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Rosenblatt Securities Confirms Stock Market's Slow, Painful Death Rattle

Tyler Durden's picture


Not only is consolidated stock activity plunging, with Rosenblatt Securities confirming a 50% drop in August action YoY, but ever more are shifting their trading patterns to dark venues. This is yet another checkmark confirming that "stock markets" are nothing more than a  venue for institutions to play hot potato with each other, as retail wants nothing to do with this joke of a manipulated market. From Rosenblatt securities:"The bad news is that non-displayed venues are taking a bigger slice of a shrinking pie.  August consolidated activity is on pace to fall even more dramatically (~35% sequentially and ~50% YOY), suggesting something beyond just the typical summer doldrums." In other news, the final draft of the obituary for capital markets is now running through the spell-check. 

From Rosenblatt securities:

Dark pools executed a greater share of US equity
trades last month as volatility declined from June levels. The 16
non-displayed venues we track executed 10.86% of total volume in July,
up from a revised 10.45% in June and the third-highest market share ever
for the group.
The bad news is that non-displayed venues are taking a
bigger slice of a shrinking pie. Aggregate dark-pool volume was 892.6
million shares per day in July, down 8% from the previous month’s 969.8
million. Consolidated volume declined by 11% during the same period and,
more significantly, was off 6% year-over-year (see “The Numbers” table on next page). 
August consolidated activity is on pace to fall even more dramatically
(~35% sequentially and ~50% YOY), suggesting something beyond just the
typical summer doldrums.

The market, as it was once known, is slowly dying before our eyes. And nobody cares.


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Wed, 08/25/2010 - 10:56 | 542908 Mako
Mako's picture

Slow death collapse, eventually liquidation of the non-performing liabilities... come back in a generation or two. 

"And nobody cares."

Caring has nothing to do with it, all the "care" in the world is not going to change the Math to keep the system going.   The caring should have taken place when your parents or grandparents started yet another system based on usury thinking the result was going to be different.

The market is doing exactly what it is suppose to be doing. 

- Expand

- Peak

- Fail to expand

- Collapse <-- you are at the very beginning process of this

- Liquidate

- Stupid lemmings have a choice, they pick the same choice thinking the end result is going to be different... rinse and repeat

I laugh, you guys are crying now, wait till you guys are liquidating one another.

Wed, 08/25/2010 - 11:04 | 542962 Hungry For Knowledge
Hungry For Knowledge's picture

Mako, who are the "you guys" you refer to?

Wed, 08/25/2010 - 11:05 | 542964 Hungry For Knowledge
Hungry For Knowledge's picture

Mako, who are the "you guys" you refer to?

Wed, 08/25/2010 - 11:06 | 542966 Hungry For Knowledge
Hungry For Knowledge's picture

Mako, who are the "you guys" you refer to?

Wed, 08/25/2010 - 11:08 | 542969 Mako
Mako's picture

The ones that are crying. 

Wed, 08/25/2010 - 11:42 | 543058 mephisto
mephisto's picture

I am laughing, singing, smiling, dancing...

Every time an asset goes through one of my put strikes, I turn the volume up.

Wed, 08/25/2010 - 12:01 | 543121 Cognitive Dissonance
Cognitive Dissonance's picture


Clearly you're catching the "I'm not swimming in the (same) cesspool you are" vibe from Mako. Wait until you see one of his posts where he refers to "you humans" using the "above it all" tense. Which leads us all to rightfully assume Mako is one of those lizard people David Icke talks about. It might explain the bag over his head. :>)

Wed, 08/25/2010 - 10:53 | 542920 Widowmaker
Widowmaker's picture

I care.  Show me criminal indictments from top (banks, securitization, Fannie & Freebie) to borrowers with "inflated incomes".

USA - prosecution for sale.

Wed, 08/25/2010 - 10:54 | 542927 Mako
Mako's picture

That is not the reason you are here and will have no impact on the final conclusion.

Wed, 08/25/2010 - 10:59 | 542940 Widowmaker
Widowmaker's picture

Could you please clarify, Mako?

Wed, 08/25/2010 - 11:05 | 542948 Mako
Mako's picture

Your system is based on the false assumption that supply and demand can increase exponentially long-term.  Everyone is running from the Truth.  Eventually the Truth is going to catch up to you. 

If you lock up all the criminals, there would be nobody to lock the door.

There is nothing that can be done, the only thing that can be done is not to start the same foolish system up next time.   The final result has been known, just like the last time, and the time before that.

The market is doing exactly what it was designed to do... which is peak and collapse.  I fail to see why everyone is so suprised.

Wed, 08/25/2010 - 11:06 | 542967 Turd Ferguson
Turd Ferguson's picture

Mako: I have suspected for some time that you are some type of mole. Your use of "usury" instead of debt and "your system" instead of "our system" is beginning to confirm my suspicion. I know that many public forums in the US have been invaded by islamist and socialist elements in order to confuse the masses and get them to question their opinions.It looks like that strategy has now found its way to ZH, as well.

Wed, 08/25/2010 - 11:16 | 542980 Mako
Mako's picture

Yeah, I am part of a huge conspiracy.  It's "our" system because you believe the lie.  I assure you if everyone was like me the system would crease to exist.  You can believe whatever you want to believe.   You are free to do whatever you wish to do, not much I can do to stop you.  I can tell you the end result of any system based incorrect assumptions in this case... Good luck to ya.

As you are probably aware, plans for the
development of the outlying regions of the
galaxy involve the building of a
hyperspace express route through your star

...and, unfortunately, your planet is one
of those scheduled for demolition. The
process will take slightly less than two
of your Earth minutes. Thank you.

There's no point in acting all surprised
about it. The plans and demolition orders
have been on display at your local planning
office in Alpha Centauri for fifty of your
Earth years, so you've had plenty of time
to lodge formal complaints.


Wed, 08/25/2010 - 11:23 | 543001 mikla
mikla's picture

Our system worked fine, too, until a certain someone ate the fairy cake.

Wed, 08/25/2010 - 11:25 | 543006 Mako
Mako's picture

You have to love the infinite improbability drive.  :)  Nice one.

Wed, 08/25/2010 - 14:49 | 543745 Dismal Scientist
Dismal Scientist's picture

Not to mention spending a year dead for tax reasons. Maybe I should change my name to Hotblack Desiato.

Wed, 08/25/2010 - 16:09 | 544077 Hephasteus
Hephasteus's picture

Ah the good old possum fu tax evasion scam. Good times. Good times.

Wed, 08/25/2010 - 14:22 | 543615 TraderTimm
TraderTimm's picture

That explains the screeching car wreck charts have become. Thanks to HFT's playing paddy-cake with each other, they're merely trying to make price pass through all possible points at once.

"Powered by Price Improbability Drive" is more like it, lol


Wed, 08/25/2010 - 11:13 | 542990 Village Idiot
Village Idiot's picture

"Mako: I have suspected for some time that you are some type of mole. Your use of "usury" instead of debt and "your system" instead of "our system" is beginning to confirm my suspicion."


Uh, yeah, that was a pretty big tell.  We should get a game of texas hold 'em going around here.

Wed, 08/25/2010 - 11:16 | 542995 schoolsout
schoolsout's picture

Mako is just a guy with no faith in the people, not even the few that do understand our system is screwed...and would like to change it.  Apparently, everyone on this Earth is fvcked in his opinion and from what I gather, humanity will not survive.

We know compound interest and the way our economy is currently run encourages exponential growth in a finite resource world...WE GET IT.


Wed, 08/25/2010 - 11:24 | 542996 Mako
Mako's picture

"Mako is just a guy with no faith in the people"

The act or acts have already been committed, my faith or lack of faith in people have no bearing on the end results which will be coming down the pike.  There is a result of choices previously made, not much I can do about it.

"humanity will not survive"

Never once predicted that.   Of course that is always a possibility.  I have no evidence that humans will be here forever, I suspect one day humans will not be on this floating rock.  I have no idea when that will be.

Either way, the system is doing exactly what it was designed to do.  Not much you are going to do to stop it.   Kind of like throwing yourself in front a train in the hopes you will slow it down.  Good luck kiddo I am pulling for you.

Wed, 08/25/2010 - 11:52 | 543096 schoolsout
schoolsout's picture

You allude to nobody coming out of this in most every one of your posts...

You say "Kind of like throwing yourself in front a train in the hopes you will slow it down.  Good luck kiddo I am pulling for you."


Just what in the hell are you talking about?  What train am I throwing myself in front of?  I'm doing my damnedest to get the fvck out of  the way.


Give it up, dude.  We know what angle you are taking.  I think most of us agree with you that we are fvcked because of past policies/choices.  Some of us are trying to prepare. We could be right, we could be wrong....what the fvck are you doing about it?

Wed, 08/25/2010 - 12:13 | 543128 Mako
Mako's picture

Not much I can do about "it".  Hopefully, I can pound some sense into a few lemmings not to do this again.  I predict I will fail in my hopes.  Either way, it should be fun.

I am not the one writing articles about "caring" and thinking "caring" for a system that is designed to imploded is even relevant.

Wed, 08/25/2010 - 13:09 | 543194 Cognitive Dissonance
Cognitive Dissonance's picture

Not much I can do about "it".  Hopefully, I can pound some sense in the a few lemmings not to do this again. I predict I will fail in my hopes.  Either way, it should be fun.

And there it is in black and white text. Mako's abusive tone is inflicted upon the ZH Community because it's fun and he speaks with the same justification and attitude as all abusive personalities aka school yard bullies. He tries to temper the obvious by saying "Hopefully, I can pound some sense in a few lemmings not to do this again" which is the swan song of all abusive people. "I'm beating the shit out of you for your own good. Now shut the fuck up while I beat you."

"It's not me, it's you because you're slow, stupid, dumb, ignorant, ugly and vulnerable and I can beat the shit out of you because I want to and I like to." The very fact that Mako sees it as his responsibility to "pound some sense in the few lemmings" shows his benevolent attitude to those he's pounding away on.

And of course it's done on the ZH web site where the abused understand for the most part how their government and the powers that be are already abusing them. In other words, abuse is only effective if the abused knows s/he is suffering the abuse and thus cries out in pain.

Sorry Mako but your Idi Amin personality disorder is on display in all its glory.

Wed, 08/25/2010 - 11:19 | 542998 Hansel
Hansel's picture


Wed, 08/25/2010 - 17:02 | 544259 ElvisDog
ElvisDog's picture

Mako also predicted some time ago that because of "the math" agricultural production in the U.S. would sink to zero - not just decline but disappear altogether.

Wed, 08/25/2010 - 12:12 | 543154 Vergeltung
Vergeltung's picture


Wed, 08/25/2010 - 12:13 | 543158 Moe Gamble
Moe Gamble's picture

Nonsense. Mako's talking simple math, and he's right. Amazing how few people understand simple math.

Wed, 08/25/2010 - 11:07 | 542968 Henry Chinaski
Henry Chinaski's picture

Well said.

Yet the criterion of truth is that it works even if nobody is prepared to acknowledge it.

Ludwig von Mises

Wed, 08/25/2010 - 11:13 | 542987 Mako
Mako's picture

They are all running from the Truth.  As soon as the masses acknowledge the Truth, a huge hole will open underneath the feet of the lemmings.   Unfortunately, for the lemmings the Truth is catching up to them.

Either way they are going down the pit.

"The Architect - Denial is the most predictable of all human responses. But, rest assured, this will be the sixth time we have destroyed it, and we have become exceedingly efficient at it."

Wed, 08/25/2010 - 11:20 | 542999 Hansel
Hansel's picture

There is no absolute truth Mako.

Wed, 08/25/2010 - 11:22 | 543000 Mako
Mako's picture

Sure there is.

Wed, 08/25/2010 - 11:33 | 543024 Pladizow
Pladizow's picture

I agree - It is "absolutely true" that Mako is a douche!

Wed, 08/25/2010 - 11:35 | 543033 Mako
Mako's picture

Could be, at least I smell ok. :)

Either way the final result is set in stone.

I am pulling for all you lemmings.  Watching you run is quite entertaining, can't wait to see the fireworks.

Wed, 08/25/2010 - 11:45 | 543060 MichaelG
MichaelG's picture

Put a sock in it, mate.

Wed, 08/25/2010 - 11:57 | 543109 Hephasteus
Hephasteus's picture

Too bad he's right. It's a fraud. A fraud has a beginning a middle and an end. It continues to run until it exhausts itself of believers. Just as a powerful engine continues to run until it exhausts itself of fuel. They don't call it getting burned for nothing.

Argueing with it won't help. Until people are tired of being gasoline nothing can put the fire out.

Wed, 08/25/2010 - 12:19 | 543181 MichaelG
MichaelG's picture

I wasn't arguing.  I think most people here get it, and basically agree.  So, we're not learning anything, and as a result constantly being called a lemming becomes rather tiresome.  (And I'm not even a lemming - more of a bacterium on a flea on a lemming, if anything.)

Wed, 08/25/2010 - 12:58 | 543299 RockyRacoon
RockyRacoon's picture

The lemmings aren't here.  They don't read ZH.  Mako's attempts to "help" them will do no good here.   Go to the Yahoo boards and find yourself some lemmings.

Wed, 08/25/2010 - 13:04 | 543326 Hephasteus
Hephasteus's picture

Ya. I said he was right about the issue. I didn't say that he wasn't completely disconnected from who or where he was being right.

Wed, 08/25/2010 - 13:05 | 543333 Cognitive Dissonance
Cognitive Dissonance's picture

Exactly. Mako is here to abuse and nothing more. See my comment above.

Thu, 08/26/2010 - 00:04 | 545075 MichaelG
MichaelG's picture

Said comment was spot on (and incidentally made me feel better, so thanks!).

Thu, 08/26/2010 - 00:01 | 545063 MichaelG
MichaelG's picture

Rocky - Your first three sentences mirror the point I was attempting to make (badly).  So I hope your final sentence wasn't aimed at me.  My 'bacterium' comment was intimating that when an entire cliff collapses, it doesn't matter if you would have blindly jumped off it or not, you still plummet.  Some of us can't afford guns, gold and a farm in an inaccessible location!  I'm glad some can, though! - they will be important when TSHTF.

Thu, 08/26/2010 - 00:31 | 545117 RockyRacoon
RockyRacoon's picture

No. Sorry about the misplaced comment.  I was just piling-on.  You got squished in the melee.

Thu, 08/26/2010 - 00:43 | 545130 MichaelG
MichaelG's picture

Safe.  "Squished in the melee" - there's a forward-looking statement if ever I saw one!  :)

Wed, 08/25/2010 - 12:13 | 543159 Pladizow
Pladizow's picture

Take it easy "Rothschild", and come down from the 2" pedestal you think you are on.

By partaking in this silly banter, you include your self as one of the heard.

Arguing the contrary would be futile and an admission.


Wed, 08/25/2010 - 12:30 | 543203 2discern
2discern's picture

There is no absolute truth Mako

Hansel, Does that include your statement?

Wed, 08/25/2010 - 12:26 | 543199 Slartebartfast
Slartebartfast's picture

I always preferred turkeys to lemmings.  They run from one side of the cage to the other trying to avoid the axe, yet all somehow end up as dinner.


Wed, 08/25/2010 - 20:25 | 544709 StychoKiller
StychoKiller's picture

"All things must pass."  -- George Harrison


Wed, 08/25/2010 - 12:51 | 543233 Widowmaker
Widowmaker's picture

*double post*

Wed, 08/25/2010 - 12:49 | 543271 Widowmaker
Widowmaker's picture

Im interested to hear your thoughts on risk vs. fraud.

Risk is not bad, it's when it is combined with fraud that has my attention.

You make a good point that illustrates the symptom, if everyone is committing fraud (or breaking laws for the edge) is that what you mean by participating?

Committing fraud itself is a risk, no?  Shouldn't prosecution to deal with fraud naturally effect risk?  How is fraud-risk priced into the market (or not)?

Wed, 08/25/2010 - 10:53 | 542926 Sudden Debt
Sudden Debt's picture


You forgot to bring out the >10.000 DOW CAP!!


I'm sorry man... that's a -1 on your reportcard...

Wed, 08/25/2010 - 12:59 | 543303 RockyRacoon
RockyRacoon's picture

One could go bald taking the cap off, putting it back on.

Look at Art Cashin!

Wed, 08/25/2010 - 10:54 | 542928 cainhoy
cainhoy's picture

just another symptom of the great unraveling of the last 250 years of euro-american ascendancy into a collapsed tangle of kindling that will probably lead to a holocaust of world war in our lifetime. oh, well...

Wed, 08/25/2010 - 11:00 | 542942 firstdivision
firstdivision's picture

Going to go green today for sure.  Anyone see the last few minutes pump in SPX?  Holy crap this is too obvious that this is manipulated....way to try to lure retail back.  Problem is these manipulated moves cause retail to flee even faster. 

Wed, 08/25/2010 - 11:26 | 543008 Yikes
Yikes's picture


Wed, 08/25/2010 - 11:35 | 543038 espirit
espirit's picture

They ramp the dollah up all night long, then it starts to fade as the euro mrkts wind down, which can ramp our mrkts if necessary.

And lately - It has been a necessary action by the PPT to prevent catastrophic market collape, as it is better to wring every last retail $ before the baracudas in the pool begin to feed upon each other.

<sarcasm off> 

Wed, 08/25/2010 - 11:08 | 542972 lieutenantjohnchard
lieutenantjohnchard's picture

dark pools may not shine but my silver and gold coins do, the latter two of which (other than shorts) seem to be the only investment worthy of the name.

Wed, 08/25/2010 - 11:10 | 542978 Sophist Economicus
Sophist Economicus's picture

Hey Mako,

I know you speak with infallibility while on your astro-throne, while 'we' go through whatever machinations you think 'we' ALL do, but, a few corrections


1  peak = fail to expand

2  collapse = liquidate


Other than that, you're almost as good as Polonius -- might want to borrow "neither a borrower nor lender be"  -- he did really well with that one too


Rinse - repeat

Wed, 08/25/2010 - 13:00 | 543310 RockyRacoon
RockyRacoon's picture

Look.  Johnny Bravo left some pretty big shoes to fill.  Mako is doing his best.

Wed, 08/25/2010 - 11:14 | 542993 putbuyer
putbuyer's picture

the final draft of the obituary for capital markets is now running through the spell-check.



Wed, 08/25/2010 - 11:26 | 543010 Quinvarius
Quinvarius's picture

There will be a market again at the right price.  A bunch of banks masterbating with free money is not the market.  The public is the market, despite the arrogant claims of the bankers. 

Wed, 08/25/2010 - 11:39 | 543053 firstdivision
firstdivision's picture

Very true Quinvarius.  With these artificial price inflations the market has no real way to go but down.  QE did nothing but create a stock bubble, all be it was a small on when compared to other stock bubbles.  Once the manipulation stops and everything falls to a true supply-demand price, then we can have sustainable and organic growth again. 

Wed, 08/25/2010 - 11:57 | 543112 Hang The Fed
Hang The Fed's picture

Oh, there'll be a new market after the death of the old one, for sure.  However, most of what's traded will be chickens, cattle, and bushels of grain and veg.  Let the cranks have their fucking paper's worthless anyway.

Wed, 08/25/2010 - 12:26 | 543196 LMAO
LMAO's picture


Is that the creepy dude from Matathon Man?

In that case, No...It's not safe!


Wed, 08/25/2010 - 11:49 | 543086 MarketFox
MarketFox's picture

That's just it....

A handful of large acounts does not a market make....


Defrag the exchanges,,,no dark pools or outside matching of any sort....

All public securities of any type have to trade on it....


Size limitations....

Funds cannot be of the size whereby prices are self- fulfilling....or can be controlled to a large degree....


Just like the "Harvard Princeton Yale Club" has turned the middle class into serfs....and thus biting the hands that feed THEM....

The time for a complete restructuring of the public exchange is long overdue....


This time around on a BATS style model with a Swiss domicile....far away from the SEC/Corporate Fascist regime....


The exchange needs to go RETAIL...2 billion personal retail accounts pushing their personal computer buttons based on wiki format information....paying no more than 20 cents per 100 units....the banks should service this....and not be allowed in the public arena outside of servicing RETAIL.....



Wed, 08/25/2010 - 13:01 | 543313 citizen2084
citizen2084's picture

Thx for posting - your points are worth sincere contemplation...

Wed, 08/25/2010 - 11:52 | 543097 MrTrader
MrTrader's picture

Skynet has ordered a short squeeze today. Skynet does not like negativity input. Obama on vacation is good thing for America. Skynet can work autonomous. Skynet end.

Wed, 08/25/2010 - 12:02 | 543122 DonS
DonS's picture

+1 LOL....this market is so rigged by the robots its unreal, so pathetic it has come to this

Wed, 08/25/2010 - 12:08 | 543139 firstdivision
firstdivision's picture

Would be funny to see a hacker get into a couple of HTF firms and just type the simple comand </HF STOP>.

Wed, 08/25/2010 - 14:31 | 543651 MrTrader
MrTrader's picture

Skynet just crossed 1050.50. Skynet can hear shorts sweating. Sweating not good for heart rate. You cover short, Skynet will forgive you. You stay short, Skynet will destroy you.

Wed, 08/25/2010 - 15:36 | 543945 MrTrader
MrTrader's picture

Skynet just crossed 1050.50. Skynet can hear shorts sweating. Sweating not good for heart rate. You cover short, Skynet will forgive you. You stay short, Skynet will destroy you.

Wed, 08/25/2010 - 15:39 | 543951 MrTrader
MrTrader's picture

Skynet just crossed 1056.25. Shorts screaming foul. Skynet doesn´t care. Routine job.

Wed, 08/25/2010 - 12:22 | 543190 firstdivision
firstdivision's picture

Just an FYI, we are up 1% from the low of the day.  Nice BS rally there.

Wed, 08/25/2010 - 12:33 | 543213 redpill
redpill's picture

Well, it's because of all the good news.


Wed, 08/25/2010 - 13:16 | 543352 Florida Joe
Florida Joe's picture

How do I post an image as a reply?

Wed, 08/25/2010 - 13:57 | 543498 Hephasteus
Hephasteus's picture

Just send it raw. We can all decode the matrix in our head.

Wed, 08/25/2010 - 14:04 | 543530 midtowng
midtowng's picture

Buy and hold for the long-run.

Unless, of course, you aren't a complete moron.

Wed, 08/25/2010 - 14:25 | 543627 brodix
brodix's picture

So capitalism drowns in capital. We can thank the liquidity providers for that.

 Mako is right, it's all a bunch of cycles and the happy medium would otherwise be a flatline on the big heart monitor. Can't have ups without downs. If he climbed out of his rathole and joined the rest of us rodents lined up on the keel of the sinking ship, he'd probably be happier though. Misery loves company.

Wed, 08/25/2010 - 20:30 | 544724 StychoKiller
StychoKiller's picture

"The Age of Kali" will come to an end, eventually.

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Herry12's picture

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