This page has been archived and commenting is disabled.
TGI HFT Fry Day
Another day, another binary HFT mad finger intervention making a mockery of the NBBO, and the general market. Earlier, following absolutely no news, Merrill Lynch Canada Inc (NYSE: HCH) which had closed at $115.93, decided to trade up 30% for no reason at the open, hitting a price as high as $144.99 after some computerized stock trading Frankenstein blew a fuse and ripped through every offer on its way $30 dollars higher. This continued for about 30 seconds between 9:34:14 and 9:34:49 when 1,700 shares went apeshit about 25% over the NBBO. Yet if this was an isolated incident it would be fine, but just over an hour later, the same algo went berserk again, going to town with the stock in the upper $130s, trading another 1,200 shares (see below). An embarrassed NYSE had to immediately come out and DK all the trades, providing no explanation for the DK'ing. After all, we all know that when it comes to HFT algos blowing up the market, be it 5/6, today, or last week when WaPo traded a few million percent higher for a second and tripped circuit breakers, nobody knows nothing. And as long as the HFT lobby continues to hire every single person from the SEC who believes they are owed a far greater salary from the frontrunning lobby, the lack of knowledge will continue.
NYSE Announcement.
»
- 5663 reads
- Printer-friendly version
- Send to friend
- advertisements -
Im telling you, they are beta testing the new Algo patch to mine news articles and ratings. You will get a few run away for loops as it tries to distinguish between ligit data and facebook postings regarding how many margaritas "Merryl" had for "lynch" This will go away as things are tweaked.
LOL. I think the algos are also tapping into Hulu. I noticed a surge in BP while watching an old episode of Laugh-In when someone says "You bet your bippy."
I can't wait until the algos bite into GLD or PHYS or any other Gold victim. With all the manipulation in Gold, it will be interesting to watch the flames and lightning bolts when, not if, this happens.
this was just a practice session for the algo. only a few thousand shares on a thinly traded stock. after they fine tune the formula, watch out. it will be fast and quite deadly. like this:
http://www.youtube.com/watch?v=UGDEnpCgGOI
"I can't hold her, Captain. She's breaking up!"
-Scotty
"Damn it, Jim, I'm an algorithm, not an investor."
Bones, youre a doctor, there is your patient!
Scotty, I need more power nnow!
"after some computerized stock trading Frankenstein blew a fuse and ripped..." lol ))))))
Thanks Zero Hedge you make my day with this line
Just pull all monies from the market, advise everyone you know to do the same. Empty 401k stock mutual funds.......let the fuck with themselves.
Already done...
Oh yea? Anyone want to explain why IYR would be up 2% today and climbing at a 45 degree angle all fucking day?
GDP misses (again) and REITs skyrocket...right.
I noticed this as well... Was riding SRS since 25.10 but got stopped out at 27 when it pulled way back. I was like WTF? S&P is down and IYR is going to the moon? Something has been up with that index for a long time though. Not much of a surprise, but, I'm glad others noticed it.
I feel your pain. They'll get my SRS shares when they pry them from my cold dead hands. I'll ride this disaster of an ETF down to zero if that's what it takes.
Been there, dude. That fucking srs will kick your ass every time.
It's a pretty simple trade for the algo-hedgies, though. Sell the srs and take the proceeds to buy SPG. Its a virtuous cycle and you get to collect the SPG dividend.
Be careful.
faz same story
I get that. But, honestly, running up IYR like a Saturn V rocket with a flat DOW and in the face of an obviously awful GDP revision? I mean, Jesus fucking Christ...how absurd can you get and especially with the already absurd valuations which HAVE TO BE the worst of any sector.
IYR now up 2.3% in 4 1/2 hours. Of fucking course...
My 2 pennies.
IYRwould be up if FinReg was in bank's favor (it was)
As for SRS, IYR and other ultras, yes, you will go bankrupt on those, it is actually incredibly stupid (even if your economic scenario plays out, as expected, you may still lose all your money. There's a ton of empirical data out there that prove that ultra/x3 are the stupidest investment/speculator instrument ever devised)
__
Just curious, why would you assume IYR would go up at the current valuations based on FinReg? How would that increase commercial real estate values and / offset the fact that retail spending is in the toilet and the GDP revision is downward?
I'm not picking a fight, I'm just curious as to your logic.
Also, IYR is not an ultra (or X3) leveraged ETF.
"Also, IYR is not an ultra (or X3) leveraged ETF."
Which is why I seperated it by it being in a different paragraph. (These are the agreed upon rules)
There were two points:
1. ultra's
2. IYR / finacial/reg
__
Now, as to your question: "Just curious, why would you assume IYR would go up at the current valuations based on FinReg?" (The other questions were meaningless)
1. Look up the components of IYR
2. Look to see if the financials and IYR have had any correlation in market movement.
__
Hope that helps.
OK.
Top 5 Equities Company Percent ofHoldings SPG
Simon Property Group... 8.3% VNO
Vornado Realty ORD 4.9% PSA
Public Storage ORD 4.1% EQR
Equity Resident ORD 4.1% BXP
Boston Properties In... 3.6% Percent of all Holdings: 25.0%
It does coorelate with XLF, but that just goes more to my point that it's rigged as fuck. In fact, it's over performed XLF significantly. Anyway, it's awful.
Also check this out... And maybe I just don't know options that well.
CDE goes from about $16.00 at open up to $16.70. A 70 cent gain. Yet the July 16th call @ 17.00 strike is up only 5 cents. Huh?
If the trades are DKed does that mean the blowup went against the algos?
Nah, it's all algos vs. algos these days.
If it got DK'd, it must have hurt GS, I figure.
Anytime a trade comes across that NYSE doesn't agree with, they can just roll it back. Uh yeah, that sounds so pathetic... Why does NYSE care if the idiots paid too much?
Does anyone ever notice that when Tyler Durden talks about irrational price trades due to HFT or flash crashes due to HFT and/or other causes, Tyler never mentions FINRA, the self-regulating association of securities dealers that are responsible for policing NYSE trades now???? Why does Tyler Durden never mention FINRA??? FINRA gets a free pass from Mr. Durden???
My guess would be because FINRA was bullshit from the very beginning and really not worth the mention. It's a given that self-regulation as a concept is hilarious.
Agreed, what a fucking joke. Imagine a baseball game where the umps just arbitrarily pull a few runs here and there after the game is over. Or a casino where the house just decides that wasn't really a blackjack they just dealt you after all. Sorry, our bad.
I bought baseball tickets on StubHub the other day, and started thinking to myself -- if there existed a similar website for stocks, where private buyers and sellers were matched for transactions, what would valuations look like? And volume?
LendingClub came to mind as a model for how this might work, and it is interesting to see the delta in both rates and returns vs. the traditional bank-originated lending market.
The root causes are:
- irredeemable paper fiat money
- central bank
- trillions in excess "liquidity"
- TBTF, TARP, moral hazard squared
- arbitrary and capricious accounting regulations
- arbitrary and capricious regulations in general
- zero interest rate policy
- bailouts, stimulus, marx and keynes oh my!
And you honestly think you can fix the (un?)intended consequences of this by forcing traders to trade m o r e SSLLLOOOOOWWWWWLLLLLLLLYYYYYYYYYY?!?!
You can't fix a flat tire by letting the air out of the other three. But you can make the problem worse.
And don't forget lack of enforcement of the weak regulations we have!
Edit: Your causes are apparent causes, not root causes. The root cause is greed.
More like: blew a piston.
Mr President, this morning there exists a clear and present danger to the security of the United States. The stock market is in an impending condition known as "Flash Crash". We recommend that you activate the National Financial Security Network immediately and authorize immediate release of funds through the Treasurer to our agents in the field.
With Executive Order #236 I hereby authorize Operation Linebacker 3.
What good is unchecked executive power when you can't waterboard a computer?
have you noticed..everytime NYSE has a problem..zh goes down too :-))
Zero hedge is giong to need a whole RACK of servers for July.
Why, is that when the Trashury's diarrhea finally destroys this joke of an equity market?
Does anyone ever notice that when Tyler Durden talks about irrational price trades due to HFT or flash crashes due to HFT and/or other causes, Tyler never mentions FINRA, the self-regulating association of securities dealers that are responsible for policing NYSE trades now???? Why does Tyler Durden never mention FINRA??? FINRA gets a free pass from Mr. Durden???
Here you go...now I know why the market is levitating higher today. <sarcasm> ON.
http://online.wsj.com/article/SB1000142405274870422730457532727301474766...
If you don't believe QE2 is coming, your head is so far up your ass it is irremovable.
Agree. With conservative UK and Germany talking about austerity, inflaters are getting nervous. I expect a FED QE2 to be a show of force to scare those smaller CB into questioning their decisions. FEAR is the tool. Announcement this weekend?
Buy some August gold calls, just for fun.
I like to believe that the QE2 is coming, but there are too many forces against it. If they pass QE2, China will be a bit on the pissed side, and that is the last thing we want is a pissed off China. China was complaining on QE1, so I could see them pressuring for a no on QE2.
*disclosure* I really do not want another QE either.
I smell another market afternoon dump coming. Bids on ES are weak weak weak.
Also, the 30yr at 4.05% and 10yr at 3.09% only thing that stinks worse than these is Gulf oil on Louisiana lawns.
Watch 1076 on the Sep ES. Will be your key.
Seems our Congress got the message yesterday on the Bank Reform package as the HFT algos tanked the market 140 points.
Today they pass the Bank friendly reform and suddenly market goes up despite a non-stop flood of bad economic news.
Banks make clear to Congress..."Don't start thinking for yourselves"...if that's at all possible.
To think that this was at all related to HFT is plain silly.
HCH trades an average of 445 shares per day over the last 3 months, so no HFT fund is trading HCH.
Additionally, it is not HFT funds that place brain dead market orders, but stupid retail and institutional traders... and it needed a market order to wipe the ask side of the book clean and produce that kind of movement.
So, like it or not - this was human rather than machine error.
Interesting perspective peterpuller, thanks!
Word.
Though an algo scanning for irregular Px might have tagged this as the momo for the day and shot out some orders.
Indeed. What is concerning is that of all the comments generated here, only one person so far has stated the obvious.
Blacklist me, but I wish there were occasionally something more than the same old rhetoric in ZH comments. It seems like "critical thinking" only goes one direction here.
Beware massive Russell Index rebalance late session, might see lotta buying....
Hahahaha, look at the market go. Nothing like a bad GDP number to push it higher. "To the moon Alice".
The S&P Chart is Giving Amerikans the Finger
In honor of the corrupt, worthless, bribe taking, eunuch Dodd's NO REFORM Financial "Reform" Bill.
Did I mention Dodd was a corrupt, worthless, bribe taking eunuch?
Does anyone ever notice that when Tyler Durden talks about irrational price trades due to HFT or flash crashes due to HFT and/or other causes, Tyler never mentions FINRA, the self-regulating association of securities dealers that are responsible for policing NYSE trades now???? Why does Tyler Durden never mention FINRA??? FINRA gets a free pass from Mr. Durden???
Are you new here? He has rants about FINRA as well. Just pay attention.
Financial Skynet.