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SPY Flash Crashes: NYSE Cancels $500 Million Worth Of Trades
Why bother with crashing individual stocks when you can crash the most traded entity of all. Today at precisely 4:15 the SPY flash crashed, sending the price of the most popular security in the world down to $106.46 from its opening price of $117.74.
Luckily for all the people who wrote in to us, and thousands more, who may have had MOC orders that got filled at 10% lower, the exchange has cancelled millions worth of trades. Per Bloomberg: "NYSE Euronext cancelled all trades
in the $74.8 billion SPDR S&P 500 ETF Trust that occurred at
almost 10 percent below the security’s opening price, according
to an email sent by the exchange." And as presented below (which is a mere sample of all the DKed trades) there were about $500 million worth of notional that just got cancelled. The market is a farce, wrapped in a joke, inside a tragicomedy.
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As I noted in this post - AH Flash Crash in SPY?, there's still a 100 share bid at 106.46 on the order book.
Up to 800 at 106.46. Somebody playing games?
Let's blame Waddle and Reed again.
Those guys are quick!
Half a billion here, half a billion there... Pretty soon you're talking about serious money!
This market is so FC'ked.
Remember the last flash crash?? We tested the 'crash' lows 2-3 months later. Will history repeat itself?
Price discovery, bitches!!!!!!!!!!!
you're on a roll. that one made me laugh out loud. too fucking funny.
after the may 6 flashcrash the market traded below that level three weeks later and closed below that level about a month later. this does not look near term bullish (talking my book).
Its the next mode they're using to fleece the public. I've stopped trading because of this.
The only way to avoid this type of BS is buy and hold physical assets. Obvious examples being gold and silver.
I personally think that this is going to happen again and again and again and who loses their shirt/skirt in a move like that? - dumb ass money, you and me, nicely positioned in a normal market but way over leveraged in a market that moves by 10% in a second.
No wonder people are pulling their hard earned out of these markets.
These fuckers in Wall Street need lining up against that Wall and then to be made accountable for this global fucking nightmare we're about to be plunged into.
Cancelling trades en masse is just another example-form of the PPT, HFT, QE 1.5, FED buying all coupons, nix that, stocks this time. The point is the same. The mark-up in stocks is the crack you amended your social contract with the FRS to call a good Life and get spendy again. Serial bubble blown-outs beware. The Zimbabwe market was On Fire, but the Zimbabwe currency burnt faster. The 'only thing' you think to do is most assuredly not tyhe ONLY thing, but education costs too much to waste it on the already convinced.
Convince me otherwise then Tony
I feel really happy and grateful for providing me with such priceless sound track. All are good here simply best. I want such article again and again.
oilseed presses
Hope they don't cancel trades when it crashes for real.
I think you have stumbled on the Fed's cunning plan to keep the market green forever!
Bingo!
Baldric: Lord Blackadder, I have a cunning plan to keep the markets from collapsing!
Blackadder: Does your cunning plan involve closing the markets so that no one can trade?
Baldric: My Lord! How did you know!
Blackadder: Because, Baldric, you are a dingleberry on Satan's bottom. I've seen more intelligent things than you wriggling around in my excrement. If you were a lemming, you'd say "How's the water down there? Don't bother, I'll check it out for myself."
[pauses] But still ... you may be on to something.
Baldric: Does this mean I don't have to sleep in the gutter no more?
Blackadder: That's right, Baldric. I'm promoting you to head pig slopper ... but you'll have to provide your own slop. And I'm still not paying you anything.
Baldric: God bless you, kind master!
rofl
You didn't hear? They have just now completed and canceled all trades for October 19, 1987. So that crash is no longer of any concern either.
"and canceled all trades for October 19, 1987. So that crash is no longer of any concern either."
Un-news, so to speak... or newspeak, so to speak. I speak, you speak... but let's not speak of speaking again.
seuss & orwell just collided inside my brain and it was glorious. Oh theraflu! is ther nothing you don't make fuzzier?
John, that would make for a great story over on The Onion. Get the idea over to them and make sure they give you the credit.
George ... The Greek .... From Canada
How have we arrived at the carnival funhouse?
You gotta be kidding me with the offical reason:
http://www.marketwatch.com/story/nyse-cancels-trades-in-sp-500-etf-repor...
Sometimes software updates are tricky.
Yeah - those 1 second after the close software upgrades can really suck butt
So, whereas most of us website operators upgrade our software at midnight on Friday or Saturday to prevent disruption/glitches, the biggest exchange in the world upgrades their software at 4:15 on the first day of the week?
You really can't make this stuff up. This would barely fly in a Bruce Willis flick.
I feel for my American friends.
Regards,
George .... The Greek .... From Canada
Lock Limit down, FTW.
Of course, if SPY can flash crash, what can't ?
I guess the humans really are dead...
http://merrillovermatter.blogspot.com/2010/09/humans-are-dead-at-least-to-hft.html
Oh Please can I gamble in your rigged casino?
+1, funny.
take ball, go home (to gold). carry on.
iSPY
iSorry
iPopsomepopcorn
iPuke
iMilkjokestoofar
:-)
Only the patterns matter... nothing else. LOL
oooh! Is that a donut?
The patterns that matter are the ones that go in a circle and are round and chewy.
Aside from this (SPY), look at different flash crash events and you see pullbacks to support lines correcting overbought situations. It happened with AAPL at the flash crash and late September. The computers take overbought situations and "fix" their technicals. Junk me if you want, but it has showed up more than a few times. It will happen again... it's what happens when code is trading with a master plan.
Now get back to Sector 7-G!
Care to elaborate?
My Dear Friend,
Are you a moron?
Warmest Regards,
H.
Most days not. I believe that I know what EYE was getting at, but there is a saying about assuming things... Besides, from prior comments that I've seen from the EYE, I suspect that this person has considerably more market knowledge than I do, which makes me even more interested in the EYE's perspective, in this matter and others.
Regards,
L-
Yes a farce! But as Mark Fisher said recently, what if May's (or today's) was in debt markets rather than equities? The repercussions would have been gianormous!
And just to keep going with the farces - today Mr. Geitner said the US would not debase the dollar, currency debasement is bad, we would never engage in such. http://bit.ly/a48BzA
So I guess the 96+% debasement of the dollar since 1930 is what, just a figment of our collective imaginations?
Give it up Timmay --- almost nobody is listening to you, and laughing if they are.
I would love to trade punches with Timmy...Just lookin @ him makes me want to punch him in the nose,....
Timmay is just Beevis without the self-confidence.
...5 minutes alone
Same treatment for Benny, Timmy and Hankster the Bankster, what now?
http://www.youtube.com/watch?v=23EOVuhIhdg&feature=related
lol you rock!
Hee hee.
Two hits Timmeh...me hittin' you, and me hittin' you again.
@ kitco at the moment all currencies are in redexcept the USD, gold down , silver down, yet the dollar didnt come up much. Sick puppy.
Impressive how easy it is for these people to lie, even when the truth is blatantly obvious
Am I reading this right? Nasdaq 100 futures index up a half point? Wasn't it down about 30 roughly 30 mins ago?!
Why do they keep bailing out this HTF morons. Let them take the looses!!!
Despite today's after hours dip fest, my guess is that U.S. stocks and bonds will rally and the dollar will drop (secondary to POMO, QE etc.) until China revalues the yuan (knuckles under) or dumps all their U.S. paper and puts a couple of military bases in Iran (tells U.S. to f-off).
Any holes in that theory?
Just one big one:
http://www.youtube.com/watch?v=wcW_Ygs6hm0
china, under a number of regimes, shows little evidence of establishing military bases in other countries, particularly non-contiguous ones. imo military bases in, particularly, non-contiguous countries are points of vulnerability/signs of weakness not strength. ussr in afghanistan (and that was contiguous), u.s. in saudi come to mind.
This post gives me hope all is not lost in the US.
I don't know where you're getting your hope from. As far as I can tell, this place is screwed.
hope is just the ego's hedge against suicidal tendancies
Hope that the system fails sooner than later?
without a doubt hope itself is a system that fails sooner or later
Wish I could claim ownership to that chunk of disseminated wisdom. How true.
I am not from the USA. Sorry. Hope is always overrated.
Because they are superior to you common ass. Get it?
hope had a price, nothing was free. So i took nothing and gave up the hope.
Is the NYSE going to cancel all those trades when the market doesn't bounce back?
...yes, all shorts must be massacred by any and all means.
it can't not bounce back.
Those people are crazy buying the SPY at only 10% off.
Exactly. Flash crashes are just the tremors.
iHiccup
Fuggeddaboudit.
The whole friggin' system is a farce. A 'market' is where fair trades take place. This is far from a 'market'.
your avatar = win
I thought breakers kick in at -15%? Maybe it was -10%, I am just too confused at this point to really care.
Ex-fucking-actly.
The fucking SEC better do something about this bullshit. It's not Waddel and Reed or whoever the fuck they say is doing this.
This is such a god damned farce. Were all the trades cancelled or just the ones from everybody else aside from the TBTF's and the PPT? Let's investigate the full list of all trades. Make them public. Transparency not Trannies. Should be the new SEC T-shirt. Banzai can you help me out with this? :)
This is getting fucking ridiculous. Who can trust anything any more? Why even bother?
Thank you for this web site. At least I know.
http://www.whitehouse.gov/contact
http://www.sec.gov/contact.shtml
http://www.ghostbusters.org.uk/contact.htm
Who got back to you first?
http://cdn.screenrant.com/wp-content/uploads/Stay-Puft-Marshmallow-Man-G...
It's not really about a response. It's about saying, "Fuck you, bitches!", as opposed to doing absolutely nothing. A very tiny step no doubt, but action nonetheless.
lol
LMAO...That's the best one in a week or so...
(my 5 bucks is on Ghostbusters)
Right the fuck on, H. This is beginning to piss me off quite seriously.
Yeah, all hail Tyler!
Another Waddle event? Where's Reed when you need him?
Dunno, but I just saw Timmy waddle into the bushes over there, where he's playing with his reed.
Cut to the chase with the ultimate reason: the butterfly flapping its wings in the Amazon rainforest.
O/T, but noteworthy. The unquestionable logic of defence spending...
"Chancellor George Osborne signalled on Sunday that the construction of two new aircraft carriers, HMS Queen Elizabeth and HMS Prince of Wales, would go ahead, when he told the BBC it would cost more to cancel the projects than proceed with them." - http://www.bbc.co.uk/news/uk-politics-11570593
It gets better...
"One of the Navy’s new £3 billion aircraft carriers will never carry aircraft and will sail for only three years before being mothballed and possibly sold, ministers will announce on Tuesday." - http://www.telegraph.co.uk/news/newstopics/politics/defence/8072041/Navy-aircraft-carrier-will-be-sold-after-three-years-and-never-carry-jets.html
It's time to bring back the guillotine.
Britain would easily win a Gold Medal for Incompetence and Dummass Waste.....if only the USA didn't offer up such stiff competition.
Britain's Aircraft Carriers
http://www.youtube.com/watch?v=t0jgZKV4N_A&feature=related
Carriers are sitting ducks for advanced missiles.
no, they aren't.
black swans then?
http://www.usni.org/news-and-features/chinese-kill-weapon
Generals (and Admirals) are still fighting the last war.
Well then I say we don't sell the advanced missiles to our enemies.
Didn't your own Admiralty call you navy a Coastal Defense Force recently?
They also failed to arm your newest Type 45 destroyer.
Gotta be embarrassing.
"Gotta be embarrassing" - I would call it treason.
What the hell??? Three years & then it gets mothballed? That's insane!
The guillotine? That sodding French contraption?!
It's the rope, man, the rope!
Guillotine is my kind of flash crash.
Shinny metal crashing down on some very prestigious heads.
Quick (flash) and hurts for a (flash)moment. Suck it up!
That's a fair point, KevinB. I just think the guillotine sounds better when in operation.
India will buy it. Either them or maybe Brazil.
Were that cost analysis be the case, then cancelling would cost them money, while proceeding apace will be on your hook and they get to keep it.
Another day, another ($500 million)dollar...lost like a fart in the wind. Worry not, everything is under control in the markets. We have circuit breakers and SECs and laws and rules. It's all good. Swear.
Monday music, Steak and Shake:
http://www.youtube.com/view_play_list?p=438A49417E0A53F7
3 cheers good sir, i hope y'all are paying attention...conrad is showin y'all how to get things done :D
Nice one Conrad--they is some gems in der (and I'm not just talking about the scratchin'.) Thanks for the effort. Missed Marla on Sunday, but glad to see the torch is being juggled with skill. Props too to Steak.
fucking waddle and reed again.
This is nuts, the gov't should tell every America to buy one share BofA and set the HFT going. It could easily hit 1M by Christmas and we all could retire
You didn't get the memo? They retired you already.
Sure would suck if everyone was really trying to bail out and they couldn't..."I'm sorry you can only buy...no selling allowed."
welcome to the Hotel Cupertino
Heh.
You don't have to be the fastest member of the herd...just not the last.
The last get what the fastest leave behind after they ate the poisoned meat.
There's a huge mega filament ready to let loose and if it does you'll see some wild things on the blue globe.
http://spaceweather.com/
Is that thing not wicked in size..longer than distance from earth to moon! M class flare at minimum..we needa huge X class to get things rolling.
SHE...IT!
WOW is all I can come up with.
Meltdown coming..
In more ways than one.
Sorry if I seem sarcastic, but is the shitstorm EVER fucking going to happen? Seems folks have been screaming "FIRE" for fucking ever.
i know that the unsustainable must reach an end, but i agree, i cannot believe they have kept the charade going for so long...
the house of cards has no foundation, and everyone can see the US is hyperleveraged, and by all means, completely bankrupt.
i know the banking cartel can't keep it going forever, but damn these aholes sure can kick a can. maybe after the (s)elections in Nov.?
Sorry if I seem sarcastic, but is the shitstorm EVER fucking going to happen? Seems folks have been screaming "FIRE" for fucking ever.
SERIOUSLY! If they ever let price disovery run its natural free market course the economy would heal itself in a sober reality as apposed to being fed morphine intraveneously while telling our families we are in "healing" mode.
When you wish upon a star...
careful what you ask for you just might get it.
I'm long Depends Undergarments for the impending shit storm.
considering the number of aging baby boomers staring incontinence square in the face (ewww), that is not such a bad idea!
One assumes you're expecting to make a shitload of money?
Money has no smell - Vespasian.
I hope they keep that shitload of money away from my cupful of satisfaction. Hint: they never really made that shitload, nor likely would it buy them more any satisfaction in the bargain.
so waddle sold 5 es contracts and that tanked the market, but panic selling in SPY doesn't?
Which tail is wagging which dog? Are the dogs wagging the tails? Are there even any dogs?
Government tail wags taxpayer dog. That is all the knowledge necessary.
There is nothing here...not an investment...not a functioning market...nothing. Move along.
If it had gone up 10% would they have canceled all the trades?
What about flash crashes/pops in all stocks, each few hours? Minutes? How frequent or severe does this event have to be to pronounce the market broken?
The guy who proved that market prices do not always follow the normal distribution has died.
http://www.nytimes.com/2010/10/17/us/17mandelbrot.html?_r=1&scp=4&sq=obituaries&st=cse
RIP
Now that truly IS sad. RIP, indeed.
These trades shouldn't have been broken at all according the the SEC rules. The circuit breaker should kick in at a 10% move, about $106.80, but the trades should not be broken unless trades were 3% below that, about $103.24 (calculated from the day's high of $118.67).
Per rules at:
http://www.sec.gov/news/press/2010/2010-167.htm
Total BS.
Interesting Canuck, SEC going agaisnts its own rules by reversing the flash crash trades.
A broken trade in a crooked market costs no one since all confidence is lost and the field is occupied by sychophants and other losers. The smart monkeys left long ago and just watch the ant farm diorama like the floor of the NYSE museum/garage.
Rules? Who needs rules?
So just who is going to enforce the SEC's own rules, if not the SEC??? If this is not evidence that the entire system is broken, and utterly corrupt, I don't know what is.
Mark it a zero, Dude. This isn't fucking Nam, there are rules. Mark it a zero.
SEC? Those men are Nihilists, Donny, there's nothing to be afraid of here.
Ben "Smokey" Bernanke is about to enter a world of pain. Does he want to enter a world of pain?
+1 Love it. I was gonna drop a "He's a pederast" but this might go on all day.
LOL...fuckin' nihilists!
*
You forget, there are no rules or laws any longer.
Better yet, have no circuit breakers at all. I can assure you, the market would become honest within microseconds, or would go down in total flames
.
The rules are only for little people like you. Get over it, serf.