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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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"Did you ever have a glitch
That you just can't scratch?"
that was funny. +1.
Just do it.
http://www.lp.org/
Check out what the Asians are doing about this:
http://www.youtube.com/watch?v=6SwiSpudKWI
Forget the Market - might as well bring your money to Foxwoods.
When they stopped trading, I knew which way things were going to go because trading had not stopped on SPY or QQQQ, which were falling as AAPL was halted. I think something must have gotten fucked up on downstreaming orders in ETF's because of the mayhem caused by the impending double earnings whammy, and causing the issues with spy/spxu? Peak complexity says it all. If not computers, than this was just a heap of insider bs that will get blamed on hft. They have us trained now to think fucked up shit is just a computer glitch and not some shady thievery.
I'm sure today stands out in many ways as less than ordinary.
I was long 350c aapl, long 280p aapl with a similar spread on IBM. Wonder how I'll look in the morn. IBM seems to have weathered better than AAPL.
ES trading looked very orderly. Are these crashes designed to scare the average or institutional investor into not keeping stops? Conditioning him also to the idea that these always come back ... so that in the real crash there will be no stops executed and the stocks will not come back ... at the end of that day everyone will have to liquidate. (And terminate that night). If you have the stomach for it the best play is VXX (you may have to watch your money go down the drain until that fateful day.
Of all the websites, I'd expect ZH to criticize the arbitrary and unlawful cancellation of orders. A bid/ask order and a trade are all binding contracts. I guess it's a small matter relative to foreclosure without proper paperwork, in the bigger scheme of things. But guess what, if I buy 1000 shares and then close it, only to realize the next day that my closing order got canceled and I end up holding 1000 shares, only with a 10% lower price, it is a big deal for me and it's no less illegal than the foreclosuregate.
The scenario hasn't happened to me yet. But it's only a matter of time. Are we trading in a market governed by law, or are we supposed to play Russian fucking roulette?
For all those who don' tthink this will ever happen to them, better think twice.
Every time such things happen, some retail investors get burned and disgusted. People don't seem to appreciate how important this is to the confidence in the market.
If you don't know by now that the Stock Market and likely every other market is as described in the last sentence of that post, then you shouldn't be playing in it.
This is a craps game and the players don't care if it is manipulated or not, as they only hope to get it right and be on the side of the manipulators.
You have had plenty of warning.
Risk is always ON.
Great CNBC companion piece:
http://www.cnbc.com/id/39723809?__source=yahoo|headline|quote|text|&par=yahoo
Why is this "thing" still open?
Just shut it down and MARK IT ZERO!
HAL, open the markets now!
http://www.youtube.com/watch?v=7qnd-hdmgfk
Damn it, I keep telling our Ukrainian programmers to test their algos more thoroughly before they go live, but they just won't listen. Lucky the NYSE's got our back on this.
CNBS - "software glitch" AHA!
"The market is a farce, wrapped in a joke, inside a tragicomedy."
In the broadest sense, hasn't it always been?
This is exactly why I always use PayPal for my SPY trades...
LOL
Heres a fucking theory for you. I noticed that a shitload of spxu was traded around 3:15 on a low. Bout the same amount was sold in afterhours for ALOT more. Trades were cancelled on SPY, but were they cancelled on SPXU? If you had prior knowledge, couldn't you just use SPXU as a proxy for to profit off the flash crash????????????????????????????????
I can't find this crash in the charts. Did they remove it from the charts when they canceled all the trades?
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SPY being maniplated...AH...million share blocks going off ABOVE THE HOD.
Thanks for taking the time to discuss this, I feel strongly about it and love learning more on this topic.
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