The Tide Goes Out: NYSE Market Volume Plummets To Second Lowest Of 2011 Following Citi Reverse Stock Split

Tyler Durden's picture

Now that HFTs are scrambling to find something, anything to replace the rebate-collection piggy bank that was Citi between $4 and $5, so far unsuccessfully, we get a glimpse of just how critical to the overal market HFT non-volume has been. In the first day of Citi trading post-split, total NYSE volume has now  plunged to the second lowest level of all of 2011, eclipsing even low volume semi-holidays. And since none of the Citi "volume" was real volume but merely rebate collection churn, the broader public will finally understand what a complete sham "participation" in this centrally planned market has become. And for all those looking for some surprising pick up in commission revenue for the big banks, below is a chart of the inverse.

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kushmere's picture

Lots of new folks around her (myself included) don't really know how to interprete this information. Anyone care to translate to sheeplese?

Thorlyx's picture

also known as:

Gold, bitchez.........

Votewithabullet's picture

Kushmere must be timmays new ID trolling for laughs.

Titus's picture

No fair. I can't think when I look at your avatar. 

HUGE_Gamma's picture

its trading volume in millions of shares..

BTW- 420 always works as the gotcha answer

Sudden Debt's picture

Stay away from bankstocks!!!

Citigroup needs à 10% div to survive. And even with this trick which Will need to bring Citigroup stock down to 5$ Will make it temp. It won't in THE long run.
Bank earnings keep going down!

THE do this to see if pm's Will go down.
In THE 80's bank div's of 10% where used to lower gold because THE could generate more earnings than THE gold rise.
But now THE fundamentals lack.

Banks Will keep dropping. Bac Will soon do THE Same as Citigroup to try to raise THE div.

THE stocks Will be à Hughe short play!

Don't forget That now they Will give 10 cents per Q.

It must drop 90% to give 10% returns!..

Re-Discovery's picture


Very low volume means few bids in the market and very few actual bidders. 

Only action in market is generated then by high frequency machines trading whole sectors and large cap names.   However, when "risk off" button is pushed on these machines, low volume goes to no volume and prices drop on air pocket of bidless free-fall, e.g. flash crash.  Indeed, these machines are programmed to sell as prices take out lower levels so a negative feedback loop ensues.

Whenever you hear the market is on sound footing, check the volume stats.  If things move higher on heavy volume, then market is strong.  But that hasn't been the case for some time now.

the other point is that banks that have trading desks make comission on trades, meaning low volume equals lower profit.  Not all banks have these operations, but the TBTF do.  So, among other reasons, don't buy the TBTF banks.


Votewithabullet's picture



DICK Bove says this stock will triple in 3 years. You should buy with both hands.

Robslob's picture

#1 You are not a sheeple
#2 There is no spoon Neo (a.k.a. market, just machines)
#3 You may now go back to sleep...all is well...all is well...all is well...

Rynak's picture

When you phrase it like this, even i feel uncomfortable.

oogs66's picture

I still don't understand why people don't focus on market value volume rather than number of shares volume?


Sudden Debt's picture

THE hypno powers of historic charts.

Just look to Yahoo how THE lemmings go nuts on Citigroup

Libertarian777's picture

because its easier for HFT to make 0.001c on each trade x 1m trades a day on a $4 share vs trying to make 1c a trade on 100,000 shares on a $40 stock.


it's 'liquidity' as HFT's like to claim. you know.. like how there was massive liquidity on May 6 2010. HFT's 'got our back' and provided needed liquidity to the market. bids at every price... some such.

HUGE_Gamma's picture

$5,000min degenerate prop traders are having a hard time rebate trading a $40 stock

Seacap81's picture

Sheep getting wise very slowly.  Leaving rigged Casino and headed for metals.



Ivanovich's picture

Why, because those markets aren't manipulated?

Seacap81's picture

Precisely because they are manipulated.  It's great to buy physical bullion when manipulated lower and suppressed for a generation.

LaLiLuLeLo's picture

Between the CME hiking marginal reserve requirements from 9,500 to 21,600 (5 times in one week) and the treasury secretly telling commoditiy traders to advise clients to sell their gold and silver, I don't know where the fuck to go. JPM must be brought down before they take everyone else out with them. SLV LIBERATION ARMY!!!

max2205's picture

i vote for CROX

IEVI's picture


Date                      Price          Volume 

May 9, 2011              44.16       48,675,817  (reverse stock split)

May 6, 2011 4.52     512,725,500




Tortfeasor's picture

10-1 reverse stock split.  90% drop in volume.  Seems right to me

StychoKiller's picture

Take two Scamagains™ and call your broker in the morning...

Confucious 222's picture

Robots will have to go back to signing deeds for a living.

fockewulf190's picture

Maybe they would be be better off crunching data blocks for SETI@Home.  Hate to see all that comp power go unused. 

IdiotInvestor2's picture

Meanwhile AIG is at 52 week low (and down 50% from peak), which no one seems to notice or care. Is AIG completely irrelevant ? I have no clue. But since 2007 summer, this has been one weird stock market.

Misean's picture

It's all about 401K and ERISA pension expectations. Kinda like how the government sends you a notice about all the Socialist Insecurity moniez that you got coming down the road. It's based on the principal of the mirage.

suldog's picture

Exactly - and in between their devaluing-exercise, they will legislate a requirement to own treasuries.  

Keep watching.

Pladizow's picture

It will be government issued annuities!

Give us all your money and you wont have to worry about a thing, we'll take care of your retirement income needs.

You know, because they handle money so well!

buzzsaw99's picture

The pensions buy index funds. AIG is still listed in the S&P 500 therefore ergo it isn't the 401K crowd selling.

Misean's picture

Twas responding to "this has been one weird stock market." It's sooooooooo alpha to care about individual stocks.

buzzsaw99's picture

Roger. I don't know who junked you it wasn't called for.

HUGE_Gamma's picture

talk about a trending stock, i doubt anyone put this POS in a retirement portfolio earlier this year @ 50

Misean's picture

It's easier for Brian and the boyz to keep stocks up with low volume. Too much volume would wake the baby bumblers and get them all grumpy.

FreeNewEnergy's picture

Just for the record, some of us can't sleep and we're already quite grumpy.

treemagnet's picture

How long before they have a broader market "stock split"?!  There, see - we've got lots of stocks now...stop worrying Tim, this will work!

Cdad's picture

And now we see Duncan Niederauer's urgent motivation to sell the historic floor of the NYSE instead of selling his options into a vacuum.  Duncan takes the cake in the category of capital destruction.

So much for creating value through mergers.  Another financial genius stands naked in the retreating surf.  

Of course, one can see all of this by simply pulling up a long term chart of the shares.  

Ruffcut's picture

The past volume was relevant to high freaky trading.

Don't forget, that BAC went from 5 mill shares to 8, shit bank four times dilution so you needed volume to keep the ponzi shares entering the market.

Of course, they made a shitload on algo scalping to boot. Quarters of no losing days.

"thats hard work, running computers, working hard, screwing our clients and taxpayers, working hard, bitchezz..."

Mr Lennon Hendrix's picture

Tsunami warning:  Get to high ground.  The top of the silver mountain is safe and I am here nearly alone.  Gold mountain looks nice too.  No one is on Platinum mountain except DoChen.  He makes for nice company ;)

Hansel's picture

I've built quite a habitat out of the Great Pacific Garbage Patch.  My island will rise and fall with the tsunami, as I play Kevin Costner in my own Waterworld.

firstdivision's picture

S will be the new C on the NYSE

Waterfallsparkles's picture

There was a time when the volume was (which was good volume) from traders and not HFT Computers.

HFT drove all of the "Traders" out of the Market so they could stabilize the price and ping it back and forth for a penny all day.

Just think what volume would  be without HFT Computers.  The Market would be dead, although, I think the Market already is dead.

malcom x's picture

Dont know what all the noise is about, but this is a very very efficient market.  Here is an example that everyone should see as a perfect reflection of an efficent market TNA (tripple long Russle 2K) + 3.25%, TZA (the exact mirror of TNA, but tripple short Russel 2K) = -3.73%.  See, I told you it is a very very effient market that clearly reflects either the upward movement of russel or down movement of russel 2K X 3.  Tyler might explain better, but I just wanted to clear the air and make sure eveyone understands how this market works very efficiently is all.  So, stop you complaining, and give us your money.  OOPS, I meant bet.  (been a reader for two years, first time writer.  So, please take it easy on the junk bit).

lunaticfringe's picture

I was gonna junk ya until I saw that last line.