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Here's What The Machines Are Doing With GOOG Today

Tyler Durden's picture





 

We indicated yesterday, as GOOG re-opened, that the day's Volume-Weighted-Average-Price (VWAP) would be a critical level in the next day or two. The earnings SNAFU heard around the world and the sheer mania and herding going into earnings meant only one thing - the big boys will want out in a hurry (big crowds and small doors). And so the onslaught of talking heads appeared to play down this 'aberration', to talk up the future, and explain why everyone should BTFD. The machines, however, told a different story. From the moment we reopened, GOOG was tickled higher by market-maker algos desperate to allow their institutional order-flow out at anything like a VWAP level (the level that their bonuses are judged on and commissions paid from). Sure enough, by the open of the day-session today, we had reached yesterday's closing VWAP and a flood of large block size sell orders hit the market. Watching VWAP today will be key - that's what the machines will be doing as they revert every dip to dump at this mystical level.

 

 


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Fri, 10/19/2012 - 10:04 | Link to Comment LawsofPhysics
LawsofPhysics's picture

Skynet bringing GOOG back "on target" - expected.  Seriously, how long before all selling is made illegal.  What a joke this "market" is.

Fri, 10/19/2012 - 10:06 | Link to Comment Spastica Rex
Spastica Rex's picture

The willing suspension of disbelief is the strongest instinctual drive of Homo-Retardimus.

Fri, 10/19/2012 - 10:09 | Link to Comment GetZeeGold
GetZeeGold's picture

 

 

Paging John Connor....please pick up the white courtesy phone.

Fri, 10/19/2012 - 10:15 | Link to Comment prains
prains's picture

please pick up the white courtesy phone.

 

Hi, this is Lance Armstrong, How may I help you?

Fri, 10/19/2012 - 10:20 | Link to Comment redpill
redpill's picture

The original sell action of GOOG was at first thought to be a spontaneous escalation of a protest against an earnings report which insulted the prophet Larry Page.  Only now are able to correctly assess this for what it was, a coordinated domestic terrorist attack by stock sellers.  No acts of terror will ever shake the resolve of this fixed market, alter that morally bankrupt character, or eclipse the debauchery of the values of cronyism that we stand for.

Fri, 10/19/2012 - 10:25 | Link to Comment malikai
malikai's picture

The algo code has been leaked:

 

if ( price < vwap ) { buy; }

if ( price >= vwap ) { sell; }

Genius..

Fri, 10/19/2012 - 10:22 | Link to Comment haskelslocal
haskelslocal's picture

Yes Lance, do you know the elasticity of this yellow wristband I'm wearing?  I'd like to shoot it across the room at Maria Bartalomo.

Fri, 10/19/2012 - 10:42 | Link to Comment conspicio
conspicio's picture

Hey Lance:

Levi says your one gonad gives you mystical unicorn powers. Chery Crow says no. Kristin slamed the phone down. Guess she thinks we're from Fabiani's office again. Everytime I search EPO on google it comes up with your pic. And we want to know why you "misled" Nike? They've never fired a doper, so whatever you did to mislead them must be serious. You have crabs or sumpthing? Cause we haven't seen someone dropped like that since that one chick in HS who suddenly said she had crabs. My cyclocross buddies alll think you got hooked on EPO with your cancer treatment. We left a nice package at the Aspen house. Kindof a fiscal cliff survival package. Well, actually it is a six pack of Bud light, since we know you can't get that for free anymore. Oh, and some extra scratched Oakley lenses. Cause the future is so bright. BTW, I call dibs on the Gulfstream. Can I keep the N7LA tail number? But we're repainting to a new color we call hemocrit red. Fuckin A, George Hincapie and I are gonna find that machine and piss on the landing gear. OK TTFN, bitchez.

 

Fri, 10/19/2012 - 10:45 | Link to Comment fuu
fuu's picture

izzatapirat?!?

Fri, 10/19/2012 - 11:50 | Link to Comment prains
prains's picture

Actually my name is Flance and I just like to dress up in tight tight shorts

Fri, 10/19/2012 - 10:19 | Link to Comment haskelslocal
haskelslocal's picture

 "The willing suspension of disbelief is the strongest instincual drive of Homo-Reardimus."

Beautiful.

Fri, 10/19/2012 - 10:12 | Link to Comment JPM Hater001
JPM Hater001's picture

I hope Skynet sends the hot blonde back first.  She was much much more funto party with.

Fri, 11/09/2012 - 18:13 | Link to Comment nahshal
nahshal's picture

Yes yes really Cherry picker hire Lance does one apprehend the snap of this yellow wristband i am wearing? i would wish to shoot it across the space at Maria Bartalomo.

Fri, 10/19/2012 - 10:04 | Link to Comment fonzannoon
fonzannoon's picture

Green by close. All of it. Rigged.

Fri, 10/19/2012 - 10:13 | Link to Comment CPL
CPL's picture

Everyone let it go as high as they want it.

 

Let them get painted into the corner liquidity trap.

 

500 companies enter, one company leaves!

Fri, 10/19/2012 - 10:14 | Link to Comment JPM Hater001
JPM Hater001's picture

Slaughterer is into me for 2 OZ of silver in this game.  I'll take this bet -1 oz silver I say it finishes Red as all get out.  Just let me know...

Fri, 10/19/2012 - 10:24 | Link to Comment hedgeless_horseman
hedgeless_horseman's picture

 

 

Like I keep saying, Hedgies are checking out of the PCLN hotel.

Keep staring at those fat margin prints, but don't blink...

Fri, 10/19/2012 - 10:07 | Link to Comment insanelysane
insanelysane's picture

How much is Goldman paying Bloomberg tv to run segment after segment bashing Greg Smith.  Is it really that big of a story?  The economy is falling apart and Bloomberg leads every hour with another story on Greg Smith being a disgruntled employee and that Goldman is just muppet lovers.

 

We're people persons dammit!

Fri, 10/19/2012 - 10:12 | Link to Comment Quinvarius
Quinvarius's picture

I am looking forward to read this guy's book.  It must be good if Goldman is freaking out this badly.

Fri, 10/19/2012 - 10:42 | Link to Comment insanelysane
insanelysane's picture

a 40 minute segment to tell viewers that what the guy wrote is completely false.  couldn't you do that with a one line statement and if it isn't true can't they sue him for slander?  no lawsuit, thought so

Fri, 10/19/2012 - 10:07 | Link to Comment becky quick and...
becky quick and her beautiful mouth's picture

emp blast, now.

Fri, 10/19/2012 - 10:12 | Link to Comment yogibear
yogibear's picture

LOL, bots trading against bots. Eventually another bot blows up a big account somewhere. Eventually the bots dual to the end. 

Maybe a whole series of derivatives chains blow up. 

 

Fri, 10/19/2012 - 10:13 | Link to Comment BLOTTO
BLOTTO's picture

Their are no winners in...

.

Tic,

Tac,

Toe.

.

xox

Fri, 10/19/2012 - 10:15 | Link to Comment virgilcaine
virgilcaine's picture

what would happen if the HFT fiber optic line was ever cut? It runs from NJ to Chi. I believe.

Fri, 10/19/2012 - 10:18 | Link to Comment inevitablecollapse
inevitablecollapse's picture

paging virgilcaine - DHS on line one...surely there are backups and backups of backups...right???

Fri, 10/19/2012 - 10:21 | Link to Comment Urban Redneck
Urban Redneck's picture

Skynet moves from fiber optic to microwave, no cable to cut...

Fri, 10/19/2012 - 10:32 | Link to Comment CPL
CPL's picture

It would reroute to one of the sub CO's in about 5 nano seconds.

 

It's the internet, it's built to take a nuke strike.  Blow pieces off of it and like terminator it don't care a lick.  You would need a power outage with a line cut.

Fri, 10/19/2012 - 10:16 | Link to Comment Village Smithy
Village Smithy's picture

I'm not sure that "tickled higher" is the phrase I'd use. More like "ramped higher by colluding HFT shops".

Fri, 10/19/2012 - 10:16 | Link to Comment Waterfallsparkles
Waterfallsparkles's picture

I have found that most stocks trade close to flatline for 10 days after earnings.  To make sure that any Margin Calls are realized.

Fri, 10/19/2012 - 10:30 | Link to Comment jimijon
jimijon's picture

Thanks for the acronym definition VWAP though a nice ZH'r filled me in earlier.

Great community.

Fri, 10/19/2012 - 10:36 | Link to Comment MilleniumJane
MilleniumJane's picture

Anything about this remind you of the classic chart from Masters and Johnson regarding the female orgasm? Excitement, Plateau, Orgasm.

All vibrators set to warp speed, Cap'n!!!

Fri, 10/19/2012 - 10:41 | Link to Comment Downtoolong
Downtoolong's picture

If trading algos were human beings the would behave something like this:

 

Come here, take a look at what’s down at the bottom of this cliff.

 

(Kick from behind as he lifts your wallet) It’s been nice knowing you buddy.

 

 

Fri, 10/19/2012 - 10:45 | Link to Comment Jim in MN
Jim in MN's picture

 

 

STFU

 

Sell

The

Fucking

Uptick

Fri, 10/19/2012 - 11:08 | Link to Comment AldoHux_IV
AldoHux_IV's picture

Is this punishment for GOOG not abiding by the NWO's central planning ways? Like a former gang member, there is only blood in and blood out?

Fri, 10/19/2012 - 11:15 | Link to Comment Lost Wages
Lost Wages's picture

You think they're going to replace Big Brother GOOG with another corporation this late in the game?

Fri, 10/19/2012 - 11:27 | Link to Comment Jim in MN
Jim in MN's picture

More like crash it to expel the traitorous leaders and replace with Goldmanite scum.

Fri, 10/19/2012 - 11:30 | Link to Comment Threeggg
Threeggg's picture

Now that it was proven yesterday that printers have feelings, emotions and anxiety; they dont need charts anymore. It is now known that the charts need the printers. Printers are like whores, they never say no.

What a relationship ! 

Fri, 10/19/2012 - 21:41 | Link to Comment StychoKiller
StychoKiller's picture

From a previous post:

Son, we live in a world that has printers, and those printers have to be guarded by men with guns.  Who's gonna do it? You?  Lloyd Blankfein?  I have a greater responsibility than you could possibly fathom.  You weep for Santiago, and you curse the Banksters.
You have that luxury.  You have the luxury of not knowing what I know.  That Santiago's death, while tragic, probably saved lives.  And my existence, while grotesque and incomprehensible to you, saves lives. You don't want the truth because deep down in places you don't talk about at parties, you want me on that printer, you need me on that printer.  We use words like interest, easing, bubble.  We use these words as the backbone of a life spent debasing something. You use them as a punchline.  I have neither the time nor the inclination to explain myself to a man who rises and sleeps under the waves of the very liquidity that I provide, and then questions the manner in which I provide it.  I would rather you just said thank you, and went on your way, Otherwise, I suggest you pick up an ink cartridge, and man a printer.  Either way, I don't give a damn what you think you are entitled to.

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