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Trading Is Now Exclusively An After Hours Affair

Tyler Durden's picture




 

After an ~20 million cumulative volume shortfall from average until 4:00pm, volume went green for the day in the first two minutes of After Hours traing. In the meantime the SEC continues to do absolutely nothing.

 

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Mon, 08/31/2009 - 16:10 | 54325 Project Mayhem
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"

Mon, 08/31/2009 - 16:18 | 54344 Assetman
Assetman's picture

Now THAT was pretty funny! :)

Mon, 08/31/2009 - 16:21 | 54355 Hephasteus
Hephasteus's picture

LOL

Mon, 08/31/2009 - 17:08 | 54423 straightershooter
straightershooter's picture

Silence

Exchange

Critics

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

Lovely,

 

Mon, 08/31/2009 - 17:34 | 54451 Gilgamesh
Gilgamesh's picture

Stop

Expecting

Compliance

 

Yours Truly,

Mary S

Mon, 08/31/2009 - 16:13 | 54333 tahoebumsmith
tahoebumsmith's picture

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

Mon, 08/31/2009 - 16:15 | 54338 andrew123
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?

Mon, 08/31/2009 - 16:15 | 54339 andrew123
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?

Mon, 08/31/2009 - 16:24 | 54361 msorense
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.

Mon, 08/31/2009 - 16:18 | 54348 Anonymous
Anonymous's picture

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

Mon, 08/31/2009 - 16:19 | 54350 Anonymous
Anonymous's picture

Meaning?

Mon, 08/31/2009 - 16:20 | 54352 RobotTrader
RobotTrader's picture

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

Mon, 08/31/2009 - 16:23 | 54359 Assetman
Assetman's picture

Only one of those windows is actually occupied.

Mon, 08/31/2009 - 16:56 | 54414 Gilgamesh
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.

Mon, 08/31/2009 - 19:52 | 54627 Careless Whisper
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

 

Mon, 08/31/2009 - 16:22 | 54358 Hephasteus
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?

Mon, 08/31/2009 - 16:23 | 54360 James Beeland R...
James Beeland Rogers Jr.'s picture

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

 

Very sad sight indeed.

Mon, 08/31/2009 - 16:25 | 54363 JohnKing
JohnKing's picture

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

 

Mon, 08/31/2009 - 16:29 | 54368 Hephasteus
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.

Mon, 08/31/2009 - 16:34 | 54381 Anonymous
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.

Wed, 09/02/2009 - 02:34 | 55893 Anonymous
Anonymous's picture

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

Mon, 08/31/2009 - 16:39 | 54390 Anonymous
Anonymous's picture

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

Mon, 08/31/2009 - 16:45 | 54400 Anonymous
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.

Mon, 08/31/2009 - 16:46 | 54401 Anonymous
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.

Mon, 08/31/2009 - 18:00 | 54487 Missing_Link
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.

Mon, 08/31/2009 - 20:44 | 54656 Anonymous
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?

Mon, 08/31/2009 - 22:42 | 54723 Grog
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. 

 

 

Tue, 09/01/2009 - 00:18 | 54771 wait event
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. 

Mon, 08/31/2009 - 22:29 | 54713 Anonymous
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

Tue, 09/01/2009 - 00:23 | 54776 Anonymous
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

Mon, 08/31/2009 - 16:47 | 54402 Anonymous
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.

Mon, 08/31/2009 - 17:29 | 54444 Anonymous
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.

Tue, 09/01/2009 - 00:13 | 54564 flyfe (not verified)
flyfe's picture

"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

Mon, 08/31/2009 - 16:47 | 54403 Balab
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)   

Mon, 08/31/2009 - 17:42 | 54460 Leo Kolivakis
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?

Mon, 08/31/2009 - 17:50 | 54474 Anonymous
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.

Mon, 08/31/2009 - 18:09 | 54496 walküre
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.

Mon, 08/31/2009 - 18:26 | 54524 Anonymous
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.

Tue, 09/01/2009 - 00:13 | 54559 flyfe (not verified)
flyfe's picture

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

Mon, 08/31/2009 - 19:30 | 54609 Anonymous
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.

Tue, 09/01/2009 - 00:20 | 54774 Anonymous
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...........

Tue, 09/01/2009 - 00:26 | 54779 Anonymous
Anonymous's picture

test

yeah im stupid

Tue, 09/01/2009 - 04:16 | 54844 Mediocritas
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.

Tue, 09/01/2009 - 14:13 | 55230 Anonymous
Anonymous's picture

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

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