Overnight Futures 'Fat-Finger' $750mm Notional In One Minute

Tyler Durden's picture

First we saw some shenanigans in Gold and Silver this morning, followed by some very jerky moves in S&P 500 futures off the lows. Tonight while everything was gliding along quietly, someone in their infinite wisdom decided that 0005ET was the perfect time buy around 11,000 S&P 500 e-mini contracts (or around $750mm notional exposure); instantly devouring the entire stack of orders. This move was not in any way followed by any other asset class (EURJPY twitched a little at it) and as far as we can see there was/is absolutely no news to accompany the flash-smash. That is all...


The early evening Abe chatter had come and passed without event so this is unrelated to that. Surely noone left a resting buy-stop order at 1410 for 11,000 contracts?


Why not wait til Europe came in? Why not wait til the US came in? If you want buy $775mm notional exposure - wait for a pull back to VWAP? Or was it forced buybacks?



and a look at the tick-data tells the story - a totally human-looking trading pattern...NOT! looks like perfectly executed stop run...



Equity futures were alone in their exuberance...



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prains's picture

OPRAH just bought twinkies, case solved

B-rock's picture

Here's hoping they get their face ripped off.

strannick's picture

Wish for once these low-volume, not-for-profit, after-hours, market-moving futures traders would buy the gold and sell the SnP.

Funny how their fat fingers never get that backwards.

Surely everyone's in on this by now, and we are all nudging and giggling, no?

GetZeeGold's picture



Looks like I picked the wrong day to quit sniffing glue.


EnslavethechildrenforBen's picture

Fire the Fed and their interest rates, force the treasury to print the god damned paper.

French Frog's picture

It makes sense to buy if you've had advanced warning that the preliminary GDP figure out in 15 mins will be higher (than previous) or even higher than expectations.

I fear the shorts are going to get roasted again today (sigh)

DeadFred's picture

It's almost as if they wanted the contracts but didn't want the market to go up. A move like this was sure to be faded and now it has, but they still have 11000 contracts that they can sell at an opportune time. Someone's prepping to start a crash? Think if they'd sold those all at once yesterday at 10AM? And Harry Reid was the speaker not What's-His-Name? Deep currents are moving beneath the surface.

Biggvs's picture

...and about 90 minutes later we're back where we started, below 1410. I pity the poor souls who got stopped out on that nonsense!

zevon investments llc's picture

You really just need to get short and stay short.

TruthInSunshine's picture

Or not play.

Just a thought.


(or get laid, drunk-- a nice ale or porter-- you like herbage? toke up....one of the smartest guys I know can do truly advanced math I can't possibly comprehend while higher than a blimp....pick your poison/therapy/catharsis/self-medication)

There'll always be opportunities with better odds. Honestly, unless you're networked in with Kleptocracy, you're odds frankly suck at present. They don't internally call them Muppets in mocking emails (as they take their money, while pretending to "advise them in competence & ethical manner" for nothing).

zevon investments llc's picture

Thanks, I feel like I just watched an Irvine Welsh flash. I always have positions on. I'm a daytrader.

TruthInSunshine's picture

 "I'm a daytrader."

lulz, I guess you'd have to be. Try harder and go for the HFT.

A tribute to you and all:

Mixologist - Music Video [HD] - YouTube

Goodnight bitchez.,.

GetZeeGold's picture



He took his ball and went home.......can he do that?


Dude I just plugged in this morning......thanks for handing me this lump of crap.

More_sellers_than_buyers's picture

Amazing! I used to carry a big stick, and it was nice, but I always had the fear that at any minute a guy with a much bigger stick would take my head off.  Must be nice to totally control any market you want.  Hell these tool bags arent even interested in making money. They obviously just want and have total control.


1fortheroad's picture

Shorts get their face ripped off, time and time again. Why would I want that.


TruthInSunshine's picture

Like in '87? The '70s? 2000? 2008?

You a stalker, brah?

zevon investments llc's picture

This market is about to eat up some shorts.

TruthInSunshine's picture

ok. As long as you're sure. Toss a coin for some, etrade baby, tea leaves, whatever.

tetsujin's picture

or just have no stops, more profits. Ironic isn't it?

rehypothecator's picture

I felt a disturbance in the Force, like ten thousand little algos all cried out at once, and then were suddenly silenced.  

Theosebes Goodfellow's picture

More like one little algo, haywire and off the reservation.

Wait until it's owner discovers what it's been up to...

Cdad's picture

The whole session today...or yesterday, I guess...was FUBAR.  I took my S&P short off today, but based on this post, I am thinking that was a mistake.

What a total joke this market has become.  An agreement to fix the fiscal cliff....yeah...what agreement?  What is the solution for $16.3 trillion in debt?  Still waiting for the answer to that one.

prains's picture

What is the solution for $16.3 trillion in debt?


W . A.  R

Cdad's picture

Uh...we have been at war for 12 years.  Hasn't helped.  Next...

prains's picture

Uh......No you've been in oil kleptocracy for the last twelve years, the real shit hasn't hit your face yet

TruthInSunshine's picture

16.3 trillion USD debt?

How quaint.

Query: Can a sane person, knowing the actual numbers involved, truly believe this is resolvable absent total and absolute default?

Obama: 'I Plan To Get The Long-Term Deficit Under Control'

Dallas Fed President Richard Fisher calculated that the government's unfunded liability for Social Security and Medicare alone ***comes to a staggering $99.2 trillion***, or $330,000 for every man, woman, and child in the United States.


It's an impossible figure, but still on the low side compared to this estimate of $222 trillion published at Bloomberg.


The Deficit President spoke Wednesday about his plans to solve the fiscal cliff.


Key phrase is long-term.

The national debt has grown by $6 trillion since the Spender-In-Chief took office, and four more $1 trillion deficits are on the way before Obankster leaves Washington in 2016.


Check the debt clock and decide for yourself.  Is there anything, anything at all, that appears 'under control' to you? 


And guess what?  Now that Democrats have convinced Boehner and Senate Republicans to support higher taxes, Krugman, Reich and other Keynesian troglodyte thought leaders have begun to call for increased spending until the economy improves.

That's right, people.


More beneficial, well-spent, never-wasteful, federal stimulus is on the way.

Seriously, read this, immediately.


Click to read more ...



Michaelwiseguy's picture

$16.3 trillion is US Corporation debt. Not the American peoples debt.

TruthInSunshine's picture

Then that "full faith & credit" thing is even less substantive than I thought it was (and I didn't think that possible).

Michaelwiseguy's picture

This is what gets the real USA sovereign people out of paying the money on that debt;

The 16 Trillion Dollar District of Columbia Corporation Debt Is Not National Debt!

The debt of the Federal Government Of The United States Of America Corporation as Enacted is theirs and theirs alone! You Don't Have to Pay on It!

The District of Columbia Organic Act of 1871 aka “An Act to provide a Government for the District of Columbia (41st Congress, 3d Sess., ch. 62, 16 Stat. 419, enacted 1871-02-21) is an Act of Congress, which revoked the individual charters of the City of Washington, the City of Georgetown, and the County of Washington and created a new city government for the entire District of Columbia. The legislation effectively merged what had been separate municipalities within the federal territory into a single entity. It is for this reason that the city, while legally named the District of Columbia, is still commonly known as Washington, D.C. However, this act was abolished in 1874, and while the name did not change, the territorial Governor was replaced with a three-member Board of Commissioners appointed by the President. This system existed until 1974 when the District of Columbia Home Rule Act allowed for District residents to elect their own mayor.


District of Columbia Home Rule Act - As Amended Through 1997


The Stock Share Holders of the Washington D.C. Corporation are alone responsible for the 16 trillion dollar debt, made so by the Act of 1871 and subsequent Act revisions.

It also follows, The Federal Reserve Act of 1913 created a Banking Corporation with Stock Share Holders.

The accumulated debt held on the Federal Reserve Corporation's balance sheet belongs to The Stock Share Holders of the Federal Reserve Corporation, and the owners of its Member Banks, period.



District of Columbia Act of 1871 Defacto formed 1

District of Columbia Act 1871 De Facto formed 2

District of Columbia Act 1871 De Facto formed 3


GetZeeGold's picture



I've got an idea......let's borrow money from China to give to Egypt and Libya.


Beeper just went off......time for another bong hit.

GetZeeGold's picture



Hey who's screwing with my beeper again? No way that much time has expired. I'm not that high!

Debt-Is-Not-Money's picture


Thx for the post. I've read these before, and it explains much.

I guess the real question now is: what is the real legal status of the rest of the states and the sheeple?

Have you noticed that everytime a public official is talking to the sheeple, and has an "American Flag" behind him (or goes into a courtroom, etc.), the flag is fringed with gold colored braid? Is this not a flag of Admiralty, aka a flag of war? The real "peoples flag" in plain and unfringed.

It looks to me like we are an occupied country!

Hide it in plain sight, noone will notice.

Overfed's picture

If you think that is gonna' stop them from garnishing your wages (income and SSI taxes, etc.), or taking your shit via property taxes, eminent domain, and forfeiture laws, I have a nice bridge I'd like to sell.

Cdad's picture

No argument from me, brother Truth, on your numbers.  However, and for the purpose of being concrete, I choose to focus on the hard debt.  Rather than getting into an argument about future liabilities, against future growth in the economy, etc...I choose to simply ask over and over...how does one fix $16.3 trillion in hard debt?  

Of course, the answer is that you don't...not with the current crop of promise makers and kleptocrats.  John Boehner is not going to fix this issue.  President Zero has even less chance.  Unless I am missing something...those guys would have to send home half of the current roster of Federal employees...for starters...and without their pensions.  Doing this while closing entirely redundant bureaucratic entities, of course.  Who thinks they are going to do this?  On top of that, you'd have to start cutting away at entitlements...while also radically cutting the military.  Maybe then, the hard debt number could begin to reverse.

As for the future liabilities, this nation will have collapsed economically before those are due, and so you could make the case that those figures will actually turn out to be zero.

Perhaps, some of the criminal syndicate's "best and brightest" would like to chime in here, and tell us all how President Zero and the rest of the current losers in DC are suddenly going to go all Calvin Coolidge here...and explain today's ramp fest on the supposed agreement on the fiscal cliff.

TruthInSunshine's picture

To be honest, I don't even know what "hard debt" means, anymore (maybe I never did, or maybe there is no actual, definitive meaning).

What's "hard debt?" The debt that the U.S. Government claims is outstanding? What does it include and not include?

Does "hard debt" = the official, claimed, alleged national debt?

Cdad's picture

Com'mon brother Truth...you know what I am referring to.  If the US wanted to be debt free tomorrow, it is the amount it would have to pay off...instead of rolling it all over endlessly, via Ben Bernanke's checkbook...now that he has completely debauched the T bill market.

As for whether that is the true number...I have no doubt that the actual number is larger.  But let us not get lost in the maze of it all.  Again...$16.3 trillion is currently owed.  Tell me how to fix that under current circumstances.

TruthInSunshine's picture

You know I'd never get semantically tricky with you for the sake of trying to be clever. I wouldn't even do that with HarryWang of House of Urinal Cake fame.

I honestly do not know that "if the U.S. wanted to be debt free tomorrow" it could do so by "pay[ing] off" an amount equal to 16.3 trillion USD.

We (or maybe just I) take all these things as such assumed concepts & gospel like mechanics that I think few of us actually take the time to ponder the basic fundamentals as to how such presumed actions would/could work.

To push this further, in case I'm not perfectly clear, how can one be sure that payment of 16.3 trillion USD tomorrow (assuming that were possible absent an instantaneous printing of that amount of FRNs, which actually doubles that amount of debt, but I digress) retires the debt, or to whom, or for what?

Would such an act, assuming it's possible, satisfy the face value of treasury notes outstanding to holders of such instruments? Then maybe so. I think.

p.s. - But satisfying that face value of  tnotes outstanding (assuming holders of those notes will accept pre-payment of principal + interest, right?) will actually require floating an equal amount of new debt under the current system, correct? See?

Cdad's picture

Listen brother...I mostly come to ZH for bond market commentary...as I am not that guy...and then end up posting on equities...which is my bag.  However, I think I would feel comfortable suggesting that the debt would be payed back by covering the T bills, owned by various nations, banks, and individuals.  How would that happen...redemption, repo, reverse repo...and a whole bunch of insider bond shit I know very little about... I suspect.  Not that this is my actual point...how to pay it all off tomorrow.  My point is...how would the losers in DC attempt to stem the current deficit spending and halt these endless T bill auctions?  

As for how you would do that, I am presuming a sane approach...meaning that revenues would be available to cover the bonds.  If you attempt to inflate away that 16 trillion dollar deficit, as the criminal syndicate seems to think you can do, you will have a collapse of the currency, and I am presuming that this is not a desirable outcome.

I take you at face value, brother Truth.  I mean no sarc to you.  I am actually trying to simplify the argument...while you are currently "exploding" or expanding it...all the various pieces of it.  

To be clear, my point is to simply focus on that number  16 trillion.  If you do that, while also looking at the ever growing budget and budget deficit, you quickly realize that...it simply cannot be done.  You cannot pay that figure back...probably ever.  Not unless you got radical with the austerity axe to make those revenues available.

And in the meantime...and again...the current crop of folks in DC are losers, kleptomaniacs, and generally incompetent people.  We would not be in this situation were it not the case.  And...they have...four weeks.  And the stock market ramped on "moving towards an agreement."  Yeah.

TruthInSunshine's picture

I agree with pretty much everything you said, and would tell you if I didn't.

I'm just unsure of how 16.3 trillion, which is the lowest amount anyone can claim is owed (as it's per the government's official tally), gets "paid off" in anything remotely resembling a reasonable timeline, absent a de facto default (aka massive inflation and debasement of the currency that is used to repay that debt, however one wishes to describe that inflation/debasement), let alone how repayment of the much higher estimates (using alternative, higher figures as to what the actual debt equals) gets repaid absent the same inflation/debasement requirement (more thusly & robustly).

Cdad's picture

You are correct...it would not get paid off in any reasonable timeline.  However, if REVENUES were being used to pay down debt, I would presume that T bill auctions could finally halt...as in we would not need to gather in more and more debt while in the process of paying it down.

I don't think paying off debt with revenues would be inflationary.  In fact, I suspect it would have a deflationary effect...leaving less Fed dollars rolling around chasing goods, projects, what have you.  Hell, you might even get "investment" back in equity markets, as there would be less dollars chasing debt auctions, repos, and f'n "reopened 10s."  F'n bond guys...they have their own damn secret decoder ring club.

I don't think paying off debt with revenues would be dollar negative...but instead, the opposite, as dollars would be leaving the system as debt is drawn down.  



TruthInSunshine's picture

But how can revenues be used to pay down debt in the context where deficit spending and further debt monetization is the only pillar supporting the Ponzi?

There's not only no surplus revenue, there's massive net negative revenue annually, continuously, long term projected.

Similarly, if the government takes the (necessary at some point, and better sooner rather than later, but it won't happen) medicine of actually cutting the budget in real terms enough to not have to resort to massive deficit spending, the Ponzi collapses (but can be rebuilt with a more solid foundation, though this won't happen, again).

I guess there's always that possibility of returning to real GDP growth of 3.5%+ (or ideally, higher), which could stoke the underlying economy and increase tax remittance in sufficient volume to negate the need for deficits.....HAHAHAHAHAHAAAA!!!!!!!!





Cdad's picture

Indeed...in all of this, the primary ponzi scheme [the US banking system] would likely not continue to exist in its current form...which is joyous to think about.

As for growing our way out of it...I assure you, if somehow a miracle occurred, and DC sent home half its work force and closed down even half of its redundant organizations...you would see a sharp rebound in the real economy.  Of that...I am absolutely sure.  Calvin Coolidge Rocks!

I am turnin' in, brother Truth.  Catch you tomorrow for another wonderful rampapalooza.

Cdad out...

GetZeeGold's picture


Calvin Coolidge. A genius that stopped the 1920's depression dead in it's tracks.


Good for the country....bad for his legacy.

jimijon's picture

Gentlemen, gentlemen... don't you understand? As that great patriot Dick Cheney once said, "deficits don't matter!"

But, upon further reflection, I say... "They don't until they do!"

So relax. Buy some Choom penny stocks and play the prohibition trend.

Panafrican Funktron Robot's picture

Yeah, there really for real isn't a fix.  Austerity only works if you're not already past the point of no return.  That's why it's not working in Spain/Greece.  We are in the same boat, ie., bankrupt.


I know a lot of people like to focus on the headline numbers near the top, but I would like to direct everyone's attention to the bottom of the page, assets vs. liabilities.

Total assets:  $87.4 trillion

Total liabilities:  $121.7 trillion

Gap:  $34.3 trillion

That, my friends, is bankruptcy, period.

Blankenstein's picture

Krugman and Reich

Names to be remembered when those who have spent or advocated spending the country into astronical debt are being tried for treason.  

CheapBastard's picture

The traditional/historic way out of debt is to devalue the currency. Ben is expert at titrating this at 8-12% inflation per year....menaing your loss of purchasing power 8-12% per year in cash, CDs or Treasuries.