Trading Is Now Exclusively An After Hours Affair

Tyler Durden's picture

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Project Mayhem's picture

"Yes, I'd like to speak with Ms Mary Shapiro. . .    . . .     . . .   Oh.    She's out to lunch?    Ah yes fresh seafood is delicious.   Squid, you say?    Well please have her call 888-QUI-ZERO  once she finishes her vampire calimari.  Thanks"

Assetman's picture

Now THAT was pretty funny! :)

straightershooter's picture

Silence

Exchange

Critics

'nuf said. Now, leave me and my bloody mary alone.

Lovely,

 

Gilgamesh's picture

Stop

Expecting

Compliance

 

Yours Truly,

Mary S

tahoebumsmith's picture

Nothing but a One Trick Pony, I guess this is what happens when you run out of options?

andrew123's picture

Tyler, didn't the ubver bears at socgen say they would change their stance if the spy (futures?) stayed above 1020 for 4 straight days?  Is it crazy to think the spy got jammed today with taht in mind?

andrew123's picture

Tyler, didn't the uber bears at socgen say they would change their stance if the spy (futures?) stayed above 1020 for 4 straight days?  Is it crazy to think the spy got jammed today with that in mind?

msorense's picture

I think you mean Bob Janjuah from RBS.  Four consecutive days above 1022 which has been far exceeded.  I too am very anxious to hear his latest thoughts.

Anonymous's picture

Can someone explain to a semi newbie why this is
against regulations technically?

Anonymous's picture

Meaning?

RobotTrader's picture

"Investors" are clamoring to buy those sectors which were "resilient" to today's selloff:

Assetman's picture

Only one of those windows is actually occupied.

Gilgamesh's picture

Boy do they love to gun that IYR into the close everyday (eat your heart out SPY).  Was just minutes and cents away from closing at the high of the day for something like 9 of the last 10 days.

Careless Whisper's picture

How could you forget New York's latest skyscraper? The building with no name, only an address. (They discreet). The building that look's like a giant ps3 with windows. Only a few more weeks and Goldman moves in. 200 West Street:

http://wirednewyork.com/forum/showthread.php?p=294648

 

Hephasteus's picture

I don't see how you expect them to play I win until they know everybody's hand. Come on. How else can they do it?

James Beeland Rogers Jr.'s picture

Nobody is willing to take the lead in enforcing rule of law in America.

 

Very sad sight indeed.

JohnKing's picture

Mary will order an immediate robust discussion in regards to this phenomena.

 

Hephasteus's picture

Without going into details which may harm investigations which may or may not be happening depending on if the threatening senator has a loaded gun behind the podium or one with blanks.

Anonymous's picture

most of that is the closing auction, and this is just SPY ETF. most of the ETFs are heavy into the close.

Anonymous's picture

heaven help someone inform these clowns about how the market closes.

Anonymous's picture

So the SEC should investigate whether after-hours trading is now illegal/immoral? I'm not sure I get it...

Anonymous's picture

Tyler-

double check spy and djia at 330-4pm ET last 6 months. notice the hot money flows? this in my view is 'cash for crap' using taxpayer funds to artificially inflate equity prices.

investigate this.

Anonymous's picture

Tyler-

double check spy and djia at 330-4pm ET last 6 months. notice the hot money flows? this in my view is 'cash for crap' using taxpayer funds to artificially inflate equity prices.

investigate this.

Missing_Link's picture

Let me play devil's advocate for a sec.

Do not millions of Americans have a huge chunk of their earnings in 401(k) plans?

Americans have a big chunk of their household wealth in their 401(k) plans, and the American consumer is a big chunk of the world economy (and the part that's been hurting the most since 2007).  Inflating the stock market does improve Americans' bottom line and also improve their confidence, making them feel like they can spend safely again.

So inflating the market, irrational as it seems based on the current and near-future state of the economy, really does help drive spending again.

 

Granted, the entire notion of having so much of one's compensation tied to the irrational stock market (and moreover, locked in with a pure buy-and-hold strategy which we should realize by now is suicidal) is a horrendous idea.

But the fact is that the 401(k) exists, and as long as it does, lifting the stock market will drive spending, which will help the world economy.

Anonymous's picture

I love these comments about how "buy and hold is dead!"

If your idea of "history" is the past 10 years, then yes, buy and hold is dead. Perhaps it would be worth a little of your time, when you're not making sweeping generalizations on the internet, to look into the long-term history of the market -- a market that has, over appx 80 years, return >12% per year.

How do you answer to that?

Grog's picture

If you have 80 years to go, I'd term that an overextended time horizon.

If not, look at Japan over the last 20 years. 

 

 

wait event's picture

You may want to glance at the upper right corner of this page and read what's to the right of that "O" with the "H" in the middle. 

Anonymous's picture

oh, yes, we all need a "guaranteed" return on our investment

oh, wait, that's called social security

oh, wait, that didn't work either

Anonymous's picture

my dad and brother ran a successful oil company employing several dozen people...for a while

the bottom fell out during the second reagan term, he disbanded the company when his savings...net worth hit a little less than one million... and got diagnosed with cancer one month later

they gave him 6 months to live but an incredible surgeon in nyc saved his life

now my dad and mom live on social security

ss has drawn more revenue than expended since inception

the system is good, the fund has been raided...i call that theft

mock turtle

Anonymous's picture

I fail to see the story here. Unless I'm missing something major, heavy trading within the last five minutes (where the gap gets closed, not after hours) has been a feature of Wall Street since they traders gathered in the shadows of the legendary buttonwood tree.

Oh, wait, no, my mistake. Right here, under little-known Rule 11a1-1(T)(c)-7 of the '34 Act:

7. No member of any exchange shall effect an order on that exchange within the last five (5) minutes of open trading, or in post-closing trading thereafter, in such a way as to raise the suspicions of anonymous bloggers regarding the intentions of said member.

Looks like the SEC's been sleeping on the job again.

Anonymous's picture

similar in spirit to not condoning monopolies, unfair pricing/dumping practices...

so controlling volume and price(ie not providing liquidity) along with possibly short interest and stop levels info(which others do not have knowledge of) in order to effect shortcovering of smaller players who otherwise wouldn`t have had to if under normal market forces of stock value perception.

flyfe's picture
flyfe (not verified) Sep 1, 2009 12:13 AM

"these are not the droids we are looking for. move along , move along." ;-)

good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions

Balab's picture

Yeah...was just watching the ES and the onslaught of volume at bid / ask that occurred just after the close.  After hours to Market hours bid to ask volume ratio = 4.56:1 (estimated)   

Leo Kolivakis's picture

One more example of how they rig the markets to their benefit. If you trade, be there at the open, and at the close and take off the rest of the time. Silly isn't it?

Anonymous's picture

The SEC's job is to publicly lynch a little fish once in a while to show how tough they are. Meanwhile, the big guys can continue royally screwing everyone from behind a very thin smoke screen.

walküre's picture

I've traded on the "ramp" a few times now and it works. Results are so so but at least there's a consistency that one can take advantage of. Just make sure not to leave money on the table bc the stock, etf whatever might open lower than where you bought at 12pm the day before.

Come to think of it, this trading works great for us Westcoasters. Don't have to get up at 6am anymore to catch a crumb.

Anonymous's picture

This happens on the last trading day of every month. Mutual funds, who have been holding ETF's all month long, need to appear as if they actually do some work to earn their fees, so switch out of the ETF's for individual stocks when the end-of-month snapshot of their holdings is taken. Thus, their investors get the impression that some day-time work is being done at the company to whom they pay the fees. The houses assist the roll-out, and roll-in, then try to square up some of the positions after hours.

Couple this with some option activity, and you've got no prosecutable offense, just something offensive to the sensibilities of fair-minded people.

flyfe's picture
flyfe (not verified) Sep 1, 2009 12:13 AM

SPY isn't down at all in AH. It's up 7 cents

good articles; good articles 4 slow news day ..http://www..
hat tip: finance news & finance opinions

Anonymous's picture

Could the after-hours spikes come from dark pools reporting (delaying reporting?) cross matches and long-running transactions? I've seen a lot of these funny candlesticks pointing towards VWAP-- like what folks using dark pools are seeking.

Anonymous's picture

I don't even know why TD complains(of course I know why,and for that he should be given an award for opening people's eyes). I am sure he knows that Cox was changed because it is about time to pump up the market,after trillions of retirees money have been transferred. "mission accomplished" was declared by GS and company,and now it is time for another bubble build up. and for that, we need personnel change...........

Anonymous's picture

test

yeah im stupid

Mediocritas's picture

I say get rid of AH trading all together. Markets will work fine without it and maybe it will encourage traders to ease up on the Red Bull / meth / crack, get some sleep and learn how to think again.

Anonymous's picture

Is it possible the ramp in early after-hours was just "late reports" of dark pool trades?