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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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Mon, 05/09/2011 - 16:13 | 1256711 kushmere
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?

Mon, 05/09/2011 - 16:15 | 1256723 Pladizow
Pladizow's picture

Buy PM's.

Mon, 05/09/2011 - 17:04 | 1256908 Thorlyx
Thorlyx's picture

also known as:

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

Mon, 05/09/2011 - 21:56 | 1257744 Votewithabullet
Votewithabullet's picture

Kushmere must be timmays new ID trolling for laughs.

Tue, 05/10/2011 - 03:45 | 1258292 Titus
Titus's picture

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

Mon, 05/09/2011 - 16:14 | 1256729 HUGE_Gamma
HUGE_Gamma's picture

its trading volume in millions of shares..

BTW- 420 always works as the gotcha answer

Mon, 05/09/2011 - 16:49 | 1256757 Sudden Debt
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.
1%!

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

Mon, 05/09/2011 - 16:37 | 1256799 Re-Discovery
Re-Discovery's picture

kushmere

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.

 

Mon, 05/09/2011 - 22:04 | 1257767 Votewithabullet
Votewithabullet's picture

kushmere

 

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

Mon, 05/09/2011 - 16:14 | 1256716 Robslob
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...

Mon, 05/09/2011 - 16:19 | 1256740 Rynak
Rynak's picture

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

Mon, 05/09/2011 - 16:26 | 1256764 falak pema
falak pema's picture

when in doubt make love to your wife

 

Mon, 05/09/2011 - 19:51 | 1257431 Lets_Eat_Ben
Lets_Eat_Ben's picture

.

Mon, 05/09/2011 - 16:12 | 1256718 oogs66
oogs66's picture

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

 

Mon, 05/09/2011 - 16:27 | 1256766 Sudden Debt
Sudden Debt's picture

THE hypno powers of historic charts.

Just look to Yahoo how THE lemmings go nuts on Citigroup

Mon, 05/09/2011 - 21:51 | 1257737 Libertarian777
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.

Mon, 05/09/2011 - 16:14 | 1256720 HUGE_Gamma
HUGE_Gamma's picture

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

Mon, 05/09/2011 - 16:14 | 1256728 Seacap81
Seacap81's picture

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

 

 

Mon, 05/09/2011 - 16:17 | 1256734 Ivanovich
Ivanovich's picture

Why, because those markets aren't manipulated?

Mon, 05/09/2011 - 16:32 | 1256780 Seacap81
Seacap81's picture

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

Mon, 05/09/2011 - 16:45 | 1256832 LaLiLuLeLo
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!!!

Mon, 05/09/2011 - 16:15 | 1256730 max2205
max2205's picture

i vote for CROX

Mon, 05/09/2011 - 16:19 | 1256736 IEVI
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

 

 

 

Mon, 05/09/2011 - 16:26 | 1256752 Tortfeasor
Tortfeasor's picture

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

Mon, 05/09/2011 - 16:28 | 1256767 falak pema
falak pema's picture

Normacol?

 

Tue, 05/10/2011 - 01:25 | 1258194 StychoKiller
StychoKiller's picture

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

Mon, 05/09/2011 - 16:18 | 1256739 Confucious 222
Confucious 222's picture

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

Mon, 05/09/2011 - 16:53 | 1256864 fockewulf190
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. 

Mon, 05/09/2011 - 17:44 | 1257075 Ricky Bobby
Ricky Bobby's picture

+1 LOL

Mon, 05/09/2011 - 16:19 | 1256742 IdiotInvestor2
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.

Mon, 05/09/2011 - 16:27 | 1256755 Misean
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.

Mon, 05/09/2011 - 16:28 | 1256771 suldog
suldog's picture

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

Keep watching.

Mon, 05/09/2011 - 16:42 | 1256819 Pladizow
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!

Mon, 05/09/2011 - 16:37 | 1256806 buzzsaw99
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.

Mon, 05/09/2011 - 17:26 | 1256988 Misean
Misean's picture

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

Mon, 05/09/2011 - 21:01 | 1257593 buzzsaw99
buzzsaw99's picture

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

Mon, 05/09/2011 - 16:25 | 1256760 HUGE_Gamma
HUGE_Gamma's picture

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

Mon, 05/09/2011 - 16:21 | 1256743 Misean
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.

Mon, 05/09/2011 - 16:58 | 1256888 FreeNewEnergy
FreeNewEnergy's picture

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

Mon, 05/09/2011 - 16:27 | 1256756 treemagnet
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!

Mon, 05/09/2011 - 16:28 | 1256770 Cdad
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.  

Mon, 05/09/2011 - 16:29 | 1256773 Ruffcut
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..."

Mon, 05/09/2011 - 16:32 | 1256779 Mr Lennon Hendrix
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 ;)

Mon, 05/09/2011 - 17:04 | 1256905 Flakmeister
Flakmeister's picture

And Flak makes three....

Mon, 05/09/2011 - 19:29 | 1257367 Hansel
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.

Mon, 05/09/2011 - 16:30 | 1256783 firstdivision
firstdivision's picture

S will be the new C on the NYSE

Mon, 05/09/2011 - 16:33 | 1256785 Waterfallsparkles
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.

Mon, 05/09/2011 - 16:48 | 1256848 malcom x
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).

Mon, 05/09/2011 - 17:02 | 1256900 lunaticfringe
lunaticfringe's picture

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

Mon, 05/09/2011 - 17:08 | 1256907 fellatio is not...
fellatio is not fattening's picture

Won't junk you but dude don't you have spellcheck?  Tripple = triple  Russel = Russell eveyone = everyone  effient = efficient stop you complaining = stop youR complaining and I won't even start on punctuation.

Oh yeah, Malcom = Malcolm  fucked up your own name although you did spell X correctly

Mon, 05/09/2011 - 17:19 | 1256958 Waterfallsparkles
Waterfallsparkles's picture

For Spell check just right click on a word with your mouse.  Spell check comes up.  Works great.

Mon, 05/09/2011 - 17:55 | 1257110 malcom x
malcom x's picture

Thanks for the spell check, too much after life scotch here.  As for my name, I did know that, but assumed the real one was taken, so registered without the "L"  But again, do appreciate the not junking bit.

Mon, 05/09/2011 - 19:29 | 1257365 Sophist Economicus
Sophist Economicus's picture

I junked you for the heck of it

 

welcome aboard - or is a abored?

Mon, 05/09/2011 - 20:03 | 1257462 VegasBD
VegasBD's picture

+wun

Mon, 05/09/2011 - 18:03 | 1257125 Zero Govt
Zero Govt's picture

i think that's a junking in all but the button Fallatio... savage spell-checking!!!

Malcom if you're worried about being junked you're in the wrong place... speak your mind or dont speak at all (or join the souless crones of the diplomatic core)

Mon, 05/09/2011 - 16:37 | 1256798 treemagnet
treemagnet's picture

Anybody know the "stall speed" on this thing?

Mon, 05/09/2011 - 17:23 | 1256963 cosmictrainwreck
cosmictrainwreck's picture

now that would be a very interesting project/calculation for one of the wizards on the site.....CogDis? you up for it? all kinds of high-powered math and modeling: integrate financial, economic, psych & aerodynamics, have to put in a HFT factor and a FUDGE factor and..... <head spins>

Mon, 05/09/2011 - 17:24 | 1256970 equity_momo
equity_momo's picture

Same as the Air France Airbus that went down in the Atlantic.  This market is in Coffin Corner.

Mon, 05/09/2011 - 19:34 | 1257388 Sophist Economicus
Sophist Economicus's picture

Footsie has been having trouble staying aloft lately, had a key reversal in past week.    It correlates nicely with our markets - sort of a canary in a coal mine

Somebody better push that stick forward -- OK, I'm done with the flying analogy

 

Mon, 05/09/2011 - 16:36 | 1256802 Ancona
Ancona's picture

Looks like the algo's have figured out how to fuck their own ass!

Mon, 05/09/2011 - 17:34 | 1257044 Saxxon
Saxxon's picture

Yes indeed Ancona; a kind of perverse Ourobouros . . . may the shithouse go up in flames . . .

Mon, 05/09/2011 - 16:41 | 1256818 buzzsaw99
buzzsaw99's picture

We don't need no steenking volume.

Mon, 05/09/2011 - 17:15 | 1256940 Mach1513
Mach1513's picture

Volume kills

Mon, 05/09/2011 - 17:28 | 1257006 6_7_42
6_7_42's picture

+ 1 but we do need badges

Mon, 05/09/2011 - 18:27 | 1257201 Zero Govt
Zero Govt's picture

badges for watching paint dry on this rally

Mon, 05/09/2011 - 16:39 | 1256823 gall batter
gall batter's picture

"when you got nothing, you got nothing to lose." B. Dylan

Mon, 05/09/2011 - 16:41 | 1256830 monopoly
monopoly's picture

At some point reality will rule. I just have no idea when. How can so many know so little about what is transpiring on this planet? Have we become a sea mass of idiots looking to big brother to take care of us. What has happened to us? How can so much greed destroy so much that was good.

And our children will pay the real price. Thank goodness I can leave her a few gold coins.

Mon, 05/09/2011 - 17:38 | 1257058 Saxxon
Saxxon's picture

Very simple: We'll just wake up and the markets will be locked limit-down.  And again the next day.  On Day Three the internet will not work.  After that it's National Guardsmen at every pump station, bullhorns, choppers and roadblocks.

Mon, 05/09/2011 - 20:07 | 1257474 VegasBD
VegasBD's picture

I just got a ticket for using my bullhorn this weekend. I dont think they like competing 'crowd control' devices in the public's hands.

 

Of course i was drunk as shit and in newport beach...for not sure gonna claim that i didnt deserve it. =)

Mon, 05/09/2011 - 20:15 | 1257483 onarga74
onarga74's picture

That's strange.  I was arrested there because I wasnt drunk.

Mon, 05/09/2011 - 16:43 | 1256836 jedwards
jedwards's picture

If you look at the volume traded up to 4:00pm, it was well below 600 million shares on the NYSE.  

Mon, 05/09/2011 - 16:52 | 1256873 Spigot
Spigot's picture

Two words: 'Potemkin Market'. That's all you or me needs to know.

Mon, 05/09/2011 - 17:13 | 1256930 Mach1513
Mach1513's picture

And from Bespoke I.G.:

"just 60% of US companies have beaten earnings per share estimates this earnings season.  In the early stages of the reporting period, the "beat rate" was much higher, but it has drifted lower and lower to its current level as earnings season has progressed"

Worst "performance" sine 2008

Getting harder to fudge the numbers....

Mon, 05/09/2011 - 17:17 | 1256945 RobotTrader
RobotTrader's picture

No worries.

I'm sure GLD will do a 10:1 split, then SLV and GLD will take up the slack....

Mon, 05/09/2011 - 17:22 | 1256960 Zer0henge
Zer0henge's picture

reverse split bitchez

Mon, 05/09/2011 - 17:44 | 1257072 malcom x
malcom x's picture

Who junked me?  I just need a name and address, lead is coming your way as it did mine mf.

Mon, 05/09/2011 - 18:25 | 1257187 Robslob
Robslob's picture

I did...reading for 2 years, first time poster and only a member for 5 weeks gets the junk for:

1) Non participation

2) Caring that you got junked

3) Possibility of being a troll.

PS I always accept free lead, silver, gold etc...

Mon, 05/09/2011 - 19:01 | 1257275 Jendrzejczyk
Jendrzejczyk's picture

The boneheads caused an earthquake at the bottom of Exeter's pyramid. It will only serve to shake the money farther down.

Mon, 05/09/2011 - 21:51 | 1257735 The Axe
The Axe's picture

I believe no issue that ZH has ever touched on is more important then the HTF and volume issue.plus the ETF connection to HTF trading..and the overall volume. AS ZH has told the world...the market is a Alice in Wonderland no more..a ruse..

Mon, 05/09/2011 - 22:11 | 1257782 jkruffin
jkruffin's picture

On a side note, went to Tanger Outlet at Myrtle Beach this weekend.  Place was dead as a doornail.  All those major brand name store outlets were empty. The only one that had a good flow of traffic was Coach who had 50% about everything in the store, and an additional 30% off coupon. Last time I seen it this dead was during a very cold day in the winter. That I could understand, but not last weekend, it was 85 and sunny.  Even the boardwalk at the beach was dead.

I don't think this economy is coming back.........not for a long time. I don't care what lies CNBC or Obama tells people. No sales plus margins getting pinched = 2008 all over again.

Tue, 05/10/2011 - 00:50 | 1258133 BlackholeDivestment
BlackholeDivestment's picture

Algo No Volume, Citi life is just a Fantasy http://www.youtube.com/watch?v=GylirgHFqeQ

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