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This Is What A $130 Million Market Levitating Fat Finger Looks Like

Tyler Durden's picture


Earlier we reported on a completely inexplicable 10% surge in the IWR ETF resulting from a whole lot of busted trades. We didn't know precisely how many trades were involved until the kind folks at Nanex sent us this cheat sheet. The answer: 1,379,128 shares of IWR! Which, at the prices crossed, amounts to just over $130 million. We wonder: which algo could afford to lose $130 million on what in retrospect was a busted fat finger, and just what is the purpose of lifting every single offer into an offerless market beyond the point of ridiculousness? Luckily, the trades, which crossed just after close, did not happen 5 minutes earlier, or the market would have seen a fully blown inverse flash crash, carrying across all asset classes. On the other hand, we know of one person who is very focused on the Russell 2000 as an indication of the overall strength of the economy. Is the Fed now, in perpetuating its 3rd mandate, solely focused on buying IWR (and/or other) ETFs?

From Nanex:

And below are the actual 1,379,128 busted shares:

Cancelled Trades:

tc|NxTime|Symbol|Listed Exg|CorrectionType|OrgSeq|OrgCond|OrgPrice|OrgSize|


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Thu, 04/28/2011 - 20:31 | 1218570 gwar5
gwar5's picture

So many fat swollen fingers and I thought Bloomberg cut their salt off.

Thu, 04/28/2011 - 22:48 | 1219031 bigelkhorn
bigelkhorn's picture

Yes totally busted. I cant stand to watch when this morons say it was a fat finger when we know this is what is going on. 

I subscribe to the guy from australia and his FFT economic newsletter at  that guy has called many big events before they have happend, including the stock market crash in 2008 and the current financial collapse of the US. (currently happening) I found him from a friend last year, and he has some important work.

These guys are no fat finger they are also calling for 1400 in the stockmarket coming soon. 

Fri, 04/29/2011 - 00:50 | 1219294 redpill
redpill's picture

Whoever owns these fucking machines should be forced to take responsibility for their actions, and this shit would clear up in a hurry.

Fri, 04/29/2011 - 03:48 | 1219455 Bear
Bear's picture


Fri, 04/29/2011 - 04:29 | 1219481 StychoKiller
StychoKiller's picture

Now now, bots will be bots! :>D

Fri, 04/29/2011 - 06:29 | 1219572 longorshort
longorshort's picture

Guys this is a spammer on board.

Fri, 04/29/2011 - 08:14 | 1219770 DavidC
DavidC's picture

Explain please?


Thu, 04/28/2011 - 20:35 | 1218572 hambone
hambone's picture

Look at TNA - flashed just ahead of IWR to exactly $95 from moments before $93'ish...coincidence???

Thu, 04/28/2011 - 20:34 | 1218584 Cdad
Cdad's picture


It doesn't mean anything.  There is no problem.  It was an honest mistake.  Fat finger.  Get over it.  Nothing to see here.  Duncan Niederauer is a very nice man.

Ham, did your mother breast feed you?  Do you believe in aliens?  Do you eat a lot of fluoride?  

Sheesh....just baaaaallow the sheeeeple.  I hear shares of Caterpillar are historically cheap.

Thu, 04/28/2011 - 22:40 | 1218636 hambone
hambone's picture


thanks for asking and yes, my mother did cut me off from the good stuff right away (curse of being the 3rd child); I believe Mexicans and Europeans (among others) live in America; and I like the taste of toothpaste if that's what you mean? 

Thanks also for the hot stock tip...

Most importantly seems I and many other ZH'ers need to retake our civics, finance, economics, and history courses to better align w/ the new Merica we live in. 

Fri, 04/29/2011 - 00:50 | 1219291 aint no fortuna...
aint no fortunate son's picture

SRTY dropped about 15 cents on about 5000 shares dumped at 15:59:59 before they brought it back on a couple hundred shares at 16:00:00

Thu, 04/28/2011 - 20:31 | 1218574 Cdad
Cdad's picture

Is the Fed now, in perpetuating its 3rd mandate, solely focused on buying IWR (and/or other) ETFs?

Ummmm....Tyler....ummmmm....I'm a reasonable man.  I don't believe in UnicornDew powered cars, nor do I think  $12 burrito chain stores are the answer to America's inverse wealth effect.  However, I'm going out on a limb and answering YES to your question.  Wasn't it you that discovered just how ridiculous the T Bill buyers at the Fed really are?  Can we assume similar equity skills?

Thu, 04/28/2011 - 20:33 | 1218575 Cognitive Dissonance
Cognitive Dissonance's picture

Is the Fed now, in perpetuating its 3rd mandate, solely focused on buying IWR (and/or other) ETFs?

Does a bear shit in the woods........or the Fed's executive washroom?

Thu, 04/28/2011 - 20:38 | 1218594 Cdad
Cdad's picture

Speaking as a bear, I prefer the woods, brother Cog.

Thu, 04/28/2011 - 20:58 | 1218660 Cognitive Dissonance
Cognitive Dissonance's picture

Speaking from personal experience and being smarter than your average bear, that poison ivy can be a bitch. :>)

Exit stage right.

Thu, 04/28/2011 - 21:14 | 1218714 Misean
Misean's picture

"Exit stage right."

That's Snagglepuss's line.

Thu, 04/28/2011 - 21:23 | 1218739 Cognitive Dissonance
Cognitive Dissonance's picture

Yogi's right, not Snagglepuss's.



Thu, 04/28/2011 - 21:33 | 1218781 Misean
Misean's picture

Heavens to mergatroid, even!

Thu, 04/28/2011 - 21:44 | 1218813 Cognitive Dissonance
Cognitive Dissonance's picture

There is great joy in reliving our early childhood television conditioning. However that also means senility is just around the corner.

The only thing I don't look forward to is the Depends. Though seen from a posistive point of view all those fine fillies at the nursing home will assume the bulky gathering between my legs simply means old CD is happy to see them. At that point I'll need all the help I can get. :>)

Thu, 04/28/2011 - 22:33 | 1218983 RockyRacoon
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You're in rare form today.  Get a little nap did ya?

Thu, 04/28/2011 - 22:38 | 1218991 Cognitive Dissonance
Cognitive Dissonance's picture

Two hours.

And I drooled.....which means it was the good stuff. I always say you should get it while you can.

Fri, 04/29/2011 - 00:42 | 1219276 vxpatel
vxpatel's picture

sleep aid...particularily when made into infused olive oil or butter

Thu, 04/28/2011 - 20:39 | 1218610 New_Meat
New_Meat's picture

bearz b excluded from any Fed washroom, don't cha' know ;-) - Ned

Fri, 04/29/2011 - 16:47 | 1222057 dizzyfingers
dizzyfingers's picture

An idea is born.

Let's ALL poop in the Fed's executive washroom!!!

Thu, 04/28/2011 - 20:33 | 1218577 Pepe
Pepe's picture

Well, at least finally we found the smoking gun, the true WMD's

Fri, 04/29/2011 - 16:53 | 1222061 dizzyfingers
dizzyfingers's picture

Yep, and they weren't in Iraq.

Does this announcement mean that lawsuits by pension funds will follow?

That'll be fun to watch.

Thu, 04/28/2011 - 20:38 | 1218595 nevadan
nevadan's picture

Does this explain the spike in TF at the close?

Thu, 04/28/2011 - 20:38 | 1218597 disabledvet
disabledvet's picture

Chairsatan..."meet hell."

Thu, 04/28/2011 - 20:42 | 1218612 John McCloy
John McCloy's picture

Only ZH good stuff.
More nonsense to keep the sheep tamed from selling until it all comes crashing down.

Thu, 04/28/2011 - 20:42 | 1218619 buzzsaw99
buzzsaw99's picture

More busted trades. What a joke.

Thu, 04/28/2011 - 20:46 | 1218622 Blythe
Blythe's picture

Probably be a bear raid on DNDN tomorrow after Zytiga approval today.


Short interest up 22% from 3/30 to 4/15 on the stock.

Thu, 04/28/2011 - 20:46 | 1218624 GolfHatesMe
GolfHatesMe's picture

Do they send the trades through Waddel and Reed?

Thu, 04/28/2011 - 20:52 | 1218645 Beancounter
Beancounter's picture


Thu, 04/28/2011 - 21:01 | 1218669 Bartanist
Bartanist's picture

A U-tube video that if not a fake itself would show that the birth certificate is a forgery.

There are multiple possibilities:
1. The vidoe is correct and Obama knows it is a forgery
2. The video is a correct and Obama does not know it is a forgery
3. The video is a fake. I have not tried myself, but why would you believe me?
4. It is an intentional distraction by Obama or someone else to keep people from being focused on the real and important issues

The question is: if the video is correct then why would they make it such an obvious fraud? To discredit Obama? Was Trump a plant?

If you wanted to tear apart the US and create as much polarization, then is this not something you would do? Who is the real enemy here?

Thu, 04/28/2011 - 21:20 | 1218735 Demogorgon
Demogorgon's picture

The video is accurate. A co-worker downloaded the document directly from the WH website, opened it in Illustrator, and all those layers are still in the document.

Why? Your guess is as good as mine.

Thu, 04/28/2011 - 21:46 | 1218817 chubbar
chubbar's picture

It's clear that Obama's "legality" is in play.

For me it was always a question of when this card was going to be played, not "if". No rational humans first official act, upon being sworn in as president, is to seal ALL personal records from the time of their birth.

Secondly, then spend over 2 million dollars in legal fees to keep a simple long form birth certificate from the public view (and allow an officer in the US Air Force to go to prison as a result of a challenge to the presidents citizenship) if there were no problems with it.

Thirdly, if one looks at the congressional record with regard to the different bills brought forth to manage this little inconvenience, in the early stages of his run for president, it is clear that many people on both sides of the aisle are/were aware of this issue and trying to "manage" it.

Therefore, this was/is a set up. This was always meant to be revealed at the appropriate time. Probably meant as a trigger for a greater event (collapse?). All in due time it will be clear, I certainly don't know the end game.

Thu, 04/28/2011 - 22:14 | 1218918 Bear
Bear's picture

Oh, by the way, if Thump runs as a third party candidate, we have Obama for eight years.

Thu, 04/28/2011 - 22:51 | 1219036 Hephasteus
Hephasteus's picture

No. Obama can't get anything done. They are going to toss him in the trash.

Old our biggest problem is appearing to be concerned about human rights Joe Biden is going to take the shit storm reigns.

Fri, 04/29/2011 - 12:12 | 1220784 channel_zero
channel_zero's picture

That's a feature, not a bug.

Fri, 04/29/2011 - 10:10 | 1220216 Common_Cents22
Common_Cents22's picture

Yep, Ross Perot didn't like the Bush's, so he may have made a deal with Clinton.  Ross Perot 19% of the vote talkin turkey to hard workin American people gave us Clinton for 8 years.

Trump is an opportunist and could be a big spoiler.  Trump is creating leverage for himself and could make a big deal w/ either side.



Thu, 04/28/2011 - 23:54 | 1219208 SheHunter
SheHunter's picture

Does no one reveling in this BS understand that prior to anyone being OK'd to run for a high rank office in the USA that person's history is scoured by our intelligence operatives?  This is a non-issue.  If O'B was not a legal citizen this truth would have been exposed prior to his run for prez.  God damn it people.  Isn;t there anything else important with which to entertain your left and right hemispheres?

Fri, 04/29/2011 - 00:20 | 1219249 Jeffrey Lebowski
Jeffrey Lebowski's picture

Youre totally full of shit. the "Intel operatives" as you call them do nothing of the sort. Anyone or fool can run for president, if the "party" picks him up, there is NO ONE who can stop that machine from putting forth its candidate....You'd be wise to back up your claims with actual proof, otherwise get off of ZH

Thu, 04/28/2011 - 23:06 | 1219094 Abby Normal
Abby Normal's picture

I just downloaded it and opened it in Photoshop.  The copy I downloaded did not have any layers, channels or paths, so I believe this video is false unless the White House just changed this document.

Thu, 04/28/2011 - 23:29 | 1219126 Demogorgon
Demogorgon's picture

Photoshop won't reveal the layers in this type of document. You need to open it in Illustrator. It may have been created in PS, and whoever created it wasn't aware that layers that are invisible in PS are visible in Illustrator.

Fri, 04/29/2011 - 10:09 | 1220224 Common_Cents22
Common_Cents22's picture

Yep, they thought they created a flat file in PS as it appears to be.  Wrong.

Fri, 04/29/2011 - 12:08 | 1220761 unnamed enemy
unnamed enemy's picture

well i just did the same and there is only 1 layer - so theres no way to prove anything now.

Fri, 04/29/2011 - 12:19 | 1220818 channel_zero
channel_zero's picture

It's an electronic document, there's no way to prove anything anyway.

Why many of you jokers will hang onto this particular distraction remains a mystery.

Fri, 04/29/2011 - 12:16 | 1220802 channel_zero
channel_zero's picture

The video in question is junk.

OCR software exports in layers.  It's a feature.  As in text in one layer, graphics in another in a perfect case.


Photoshop layers aren't Illustrator layers.  Different engines.

Then the rocket scientist declares a very old bug in illustrator as proof that it's a forgery.

Thu, 04/28/2011 - 21:49 | 1218836 Bear
Bear's picture

Cannot find the 'pdf' anywhere ... I question the authenticity of this 

Thu, 04/28/2011 - 22:26 | 1218972 mojine
mojine's picture

Download it from the whitehouse website and open it in Adobe Illustrato­r, and marvel at the ineptitude of forgers who don't remember to flatten layers!

Thu, 04/28/2011 - 22:34 | 1218985 Conrad Murray
Conrad Murray's picture

Ineptitude...or cutting the puppet loose in order to create a chaotic situation upon which to clamp down full force?

Thu, 04/28/2011 - 22:52 | 1219042 Hephasteus
Hephasteus's picture

Never let anyone get a free pass on ineptitude when you can nail them for malice.

Thu, 04/28/2011 - 23:22 | 1219123 mojine
mojine's picture

Nice twist on Heinlein's  "Never attribute to malice that which is adequately explained by stupidity". Double reverse psychology on the "forgers" part, perhaps??? Intentional stupidity - i.e. malice ??? curious...


Fri, 04/29/2011 - 04:58 | 1219503 Hephasteus
Hephasteus's picture

Got to explain events in just the right way or else people might get the wrong impressions.

Fri, 04/29/2011 - 00:16 | 1219238 pops
pops's picture

It says his father was African. 

In 1961, weren't they referred to as "negro" or "colored?"


Fri, 04/29/2011 - 01:57 | 1219349 Howard_Beale
Howard_Beale's picture

Not if they were born in Africa and in the US on a student VISA. Negro or colored would be if they were born in the USA. Since he was a student from Africa, it was appropriate.

Fri, 04/29/2011 - 12:08 | 1220771 channel_zero
channel_zero's picture


5. The OCR software creates layers. The software used by a gov't agency will be one of maybe all three popular products.  They all create layers. 

6. The PDF export from an electronic record creates layers.

The longtime illustrator bug mentioned as damning evidence of a forgery should be enough to discredit the idiot.

In other words this entire citizenship story is junk.

Thu, 04/28/2011 - 21:02 | 1218670 Widowmaker
Widowmaker's picture

Props to the author and Nanex for offering this kind of visibility.

Thu, 04/28/2011 - 21:20 | 1218727 Misean
Misean's picture

"Is the Fed now, in perpetuating its 3rd mandate, solely focused on buying IWR"

Nah! They're buying anything that moves the market up.

Thu, 04/28/2011 - 21:31 | 1218768 chump666
chump666's picture

risk aversion is on, crossess down AUD 1.10 call...not gonna happen, that and the 1600 gld.  japan going back into recession

Thu, 04/28/2011 - 21:49 | 1218837 FischerBlack
FischerBlack's picture

Tyler, you must have hit 10K posts by now, maybe even getting close to 15K. What's the count? And how long can you keep it up?

Thu, 04/28/2011 - 21:59 | 1218862 Cognitive Dissonance
Cognitive Dissonance's picture

Don't you know that Pfizer came out with Viagra for writers several years ago?

Rumor has it that Tyler has built up such a tolerance that he's cooking it in a spoon, then mainlining it to make it through the latter part of the day. When he finally goes toes up I suspect his pen will still be mightier than the sword. 

Thu, 04/28/2011 - 22:13 | 1218902 FischerBlack
FischerBlack's picture


Truth is, zerohedge has at least one thing in common with sex. Even when it's bad, it's still pretty good.

Thu, 04/28/2011 - 22:45 | 1219025 Demogorgon
Demogorgon's picture

Pizza too.

Fri, 04/29/2011 - 03:48 | 1219457 Arkadaba
Arkadaba's picture

+ going into archives!

Thu, 04/28/2011 - 22:02 | 1218867 Silver Bug
Silver Bug's picture

The whole market has essential become a ponzi scheme, I would not be surprised at all if the fed was doing this. Actually I would be surprised, if they were not.

Thu, 04/28/2011 - 22:24 | 1218931 ebworthen
ebworthen's picture


Perhaps the routers were overwhelmed - or there was a Chinese stuxnet type routine that interrupted the trade?

With computers it is worse than boys with slingshots.

Why now, are real tangible things like food, gold, and pussy universally valued across human history?

Because you can't fake them; no bullshit allowed.

Modern computrized markets are machines that spin cotton candy, turn toffee, and cook binary fudge.


Thu, 04/28/2011 - 22:37 | 1218994 Sutton
Sutton's picture

Last call ,MIT dweebs

Thu, 04/28/2011 - 23:55 | 1219202 gwar5
gwar5's picture

"Ectomorphically Challenged Digit" 

The Obama White House announced this evening they prefer the new term "Ectomorphically Challenged Digits" instead of the old, and demeaning, term "Fat Finger."  Obama said his supporters will be using all twelve of theirs in the upcoming election in 2012 and he is proposing a ECD fund to help large digits from being singled out for ridicule and bullying, especially on Wall Street. 



Fri, 04/29/2011 - 01:15 | 1219309 Howard_Beale
Howard_Beale's picture

Tylers--you have officially entered the accelerated velocity of terminological inexactitude.

What a load of bullshit stating the possibility that it was the Fed that would fat finger one ETF for a smash up of 10%. Give me a fucking break.

Keep the monkeys swirling in conspiracy thinking--it seems to be working for you.

Perhaps not on a financial/profit level but definitely on an ego level--but Marla always said you had funding so I elect the latter.

Shame on you.


Fri, 04/29/2011 - 02:57 | 1219408 Paralympic Equity
Paralympic Equity's picture

It is not that impossible, BOJ has a 1% fall in the TOPIX index as a trigger to buy the ETF, and correct what the almost free market is doing.

There is only one way to go, and it is up, our masters are telling us that.

Fri, 04/29/2011 - 04:02 | 1219462 Bear
Bear's picture

You're right, if it were the FED they wouldn't have canceled the trades. Also all the activity was inspired by the first two trades, 500,000 each

Fri, 04/29/2011 - 04:03 | 1219466 Paralympic Equity
Paralympic Equity's picture

Not necessarily, as Tyler aksed, who has an algo that can go wild for that sum of money, without limit price, without quantity is at least strange

Fri, 04/29/2011 - 04:50 | 1219496 Rikki-Tikki-Tavi
Rikki-Tikki-Tavi's picture

Ok, it is strange but I would imagine "manipulators" going for derivatives (like the ES's for S&P500) as an ETF is expensive in terms of capital and timing-wise perhaps wait one day for the end of month print (unless it can be traced back to an UK account)?

Some trading desks will likely be more junior than normal due to the holiday calendar - might simply have been a mistake?

Fri, 04/29/2011 - 02:55 | 1219405 Paralympic Equity
Paralympic Equity's picture

Well, after seeing BOJ buying Topix ETF, the idea that the FED is doing the same would not be that surprising.

Fri, 04/29/2011 - 03:43 | 1219451 steveo
steveo's picture

Click through these charts, each has a story to tell.

The ACT Asset class summary shows a startling time period top/bottom pattern, and we are now at the channel top and the correct time.  Combine that with 6 planets lining up, a nuclear disaster, and you have --- what else ----bull run!!!! Yeah!

We will see.  The ES chart shows that even though the high was broke, it took a heck of a run just to get back up to the 50% channel line.  

Tomorrow morning might be great time to buy some lottery puts.

Fri, 04/29/2011 - 04:00 | 1219463 Arkadaba
Arkadaba's picture

Stay calm - Wills is getting married! Not sure what the coverage is like in the states but in Canada it is all over the place. I'm glad I read Enid Blyton as a kid but enough already!

Fri, 04/29/2011 - 04:03 | 1219464 Bear
Bear's picture

Who? I'm in the States

Fri, 04/29/2011 - 08:15 | 1219777 DavidC
DavidC's picture

Those guys at Nanex should be given medals. Their work following last May's debacle was brilliant and many thanks to Tyler for following them.


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