This page has been archived and commenting is disabled.

Tiger Woods' Apology Causes Greater Market Volume Spike Than FOMC Discount Rate Hike Announcement

Tyler Durden's picture




 

When Tiger's speech causes a more dramatic volume impact than the FOMC you know this market is all sorts of perfectly efficient. Bloomberg's chart of the day below shows the total NYSE volume change in-between when Tiger started his convoluted and meandering mea culpa, and when he ended.

Curiously (or not at all once you realize that algos now have a low volume trigger for activating buying programs), in the period when there was no trading volume, the market jumped, only to see the new baseline level as of the end of his speech be today's resistance level.

In a Bloomberg TV interview Mark Crumpton notes:

“beginning around 11:00 a.m. New York time a trading decline during the time of that statement. Trading on all U.S. exchanges declined during Woods' conference, falling to 456 million shares from an average of 576.8 million during the five previous 15-minute segments, data compiled by Bloomberg shows. New York Stock Exchange trading fell to about 100,000 shares in the minute the speech began, the lowest of the day, then shot above 600,000 when it ended, the highest for any period except just after exchanges opened.”

Of course, by the time traders came back to their desks, the fume-volume algo had already taken the market substantially higher to the new resistance level.

 

- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Fri, 02/19/2010 - 16:22 | 238016 Rick64
Rick64's picture

Big story of the day that has been hashed and rehashed for how many weeks. Quick hit the turbo button while nobody is looking.

Fri, 02/19/2010 - 22:30 | 238332 velobabe
velobabe's picture

bet ya he gave buddhism a spike at the same time period, too. cause the dalai lama was accepting his democracy award in the congress library at the exact time. sending out some zen.

year of the (metal) TIGER

Fri, 02/19/2010 - 16:23 | 238017 Postal
Postal's picture

Tiger, American Idol, The Great Race... You know, important stuff. Can't have finance, budgets, and other important knowledge rattling about in one's head.

[/sarcasm]

Fri, 02/19/2010 - 16:30 | 238031 Anonymous
Anonymous's picture

"When Tiger's speech causes a more dramatic volume impact than the FOMC you know this market is all sorts of perfectly efficient." Think the term 'perfectly schizophrenic' is more apt...

Fri, 02/19/2010 - 16:30 | 238033 lsbumblebee
lsbumblebee's picture

"At approximately 11:06 AM a fight broke out when one of the robots wanted to watch Bonanza".

Fri, 02/19/2010 - 18:10 | 238171 35Pete
35Pete's picture

+1

Fri, 02/19/2010 - 18:23 | 238185 Anonymous
Anonymous's picture

That is about the funniest thing I have read in weeks...I am still chuckling. Thanks.

Fri, 02/19/2010 - 19:40 | 238255 Anonymous
Anonymous's picture

I bow at your feet.

Fri, 02/19/2010 - 21:35 | 238343 wackyquacker
wackyquacker's picture

even my wife liked that one

Fri, 02/19/2010 - 16:39 | 238050 Wynn
Wynn's picture

Poor Tiger, he sold his soul to the machine, and now he can't get out.

Fri, 02/19/2010 - 16:39 | 238054 Psquared
Psquared's picture

I thought it was a breath of fresh air - obviously not prepared by a professional PR person. You will never hear a mea culpa from Wall Street except to say the devil made me do it.

Fri, 02/19/2010 - 21:27 | 238334 Anonymous
Anonymous's picture

farking hilarious - yeah, that was totally off the cuff, I was looking for the strings, dude obviously hashed that out on a napkin at rehab. I is all rigged - "he is obviously in recovery, that was step 9, making amends"...since when was the 12 step program a race? Dude has been in "recovery" for a whopping month, lol.

Sat, 02/20/2010 - 00:35 | 238453 Unscarred
Unscarred's picture

ESPN's Bill Simmons (probably the best sports writer in America today) had a GREAT column discussing the press conference.

When we first saw the room in Ponte Beach Verde, Fla., it looked like the start of a "Saturday Night Live" episode: small podium, blue curtain, some heads. The camera panned the crowd, revealing that there apparently had been an emergency casting call for somber white people in blazers. (Why didn't I get an invite? I own a blazer! I could have looked somber!) At 11:01 a.m. ET, Tiger emerged from the back, and I remember thinking that it would have been awesome if he were naked from the waist down.

 

He spoke for the next 13 and a half minutes. He spoke … like this. There was … no emotion … in his words. His face … was blank … and empty. Part of me … felt bad … for him. There were … a couple of moments … when it seemed … like … he was trying … to shed a tear … or have his voice catch … just for effect. You get … the idea...

 

In "A Few Good Men," one of my favorite scenes is when Kevin Bacon is cross-examining the guy from "ER" and asks him why "Code Red" isn't in the rulebook, then Tom Cruise redirects and points out that the mess hall isn't in there, either. Remember that? "So how do you know how to get to the mess hall?" You just follow the crowd. That's the answer. And that's what Tiger did this decade. He followed the crowd. He just got caught.

Classic Sports Guy.

Sat, 02/20/2010 - 10:25 | 238644 velobabe
velobabe's picture

priceless, bill simmons he is the new black.

Fri, 02/19/2010 - 16:46 | 238059 CB
CB's picture

this confirms it. the US is totally circling the drain.

Fri, 02/19/2010 - 16:51 | 238064 Cognitive Dissonance
Cognitive Dissonance's picture

Is that clockwise or counter clockwise? Just asking? Sometimes the details are important. :>)

Fri, 02/19/2010 - 16:58 | 238073 CB
CB's picture

is this a trick question?

Sat, 02/20/2010 - 00:13 | 238438 bulldung
bulldung's picture

Depends on whether Tiger is playing in the Northern or Southern hemisphere.

Fri, 02/19/2010 - 16:47 | 238060 Hephasteus
Hephasteus's picture

The ISDA is in full swing pulling it's derivitives bullshit that caused California to have all the rolling brownouts after thier little fuck over from Enron.

http://news.cnet.com/8301-11128_3-10456435-54.html?tag=newsEditorsPicksA...

Fri, 02/19/2010 - 16:59 | 238074 Wynn
Wynn's picture

Has google initiated its plan of world domination, or what?

Good thing their motto is "Do No Evil". lol

Fri, 02/19/2010 - 17:01 | 238079 Hephasteus
Hephasteus's picture

Ya it's like that movie. Mars Attacks. The alien gets the little translator and runs around saying "Do not run we are your friends" as he blasts everyone to green or red dust.

Sat, 02/20/2010 - 01:45 | 238498 faustian bargain
faustian bargain's picture

hm. I just realized that 'do no evil' backwards is "Live On O.D."

Sat, 02/20/2010 - 11:31 | 238675 Hephasteus
Hephasteus's picture

Their motto is actually "Don't be evil".

Fri, 02/19/2010 - 16:57 | 238071 Anonymous
Anonymous's picture

can anyone explain to me why comex silver is up 3% but AGQ is only up 1.3 %.

I thought this fucker tracked Comex silver 2 to 1. By my heightened math skills that means AGQ should be up 6%. wtf?

Sat, 02/20/2010 - 01:47 | 238499 scriabinop23
scriabinop23's picture

comex silver settles a bit before the market.

 

 

Fri, 02/19/2010 - 17:00 | 238077 Eduardo
Eduardo's picture
Ah... finally! ZH placing the atention were it was needed !

 

Fri, 02/19/2010 - 17:12 | 238089 Stuart
Stuart's picture

without overstating it too much about Tiger Woods.... I could not give a rat's ass what he did, what he does, what he said.   He is just not that important. 

Fri, 02/19/2010 - 17:24 | 238107 George the baby...
George the baby crusher's picture

You don't, but the algos do.  They have become socially appt.  Now this is exciting.

Fri, 02/19/2010 - 18:12 | 238176 35Pete
35Pete's picture

Hmm. So if I were able to get a heads up in advance of who gets tossed off the island next week that would be considered insider trading? 

Fri, 02/19/2010 - 18:15 | 238179 George the baby...
George the baby crusher's picture

Only if you're an algo, I think.

Fri, 02/19/2010 - 18:28 | 238190 35Pete
35Pete's picture

So a pre-screening of next week's episode of Survivor is a form of frontrunning if the algo get a whiff of it? 

Fri, 02/19/2010 - 17:36 | 238115 Andrei Vyshinsky
Andrei Vyshinsky's picture

Well that's the point isn't it. It was an act of the most monumental egotism for Woods to make a public apology of the kind he's made here. Who besides his wife and family did he injure? Not me certainly. And, if anything, specifically to identify the cheating in public does nothing but exacerbate the injury to his wife. This guy has learned nothing. He should make his amends in private and only to those who've made an investment in him spiritually - his wife and family. Beyond that the whole thing is an exercize in narcissism.

Fri, 02/19/2010 - 19:15 | 238236 faustian bargain
faustian bargain's picture

Well...there is the issue of his sponsors...

Fri, 02/19/2010 - 20:22 | 238282 Rainman
Rainman's picture

....and there is the issue of all the paychecks in the PGA prize and ad pool . Unlike other sports, except maybe boxing, this dude WAS the whole franchise.....at least until another stud player dominates the course.

Dude on top blowing himself up. A familiar story for the ages.

Tiger's really a man-child and very emotional. Wheels came off when his old man died and wasn't around to give him a swift kick in the ass....which was probably the only thing he really feared.  

Fri, 02/19/2010 - 23:10 | 238386 WaterWings
Fri, 02/19/2010 - 17:14 | 238093 Anonymous
Anonymous's picture

This is the best article or atleast the one I got the most from on ZH so far. Sorry I'm still anon, haven't gotten approval to post as a member yet.

You guys lay it out in obvious fashion, beautiful man! Wow, the santa clause rally was a holiday (markets went up). This week was President's day (markets go up in face of horrible news).

The bottom line:
This week = computer driven rally not to be trusted.

There's no holiday next week but the averages are all over their 50 day sma even if it took a tick after the closing bell to put the S&P over it's 50 day sma.

Fri, 02/19/2010 - 17:22 | 238105 Anonymous
Anonymous's picture

SIZE DOES MATTER.....BITCH!!!!!

http://www.youtube.com/watch?v=UOoXZe_S3wI

Fri, 02/19/2010 - 17:22 | 238106 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

"I drink champaign in the hood/I drink champaign with Tiger Woods.  Huah!  Tiger Woods yall....Its all good yall...."

I hear the word tiger way too much in the mainstream. 

Chris Rock - Champagne:

http://www.youtube.com/watch?v=zZqlX7mIh6U

Fri, 02/19/2010 - 17:48 | 238136 Chopshop
Chopshop's picture

it feels good to your brain baby

Fri, 02/19/2010 - 17:47 | 238129 Chopshop
Fri, 02/19/2010 - 17:47 | 238132 Anonymous
Anonymous's picture

This low volume turbo button hitting trick is why I think Bidderman doesn't see the fund flows necessary to run er up.

Fri, 02/19/2010 - 18:02 | 238158 SRV - ES339
SRV - ES339's picture

Good post... surely CNBC is using the data in an upcoming expose' on the damage HVT is doing to the market (and it's role in market manipulation) as we speak... "don't ya think!"

Seriously... an interesting, and telling, observation (graphically demonstrating the market manipulation)... if only there was just a chance something will change as a result.

Fri, 02/19/2010 - 18:53 | 238217 Anonymous
Anonymous's picture

I can't imagine how the euro will behave when the world cup begins.

Fri, 02/19/2010 - 18:58 | 238221 Anonymous
Anonymous's picture

TYLER -

This just shows how the machines are running the show now...in case there is still any doubt.

Some of us who were working on a busy trading floor in Oct '95, when the OJ verdict came out, remember that volume WENT TO ZERO for a few minutes. It was one of the most surreal market moments ever.

Lots of quants took their shiny new, updated news driven models out of the hanger today I think.

Fri, 02/19/2010 - 19:07 | 238226 Anonymous
Anonymous's picture

Interesting. Low volume usually marks a Market top.

It appears to me that when volume dries up they are ranping the price looking for Shorts to cover. As the price goes up Selling dries up also. People are greedy will not sell because they want the very last penny.

Sat, 02/20/2010 - 00:21 | 238443 bulldung
bulldung's picture

+1 ,never use stops with short ETFs

Sat, 02/20/2010 - 00:21 | 238446 bulldung
bulldung's picture

+1 ,never use stops with short ETFs

Fri, 02/19/2010 - 19:12 | 238232 MsCreant
MsCreant's picture

The market sprouted "Tiger Wood."

Fri, 02/19/2010 - 20:08 | 238271 BlackBeard
BlackBeard's picture

Holy datamining batman!

Fri, 02/19/2010 - 21:16 | 238326 Anonymous
Anonymous's picture

ABC news dedicated 8minutes to tiger tonight. What will it take to get tiger to just shut up?

In this huge world, that's all ABC news could come up with. Hope someone pulverizes ABC shares......

Fri, 02/19/2010 - 21:31 | 238340 Bear
Bear's picture

Tiger is just a metaphor for the market ... 1990 to 2007 Tiger goes from 0 to 1 Billion ... then 1 Billion to .1 Billion over a weekend ... Beware the Ides of March.

Fri, 02/19/2010 - 21:38 | 238346 Anonymous
Anonymous's picture

Tiger is just a guy.. he likes sex and romance
just like any guy.. some guys get a "Hyper - Boner"
and they feel they need 50 women or so..

he is no differnt than some of the famous basketball players over the years.. some said they took over 800 women to bed.. you know their names...

Sat, 02/20/2010 - 02:24 | 238510 dumpster
dumpster's picture

Oooh where's that tiger now)

 

Where's that tiger where's that tiger where's that tiger where's that tiger
Hold that tiger hold that tiger hold that tiger hold that tiger
Hold him choke him kick him pokin'
Where's that tiger where's that tiger where oh where can he be
Low or highbrow they all cry now where can that tiger be
[ choir ]
Whip it hard till it moans whip it hard till it groans let her grip start to clip its claw
Where's that tiger...
[ guitar ]
Where's that tiger where's that tiger where oh where can he be

Sat, 02/20/2010 - 10:29 | 238647 velobabe
velobabe's picture

whip it, [ choir ] whip it hard whip it good

http://www.youtube.com/watch?v=Xbt30UnzRWw

Sat, 02/20/2010 - 12:42 | 238712 Eally Ucked
Eally Ucked's picture

Tiger Woods influence on NYSE in simple mathematical terms (that will be topic of my PHD dissertation, if somebody wants to know).

 

Let’s say that

                                    SPn=BM*SPn-1K                     where

 

SP – S&P value

BM – Ben’s mood over night

K – Coefficient of unknown value, mostly influenced by outside events. This coefficient will be subject of our discussion,

n – index, day of the year

 

At this moment we got our most important equation ready so let’s concentrate on our equation components.

 

Our long term research and survey results show that

 

BM = 1+PMS+ BM+HEM+WT where

 

PMS = sin[(2Π/28)*n]  - PMS syndrome for Bens wife

BM = 0.1*N/(N-1) where N is number showing board meetings in given month

HEM = x/y       where x is board member number

and y is number of board members with hemorrhoids

WT = sin[(2Π/364)*n]

 

Our research team has to state that first 2 components of our equation were not too easy to quantify but we overcome all obstacles in gathering proper data (see attachment 201/20g/56). At this point we would like to thank all from BS Dept. for cooperation.

 

Coefficient K – this is really tough nut, after log deliberation our team of researchers decided that KTiger=1.06 if your ideas differ from ours, please let us know, we really appreciate your input.

Sat, 02/20/2010 - 12:57 | 238725 foxmuldar
foxmuldar's picture

Magic Johnson used to brag about all the women he slept with. Look what it got him. 

 I didn't buy anything Tiger say yesterday. It was too well rehearsed. Who were those idiots in the seats listening to Tiger? It looked like a minister giving a sunday sermon to his parishioners.

I bet Tiger is banging  some of the staff at the clinic. When he said he didn't know when he would return to golf, but it could be this year.

 Bet your bottom dollar that within a short time, Tiger will be back on the course.

Without Golf, the guy is clueless. He couldn't qualify for a job at Wallmart. JMOP

Mon, 04/19/2010 - 08:02 | 307528 Tom123456
Tom123456's picture

ucvhost is a leading web site hosting service provider that is known to provide reliable and affordable hosting packages to customers. The company believes in providing absolute and superior control to the customer as well as complete security and flexibility through its many packages. cheap vps Moreover, the company provides technical support as well as customer service 24x7, in order to enable its customers to easily upgrade their software, install it or even solve their problems. ucvhost offers the following different packages to its customers

Do NOT follow this link or you will be banned from the site!