After Hours

Tyler Durden's picture

Presenting The Reason For The Thanksgiving After Hours Melt Down: Another Electronic "Glitch"





As readers will recall, just after the abbreviated Thanksgiving session, there were some pretty dramatic afterhours fireworks, both in stocks, and in a variety of volatility indices, that of gold (^GVZ)most notably. As the charts below capture, the drop in the futures had offset basically the entire day's upside in the span of milliseconds, leaving many wondering just what had caused this. Luckily, courtesy of the Tabb Group's Paul Rowady we now know that this was yet another glitch borne out of the hyper-technological sophistication of the current marketplace, in which the smallest error can and will propagate through the system uncontrolled resulting in major losses for those who are aligned on the same side as the ponzi. In other words: it was yet another flash crash which luckily did not have a major impact as virtually no volume was being transacted in the market. All this merely means that Ben Bernanke, who is doing everything in his power to boost asset values, has increasingly more variables working against him as the system continues being pushed ever further away from its natural equilibrium, until one day it all just burns down.

 
Tyler Durden's picture

Surge Of Inexplicable After Hours Selling Takes Gold Volatility Index To All Time Low





In addition to the rout in the ES, VIX and GC which we pointed out earlier, there were some additional fireworks behind the scenes in today's after hours session. The CBOE Gold Volatility Index, the ^GVZ plunged by the most in over a year, as the index hit an all time low of 15.92 without the underlying making much of a notable move. The most curious aspect of the trade was that the entire dump occured in the AH session. Many were left scratching their heads over what caused this monstrous unwind in long vol positions: was this the unwind of a massive long ES/short GC arb? We don't know, although if rumors that a major fund is planning to stand for delivery of Dec gold turn out to be true, then obviously someone got confirmation today. Keep a close eye out on the GVZ. Should this price level persist on Monday, then the front futures contract will likely surge.

 
Tyler Durden's picture

Last Minute After Hours Dump Leaves Investors On Edge Ahead Of "Dual POMO Bail Out Monday"





Earlier we pointed out that today was trending to be one of the lowest volume days in history. A volume surge accompanying a panic dump into the close managed to pull the daily volume just barely higher than last Xmas eve (though still about 60% of last Black Friday). What is more relevant is that just after the market closed, the bottom fell out. ES closed at the lows of the day (contrary to amusing flashing and epilepsy-inducing CNBC "breaking news" propaganda stating just how much better compared to the day's low the S&P was trading at EOD) as the entire world woke up just after 1 pm realizing that Monday has that very deja vu-ish September 15, 2008 aftertaste. Not surprisingly, VIX exploded to the week's highs, well past the Korean war threats, and a 14% move in one day. And, yes, that old backstop gold, pulled a VIX. What is most relevant, is that something big is happening just behind the scenes: ZB volume explodes to 608K, while the CME Ultra Treasury volume of 349K surpasses the prior record of 237k. Monday may just be a very interesting day as faith in the bailout machinery no longer works, and the Fed's two POMOs will mark the point where Brian Sack officially jumps the shark.

 
Tyler Durden's picture

After Hours Earnings Summary: Amazon, American Express And Sandisk





All three companies beat, yet Amazon not liking the news (down 4% AH), and now AXP going red. Of course, this being one of the most roboticized stocks, looks for the HFT crew to throw in some extra volumechurn in exchange for capital losses offset by liquidity rebates to bring the price back.

 
Reggie Middleton's picture

BoomBustBlog Research Hits Another One Out the Park! Google up nearly 10% after hours, true blowout earnings unlike JPM





Google's earnings surprised everyone except BoomBustBlog readers and subscribers - and this is most likely just the beginning.

 
Tyler Durden's picture

Green Mountain Roasted: 8-K Footnote Sends Stock Down 15% After Hours





For all those engaged in a repeat of the world's most ridiculous dash for trash, what just happened to GMCR may be a stark reminder that easy come may just as well mean easy go. The stock, which earlier closed at a fresh all time high, has plunged in the AH session after deep in the bowels of an 8-K just released, the firm disclosed the following stunner:

On September 20, 2010, the staff of the SEC’s Division of Enforcement informed the Company that it was conducting an inquiry and made a request for a voluntary production of documents and information. Based on the request, the Company believes the focus of the inquiry concerns certain revenue recognition practices and the Company’s relationship with one of its fulfillment vendors. The Company, at the direction of the audit committee of the Company’s board of directors, is cooperating fully with the SEC staff’s inquiry.

 
Tyler Durden's picture

Cisco Plunges, Futures Drop Below Day's Lows After Hours





Cisco misses and stock drops 5%. In the meantime, futures are now plumbing the day's lows after hours. And the most troubling development from CSCO, worse than the top line miss, is the catch courtesy of Bloomberg's Adam Johnson that Days Sales Outstanding surge from 27 to 41 days. Customers incrasingly refuse to pay on time. We wonder how that will be spun favorably.

 
Tyler Durden's picture

A Three-Month Flat Market? Yes...If You Exclude The Constant After Hours Manipulation





Anyone looking at their 401(k) portfolio performance since the end of August will undoubtedly be very happy (and extremely surprised), as the market has climbed steadily higher despite i) increasingly declining trading volume and ii)consistent and material withdrawals from domestic equity mutual funds. Furthermore, if anyone was merely looking at the trading action in regular hours, one would think there was absolutely no profit made since early September. The reason for that: all the upside since September 14th has come exclusively from after hours action. The chart below demonstrates the relative performance of regular hour trading in the SPY as well as that in the extended session. The notable observations: gaps, gaps, gaps. Every single day, minimal volume pushes the futures index higher. Good news, bad news, it don't matter to the Goldman S&P and Russell 1000 futures desk: they just lift every micro offer, giving the impression that the market is unstoppable, often leapfrogging each other as the latest viagra'ed GDP or unemployment rumor is spread. Come morning, it is time for the HFT brigade to come in and scalp their trillions of pennies while leaving the market unchanged, then at 4pm handing it off again to leveraged futures manipulation and dark pools. In a nutshell, this is the secret of the past quarter's phenomenal market performance.

 
Tyler Durden's picture

Did Someone Turn The SPARCs Off After Hours?





Big drop in SPY AH to below VWAP. Big blocks pushing lower. What is one missing here?

 
Tyler Durden's picture

Trading Is Now Exclusively An After Hours Affair





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.

 
Tyler Durden's picture

After Hours Is The New 3:30 PM Volume Spike





No volume all day? No problem - luckily there is after hours to trade. The entire cumulative volume below average caught up to the normal in less than 30 minutes of AH trading. And guess what - all the volume to the downside. But no big surprise there.

 
Tyler Durden's picture

SPY After Hours Deja Vu





In a replay of yesterday, Morgan Stanley advertised 30 million SPY shares traded at 6:42 pm. Curiously UBS also posted a significant accumulation block, larger than yesterday's, and indicative of some serious Prime Broker activity.

 
Tyler Durden's picture

SPY After Hours Deja Vu





In a replay of yesterday, Morgan Stanley advertised 30 million SPY shares traded at 6:42 pm. Curiously UBS also posted a significant accumulation block, larger than yesterday's, and indicative of some serious Prime Broker activity.

 
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