NYSE Volume: Is This Some Joke...?

Tyler Durden's picture

Earlier we noted the dismal volume in the markets today, it turns out we under-estimated just how dismal... Today was the lowest Monday-after-Thanksgiving Day NYSE volume since 1996! We suspect you will not hear that 'fact' on your favorite business media channel when they crow of the 'well off the lows' performance today...





(h/t @Not_Jim_Cramer)

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Aurora Ex Machina's picture

The Prisoner is not a parody.


It's an allegory.


Wise up.

nmewn's picture

What happened to the Squidity?...lol.

orangegeek's picture

It's kinda fun to "find waldo" amongst the charts - waldo being the algos that run things irrespective of performance outlook.




Volume was down today as compared to the last two weeks - nonetheless we are likely headed up higher - as ridiculous at this sounds and based on rubbish future potential.  Go waldo.

Bansters-in-my- feces's picture

***Watch your ass on gold or get ready to buy,but golds on special deals right now.

Kitcos gold lease rate just went to negative -0.45% for one year lease and the 6 month.

When this happens gold gets nailed all the time,cause the bankers get paid to lease the central banks gold,and then it gets sold to keep prices down.

The Central banks get to keep the same leased out gold on thier books too,even though the bullion banks sell it outright.

Fucking ponzi

Bansters-in-my- feces's picture

All months on silver lease rates just went to 0.00%

All gold lease rate months just went negative big time....

Something cooking....

Watch out.....***

Orly's picture

Sounds like a giant "risk-off" cascade is a-comin'.

ekm's picture

I was just told by a wise person that I was having "press fatigue".


That's what's happening.

fonzannoon's picture

What is press fatigue? EKM you see that HFT vid I sent last week? Pretty cool eh?

I think you have a very interesting viewpoint with liquidity and the fed buying everything. I think about it often and I struggle with it. FWIW what I find interesting about you is you seem surprised by the whole orwellian aspect of what is going on. My guess is that having lived through it, you have a very hard time considering that you could wind up in the same quicksand again. I don't blame you for that. I hope we avoid it.

ekm's picture

He described "press fatigue" as resigning to the news and accepting them, hence consuming the news, not challenging the news. He said that that's what the newsmakers actually want, they we consume the news, not challenge them. It's like marketing of products.

The video was too, too cool.


My ideas came from Flow vs Stock articles on ZH. There's always a limit to anything, inlcuding buying of securities. It never collapses gradullay. It always pops.


I've always said that: Slavery is a choice. Seeing the boom in gun sales, I don't think americans would like to become slaves, at least the  50% of them.

fonzannoon's picture

Good stuff ekm. agreed about the guns. i agree with doc engali though when he wondered who they would point them at when things got bad.

ekm's picture

I'd see it differently. They are a deterent to avoid that things get bad.

Let me give an example.

Question: Why do we lock the doors?

Normal Answer: So thieves do not steel (wrong answer).


Correct Answer: We lock the doors so HONEST PEOPLE do not get tempted to steal. Thieves will always steel if they wanted. A lock on the door won't prevent them from stealing.

That's what the guns are, a lock on the door.

Orly's picture

"We lock the doors so HONEST PEOPLE do not get tempted to steal."

And it is why Muslim women must wear burkhas, so honest men won't be tempted to rape them?

Are you feeling okay?

ekm's picture

It's not the same, come on.

Orly's picture

You never need a deterrent to prevent honest people from doing crimes.  But since I have discovered that you're Russian, I can see the connection.

Dostoyevsky had much to say on this topic.


ekm's picture

Not Russian, but Dostoyevsky is great.

Orly's picture

Like Tolstoy, he tended to drone on and on and on.  Very dull.

ekm's picture

Oh, I get the point.

DavyRoySixPack's picture

I enjoyed "War and Peace" - of course I was stuck seomplace for a month with nothing else to do. Tolstoy stretched me .. a man who ate nothing but Kimis "fermented goat milk" .... left all of his money to his family before he died ..... and lived the life of a simpelton

ekm's picture

I have a theoretical case.

DOW has 30 stocks, I'd say an average of 70 billion each capitalization. Hence all Dow let's assume is 25 trillion dollars. Let's assume that 15 trillion were already owned. Hence again assumption, 10 trillion dollars of shares were floating.

The Fed has printed ....6 trillion so far? 10 trillion? How much is in "reserve"?


But... how is money created by the Fed? Answer: By buying, only by buying. If there's nothing to buy, the Fed cannot create money.

In theory, Fed + Primary dealers can "acquire" the whole DOW.......which is wait.......probably true or getting pretty close to being true.


Only God can create infinite things, human can't.

Orly's picture

It may be that you're seriously over-thinking this thing, hoss.


ekm's picture


But, it's happening. I only envisoned an ideal theoretical case.

And it practically is happening in Russia.

Orly's picture

Oh, you're Russian?  That's lovely.  Where from?

ekm's picture

No, no.

From Albania.

I am very curious. Read a lot and talk to a lot of people.

Orly's picture

Oh, I see.  Not Russian.  I meant no offence.  :D

Anyway, the purpose of the US central bank creating credits is to give to our failed banks who can then buy whtever they want with it.  It is not an infinite amount of money, so saying that the Federal Reserve is being like God is not accurate.

The Dow Jones Industrial Average is a weighted index of 30 stocks.  Being weighted means that the numbers are skewed and can be made to look like whatever they want it to look like.  A far better measure of US equity performance is the SPX, or the Standard and Poors 500 Index.  It has 500 stocks in it, so it is far more accurate than the Dow30.


ekm's picture

That's what I meant actually. It's not infinite.

It's limited by the assets available to buy.

I think there is little volume because not much is available for trading. Most of the stock is devoured by flow and rests in inventory.


In communism, the gov had practically purchased everything. There is zero trading. I mentioned Russia, because Putin is buying up everything again, it seems to me.

Orly's picture

But as far as I know, our central banks haven't bought stocks directly.  They are having the giant banks do it by proxy.  So there are plenty of shares available to trade in our markets but it takes two sides to make a trade: a bid and an ask.

Their shares are posted on the "ask" side of the equation but no one is taking the "bid" part of it.  There are two reasons for this, I think...

First, most retail traders, who used to trade stocks during the day, are mostly all gone because no one trusts these markets.  The other part of that equation, too, is the people who had their money in 401k plans- like a pension fund- have taken their money out and put it into bonds, so there isn't that much money to trade on the bid side.

Second, everyone is waiting for the other shoe to drop, which means that we all know that something bad is about to happen and we do not want to be the last ones holding the bag when everyone runs for the door.  This should happen very soon, by the way, because the charts of SPX look almost exactly like they did just before the tumble in 2008.  No one wants to bid on stocks now because, even if the price goes a little higher, it can go a lot lower a lot faster.

The downside risk out-weighs the upside reward here.  So everyone is just waiting.

ekm's picture

I actually see Fed + Primary Dealers as one entity.


I do not think though that any of the money from pension funds is ever coming back since those guys have already lost a lot and are retiring or about to retire. They are all scared that the least productive part of their lives will outlive the money.

The younger generation has no money, hence I do not think that any significant bid can come from retail.

So, my conclusion: Nobody's waiting, hence that's the problem, there is no bid.

Orly's picture

Well, either way, the markets rely on momentum to operate.  They are always looking for the greater fool to buy something they know is so high already.

With momentum stalled, there is only the other direction to go.  Down.  We are all waiting to see if this happens.

Do you trade stocks or something else?

ekm's picture

I traded a lot and lost a lot. When I slowed down to find out why I lost, that's how all started, in 2008.

Then I made a lot, then I lost a lot and then I made a lot and then I slowed down again.

Tried options and got killed. Have had a lot of success with HOD on TSX.

Orly's picture

Options.  Yes, that's how I got killed the first time, too.  In 2006, which was actually the beginning of the Fed taking over the markets because I would play put options on SPY but the thing never went down.  All year, it never went down.

That's when I knew something was off.

Anyway, now I trade in the foreign exchange.  It is very challenging and fun.  Still treading water and not making much, as can be expected because the Feds are all over the markets, even in Europe.  But I'm doing okay.

Maybe you should try that.  Just go with a reputable broker and stay out of the brokers in Cyprus.  Stay out of Cyprus.  See if there is IBFX available to you.  They are the fairest and the best, I think.


DavyRoySixPack's picture

Yes, and so markets will always go up with this ... "price inflation of equities" no matter the returns ....

ekm's picture

Not necessarily agree. Who's going to buy?

realtick's picture

That looks like AAPL's quarterly EPS chart.

DowTheorist's picture

Volume shows the way the real economy is going: backwards.

When a country grows, so grows the money devoted to investing/speculation and, with it, volume.

When, on the margin, the tide subsides and the economy shrinks, there is less money for the stock market.

The bad thing for traders is that the universe of stocks suitable for trading is drying up. Less and less stocks show a decent volume to be good short-term trading instruments. Slippage for modest volume (i.e. 1000 shares) is on the rise.

Non Passaran's picture

I didn't look at volumes while the market was open, but I did notice that bid for one (what used to be a fairly liquid) stock visibly dropped just 1-2 seconds after I bought a block and was surprised to see the HFT freak show in action there and then.
Shit, if this trend continues my short positions will keep sinking together with my long positions.

SheepleRUs's picture

So HFT's take vacation too???  I thought they brought liquidity to the market??  What a joke.

Ben Dover's picture

When looking at campaign donations, comparing 2008 to 2012, Obama had a lot of investment banking support in 08. Pretty much all of that switched to Romney. Obama's slack was at least partially taken up by tech like google. Is this a sign that bank/investment folk are pulling their money out anticipating a per trade tax or are they gearing up for the collapse of the stock market and moving their collective cash into the next great scam?