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The Yen Did It?
As of this writing none of the big trading houses has fessed up to
adding a zero on an e-mini electronic order. We shall see. I think it
was connected to a move in the Dollar/Yen. When that break occurred it
triggered some algo machine to sell. And that happened when the NYSE had
a halt.
It was computers that are behind it. Mary Shapiro at
the SEC has been very reluctant to tackle this issue. Not any more. Look
for her to make a statement shortly. The axe is going to fall on an
important part of how the markets function.
Either way some damage was done. This is a picture of one stock that
traded 3450 shares at .01 cent or $34.50. It was worth more than$140,000
at the close. The trade above for 7,254 shares at 41 cents resulted in a
paper gain to someone of $300,000. These will be reversed. What a
system.....
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MAY 1st :
"The weekly DOW chart shows an expanding wedge indicating a significant move is probable. This remains an overbought bear market rally and the uptrend could falter at any time"
http://www.zerohedge.com/forum/latest-market-outlook-0#comment-326767
Option Monster says there were rumors of a hedge fund liquidating.
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http://www.optionmonster.com/news/article.jsp?page=commentary/in_the_new...
The rumors have been out there all week, about a hedge fund or funds being liquidated, and that certainly could be true. Today's move, particularly in the last hour, makes it feel as though that could indeed be happening.
Someone pulled the trigger on closing a big player yesterday two hours into the bell, and the market then settled down in the final hour. Today they've matched that pattern exactly, but I doubt we will see much calming by the close.
...
"Yen strength" isn't because the yen is fundamentally strong, it's the liquidity result of carry trades unwinding. Don't know how far it has to go, but wouldn't be surprised to see 95 ¥
You are THE MAN bruce. They have to carry trade the yen to run the quants. Check nikei if it ever crashes and recovers like this. I think you'll find something weird with the dollar there.
@itiswhatitis
I had a real similar experience today, feel like I wuz robbed. I had been completely out of the market since 1983 then found Zero Hedge in late February and hence began my (ongoing) education. So, on 4/16/2010, I purchased (thru Schwab) 500 shares of ETF PROSHARES ULTRASHORT RUSSELL 2000 (SJH), @$19.05, with a stop @ $17.00. (I mentioned the trade in a short ZH post Sat, 04/17/2010 - 08:46 #305732).
Me and the wife (both retired) were closely watching the market today and our lone position, WOOO-HOOOOING as the market plunged and our 2X SJH was steadily climbing. Suddenly the Dow took the -1000 plunge. Concurrently, Schwab's site went down (and ZH's). When it finally came back up about ten minutes before the close, I checked the SJH position and we found out we had been STOPPED OUT because what had been a .02¢ - .05¢ Bid/Ask spread all day, had suddenly (while the Schwab site was down) increased to a $4.88 spread (16.79 - 21.60). First, because of the $17.00 stop, 100 of the SJH shares got sold at $21.50 (3:43pm EST), then 400 more shares got sold at $19.56 two minutes later (3:45pm EST). So, instead of being up and still holding a winning $2000+ profit position, we ended up getting closed out with a profit of $200+. Does all this sound legitimate to the more experienced traders here at ZH? Maybe we should really feel lucky we got anything back at all. Haruuumph. Feel like the greenhorns we are.
I have long ago (early '09) come to realize that I have WAAAY too much to learn about the markets b4 using the info here for direct specific purchases -- these posts are like signposts to further reading for us, direct indicators ONLY if they confirm a trading position you are already comfortable with and researched from independent angles & sources. DYODD (gotta do your own due diligence). Of course this comes from 20/20 hindsight of doing much the same as you a few times.
1) One of the fringe benefits/points of today's action was EXACTLY to rape the stops on the way down and up (besides the primary objectives - one of them perhaps that of waving a very large, hairy nuke in the face of any who might oppose the will of the banksters)
2) One useful piece of advice repeated with ever increasing frequency and weight by many much more experienced than I: Do NOT trade. Period. Buy physical precious metals as wealth preservation.
3) If you feel bold/lucky/cash-rich to trade, do not do so with leveraged ETFs.
4) If you still insist, try a better platform --- Thinkorswim seemed to be up the whole time, though I only use it to monitor, not trade.
Or, just do a straight buy instead of an option.
Yen Carry Trade = off today
I had a stop in on AAPL at $210 and it executed at 2:48PM and sold at $231!!
WTF....Stock didn't fall 60% so I'm guessing it won't be reversed... HFT must be banned now!
Bank of Japan injecting 2Trillion Yen into the money markets. The YEN did it. Sounds like a hedge fund got liquidated or margin called.
Market turned around after Bernie Sanders watered down his audit the FED bill. Now it is feckless. Ron Paul opposes the new language. Market was scared that the world would see the wizard and all its corrupton and lies.
Sad day for America Bernie. We were behind you left and the right. You sold us out.
Any time you find out Senator Chris Dodd is in support of something - watch out.
According to our sources on the Hill, Senator Bernie Sanders caved to pressure from the White House and Chris Dodd and stripped out the Paul-Grayson language from his Fed transparency amendment.
What Sanders is now proposing is essentially the Watt amendment we all opposed last year in the House. In addition, it supports just a one-time audit.
Talking Points Memo reports that, "In order to allay some of the White House's and the Fed's concerns, Sanders has agreed to limit the scope of what the Government Accountability Office would be allowed to audit--but his plan will still require thorough review of all the Fed's emergency lending, beginning December 1, 2007."
Call Senator Sanders' office at (202) 224-5141 and tell him how you feel about this last-minute sell out.
http://preview.bloomberg.com/news/2010-05-06/sanders-narrows-scope-of-bank-bill-s-fed-audit-to-a-review-of-crisis-loans.htmlGubbmint Cheese, I don't think there is an answer to that. I guarantee you that people sold once they saw that spike down and back up again. And to make things more complicated, you can bet your bottom dollar that the frontrunners made a killing on this "error". I don't think this was an accident, I can't believe that a zero to make it a billion or a b instead of an m was possible. If thats the case it would happen all the time, people aren't perfect thats why the system has safeguards to stop or check on orders that go out of the limits that you or your investment house have set up. I mean it's real easy to transpose numbers and letters, it happens all the time. Just look at the comments section on this or any site, there's always mistakes.
Something is happening behind the scenes that almost looks like a get your money while you can action.
I agree - seems unlikely that this was an accident - does it follow then that china's 4% drubbing was an accidental fat finger as well?
something doesn't pass the smell test
Can I please have my trades reversed ?. I'd like a do-over on a BGU/BGZ trade today.
lol
Yen strenth? wasnt expecting that
so you bought a pile of shares at $0.41.. and then things reset themselves. I think its safe to say some people would have sold these pennies from heaven before the market closed. So Bruce - How do you then reverse this trade? Do you just go in and tell the person.. "yeah.. that $300k isn't yours so we will take it thanks.."
yeow.
No, you'd be short from wherever you sold it. You'd have to buy the shares back tomorrow.
I couldn't get on site all afternoon...maybe there is an ETF for volume on ZH...probably redundant to the VIX
Where is Tyler? Black-bagged and sent to Gitmo at 2:48 Eastern?
Was wondering the same.
The banksters say, you no can look at our books, we do this if you try..
This is a scandal boys. Please lets try to get to the bottom of it.
Oh, come on!!!!
It's rather obvious to all....the sudden inflow of capital into the bond market paniced the stock market boys.....
Nothing to see here, please move on....
And will it be surprising to see an overnight massive bounce in futures on a couple of dollars worth?
I think we see a bounce in the morning then downhill before the weekend.
And coming to a hospital crash team near you... all the HFTraders who thought they had the system sorted.... until they didn't
Bruce this is what I thought, although I was not as astute. I thought currentsea manipulation via doelarr. Man I love this site! Thanks for you work Bruce!
induce volatilty
collect margin calls
???
PROFIT!
I heard apple printed below 200 I wonder if harry wanger got stopped out. just curious.
What's Phase II?