudden Debt's picture

I'm still in a negotiation for a substantial raise :(

I'd better try to speed things up with my boss.

DAMN HOLLIDAY SEASON!

 

 

Wed, 06/15/2011 - 17:05 | Link to Comment achmachat
achmachat's picture

I had a boss until July 2008.

I didn't like it.

I made stuff, his name is on it.

now I make stuff, my name is on it.

I like it.

Wed, 06/15/2011 - 17:12 | Link to Comment CrankItTo11
CrankItTo11's picture

haha +1

Wed, 06/15/2011 - 17:31 | Link to Comment The Fonz
The Fonz's picture

Well done sir!

Wed, 06/15/2011 - 17:34 | Link to Comment CrankItTo11
CrankItTo11's picture

haha +1

Wed, 06/15/2011 - 22:17 | Link to Comment HungrySeagull
HungrySeagull's picture

Had a boss.

Got rid of the boss.

Why?

All my thoughts was occupied by Boss micromanaging first my work then my life off work.

Now wife micromanages me off time with honey do lists.

Thu, 06/16/2011 - 00:40 | Link to Comment SokPOTUS
SokPOTUS's picture

Never take a lateral move.

Wed, 06/15/2011 - 16:59 | Link to Comment A Man without Q...
A Man without Qualities's picture

I'm still unsure whether this is all a pre-planned rout in order to give the excuse for QE whatever, (i.e. print more money) or whether they are losing control.  Given how much further oil fell than stocks, I have a hunch it's the former, but precious metals were pretty resilient, which is what I'd expect with the latter...

Wed, 06/15/2011 - 17:24 | Link to Comment So Close
So Close's picture

I am cautiously optimistic this is a tip toe toward normalcy.

Wed, 06/15/2011 - 18:14 | Link to Comment Arius
Arius's picture

my hunch is the deer is moving...

Wed, 06/15/2011 - 22:14 | Link to Comment HungrySeagull
HungrySeagull's picture

You see the first deer but not the 4 or 6 that follow behind.

Butchery.

Wed, 06/15/2011 - 19:01 | Link to Comment razorthin
razorthin's picture

I have no doubt.  But what I doubt is the longevity of its effectiveness this time around now that inflation is smacking bernanke on the forehead, like Moe on Curley.

Wed, 06/15/2011 - 16:56 | Link to Comment The Axe
The Axe's picture

This deal has happen 5 to 6 times before....downside selling on huge volume...then a pause...no volume melt-up..  time and time again......I rather place my head in a vice...

Wed, 06/15/2011 - 17:14 | Link to Comment Takingbets
Takingbets's picture

I'd take the vice too! I don't trust that this all isn't just a head fake to sucker the shorts back in for another fleecing. ;-)

Wed, 06/15/2011 - 17:06 | Link to Comment Paralympic Equity
Paralympic Equity's picture

Volume is back, and he is pissed off...

http://www.youtube.com/watch?v=eGPhUr-T6UM

 

If I'm correct, the VIX broke the downtrend made up of the three declining spikes? (I'm not next to a terminal right now)

Now, a spike + volume is good right?

Wed, 06/15/2011 - 17:07 | Link to Comment mayhem_korner
mayhem_korner's picture

Out with FNSR, in with Mauser M 98 as the new "new tech" wave

8-D

Wed, 06/15/2011 - 17:14 | Link to Comment RobotTrader
RobotTrader's picture

Yep, and the VIX and VXN made new highs for the move already.

Wed, 06/15/2011 - 17:19 | Link to Comment Saxxon
Saxxon's picture

I had a hard-on all morning watching my preciouses Au and Ag standing tall.  Just wonderful.

Wed, 06/15/2011 - 17:22 | Link to Comment Alea Iacta Est
Alea Iacta Est's picture

So can we possibly have two strong selling days in a row? Is that allowed?

Futures going green say NO!

Look for more doctored gdp data tomorrow which will, of course, be revised downward at a later, and less volatile, date.

Wed, 06/15/2011 - 17:30 | Link to Comment r101958
r101958's picture

POMO tomorrow.....no?

Wed, 06/15/2011 - 17:38 | Link to Comment Cman5000
Cman5000's picture

This is the end
Beautiful friend
This is the end
My only friend, the end

Of our elaborate plans, the end
Of everything that stands, the end
No safety or surprise, the end

Wed, 06/15/2011 - 17:34 | Link to Comment Cman5000
Cman5000's picture

This is the end
Beautiful friend
This is the end
My only friend, the end

Of our elaborate plans, the end
Of everything that stands, the end
No safety or surprise, the end

Wed, 06/15/2011 - 17:38 | Link to Comment Cman5000
Cman5000's picture

This is the end
Beautiful friend
This is the end
My only friend, the end

Of our elaborate plans, the end
Of everything that stands, the end
No safety or surprise, the end

Wed, 06/15/2011 - 17:42 | Link to Comment skepticCarl
skepticCarl's picture

Almost every major stock index around the world is flat or down for the year, including most emerging markets.  Kinda has the feel of a trend, to me.

Wed, 06/15/2011 - 17:56 | Link to Comment MacGruber
MacGruber's picture

If by trend you mean transitory.

Wed, 06/15/2011 - 17:39 | Link to Comment Cman5000
Cman5000's picture

Sorry folks '' experiencing technical difficulties ''

Wed, 06/15/2011 - 18:59 | Link to Comment NotApplicable
NotApplicable's picture

Interesting how your posts are timed, 17:38, 17:34, 17:38.

Something's not quite right in the matrix today.

Wed, 06/15/2011 - 21:34 | Link to Comment Monedas
Monedas's picture

This has even happened to Monedas ! Try editing your superfulous message(s) into an apology ! I like resourcefull people....I'm a Yankee hoarder !

Wed, 06/15/2011 - 17:49 | Link to Comment I am a Man I am...
I am a Man I am Forty's picture

I traded this from $22 (DCA) to $27 last implosion, dipped my toe in at $14.94, probably early

Wed, 06/15/2011 - 18:00 | Link to Comment walküre
walküre's picture

1 step forward, 2 steps backward.

The current market dance.

Pull the plug as QE2 fades.

Get the sheep participant players back onto the Dollar train.

Prop up the garbage US paper and therefore the fading empire, one more decade.

Doubtful but might just work.

 

 

Wed, 06/15/2011 - 18:09 | Link to Comment Yen Cross
Yen Cross's picture

  Tyler called that spx 1240 like a glove!!!!!!   It blew right thru. that level in the 1268-72 range.     Nice work Tyler!

Wed, 06/15/2011 - 18:30 | Link to Comment fiddler_on_the_roof
fiddler_on_the_roof's picture

I look like an ass now for thinking S&P going up. But I hold my bets for now.

Wed, 06/15/2011 - 18:48 | Link to Comment razorthin
razorthin's picture

What should have longs a bit nervous is that so far the decline has been far too quiet and orderly.  A VIX in the 30's might be required for a reversal.  That of course would mean a swift and major swoon for the indices.  Like -300 to -400 points, not this sub -200 manipulated bullshit.

That said, LDK Solar looking good with good RS.

Wed, 06/15/2011 - 19:07 | Link to Comment Miles Kendig
Miles Kendig's picture

The stack of smokeables keeps growing so quickly even I can't keep up

Perhaps the makers of Club rolling papers should consider a production run of product stamped with facsimile stock/bond certificates and demand notes of interesting companies & sovereigns

Wed, 06/15/2011 - 21:28 | Link to Comment nmewn
nmewn's picture

Hmmm, Zig Zag ;-)

The problem of course is, as soon as you go short they see it. I'll continue to stand on the sidelines and eat popcorn.

Wed, 06/15/2011 - 21:35 | Link to Comment Miles Kendig
Miles Kendig's picture

And I'll stick with Ginger & Ale. ;)

Cheers

Thu, 06/16/2011 - 06:43 | Link to Comment nmewn
nmewn's picture

I guess I'll never live that one down.

Clearly, I need to polish up my manly beverage image, maybe something with an umbrella in it while wearing a tu tu ;-)

Damn it!...I like Jameson & Ginger...LOL!

Wed, 06/15/2011 - 19:27 | Link to Comment monopoly
monopoly's picture

RIMM next. Moving down ever so nicely.

Wed, 06/15/2011 - 19:36 | Link to Comment razorthin
razorthin's picture

did I mention I prefer blackberries?

Wed, 06/15/2011 - 20:08 | Link to Comment Greeny
Greeny's picture

Yeah, that guy toasted, shorting RIMM, can smell BBQ already.. I do not

have any position in the stock but, there is so

many stocks to short.. RIMM..? I think it will be bought

very soon at least for $50/share and that's cheap, real

cheap, It's not some kind of freaking Pendora with nothing

behind.. :)

Wed, 06/15/2011 - 19:53 | Link to Comment chump666
chump666's picture

and also point is, now the shortselling, could be a perfect storm on China and EZ.  If metal prices tumble next 24hrs all risk on hanging by a thread are gonna go

Wed, 06/15/2011 - 19:57 | Link to Comment Greeny
Greeny's picture

What FNSR has to do with overall Market?

Market Cap just over 1.5B. What is the point?

Should everything crash just because some crappy

financial stock is down on heavy volume? They

all been down for quite sometime now.. But somewhat

stable anyways.. Don't search for 2008 event :)))

Ain't there..

Thu, 06/16/2011 - 07:33 | Link to Comment EB
EB's picture

"@ES" is a point adjusted continuous futures contract.  "@ES=12VON" will more closely track the cash and SPY.

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