Third Consecutive Late Selloff Has Momos On Edge, As JOE Shorts Pummeled

Tyler Durden's picture

After two consecutive days of late day sell offs, today may have been the day that sealed it. After the market opened with its traditional low-volume melt up appeal, once again suckering in the straggler asset managers, it was followed by an increasingly more resonant tiptoeing toward the exists, as ever larger ES blocks were dumped, confirming that the larger institutions are increasingly taking profits during what used to be the domain of the 3:30 pm melt up. As we speculated yesterday, we have reason to believe that the ETF gamma trade has flipped (courtsy of massive amounts of SPY shorts outstanding) and at this point the HFT crew, with its perpetual bid side bias, is starting to lose out big to the nearly $2 trillion ETF market. Should this accelerate not even GETCO's DMM silent but deadly no volume levitation will do much. And unlike yesterday, today's sell off occured on a POMO day...

And incidentally, all those who followed David Einhorn into the second time is the charm short in St. Joe's, are likely not too happy after 1.6 million shares traded on what appears to be an attempt to force squeeze all the shorts out of the name.

And contrary to media attempts to explain the pop, the rumor that JOE was an aquisition target appeared over 6 hours ago as confirmed by our own tweet from around 10am. The jump did not occur until well later.