Futures Flash Crash As ES Plummets To Limit Down

Tyler Durden's picture




 

No, really, there is a big, huge, massive rotation out of those dangerous, inflationary bonds into safe, predictable equities...

 

Depth of market, or lack thereof, chart from Nanex.

 

And, the VWAP strange attractor those GETCO algos love so very much:

How shocking! Nope, not really. From November 13:

We can summarize it as follows: the lame duck congress will posture, prance and pout. And it is a certainty that in the 15 (see calendar below) remaining days it is expected to be session it will get nothing done. Which means, that once again, it will be up to the market, just like last August, just like October of 2008, to implode and to shock Congress into awakening and coming up with a compromise of sorts. Only this time, now that Bernanke has shown he will "get to work" at a moment's notice, the impetus to do anything as a result of even a market plunge will be far less. After all why lose face, and put your career in jeopardy when there is the Fed which, supposedly, can offset a market crash, courtesy of the shining example set by Chuck Schumer.

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Thu, 12/20/2012 - 21:51 | 3085107 Mactheknife
Mactheknife's picture

It's GOOD to be short!

Thu, 12/20/2012 - 21:32 | 3085010 tmosley
tmosley's picture

How about a game of global thermonuclear war?

Fri, 12/21/2012 - 00:05 | 3085396 CrockettAlmanac.com
CrockettAlmanac.com's picture

Life would have been so much simpler if Matthew Broderick had decided to stop playing with his modem and play with Ally Sheedy instead.

Fri, 12/21/2012 - 00:07 | 3085566 Debt-Is-Not-Money
Debt-Is-Not-Money's picture

Strange game, the only way to win is not to play!

Fri, 12/21/2012 - 00:44 | 3085747 Diet Coke and F...
Diet Coke and Floozies's picture

What about not being on the planet during the exchange?

Thu, 12/20/2012 - 21:39 | 3085044 Silver Bug
Silver Bug's picture

The markets are on the verge of complete utter collapse.

 

http://jamesturkblog.blogspot.ca/

Thu, 12/20/2012 - 22:04 | 3085174 AllWorkedUp
AllWorkedUp's picture

Good, I hope the whole thing collapses, unless of course gold crashes with it. What sucks is if recent history is any guide, it probably will.

and then we'll be told they are liquidating gold to raise cash for redemptions.

 

Thu, 12/20/2012 - 22:17 | 3085212 michiganmaven
michiganmaven's picture

unlike equities though Gold would be a GREAT buy on a big dip !

Thu, 12/20/2012 - 22:58 | 3085351 AllWorkedUp
AllWorkedUp's picture

Well I guess that's true for anyone who's not in. I've been in for the last 8-9 years and I've had about enough of these great dip buying opportunities.

No offense meant.

Thu, 12/20/2012 - 21:39 | 3085045 erg
erg's picture

Jokers are wild and everything are jokers.

Thu, 12/20/2012 - 21:41 | 3085053 LongSoupLine
LongSoupLine's picture

It's just Pelosi and Reid covering their positions.

 

Stupid fucks, putting them through a fucking woodchipper would be an insult to the woodchipper industry.

Thu, 12/20/2012 - 21:53 | 3085125 ball-and-chain
ball-and-chain's picture

Invest in ammo and canned chili.

Buy a school bus.

Live on the road.

We are screwed.

The only thing holding up this Ponzi Scheme is worthless paper.

http://www.angrysinner.blogspot.kr/2012/12/yesterday-i-hiked-ten-miles-through_20.html

Thu, 12/20/2012 - 22:23 | 3085236 Freddie
Freddie's picture

God I hope Apple is okay. Apple is the bestest company ever.

It is a shame Jobs did not have an iAR15 with iPMags and iAmmo.  Apple would make their quarter then.

Thu, 12/20/2012 - 22:55 | 3085331 DoChenRollingBearing
DoChenRollingBearing's picture

iAK-47 would be cheaper and even more idiot-proof!

iAmmo, iMags, +++++++++++++++

Thu, 12/20/2012 - 23:01 | 3085359 Tijuana Donkey Show
Tijuana Donkey Show's picture

The IFAL,with IOS .308

Thu, 12/20/2012 - 23:00 | 3085360 Freddie
Freddie's picture

AKs - Manufactured by commies like iCrap in China.

Actually poor Chinese slave serf kids "working" for the commie elites like our commie elites.

Thu, 12/20/2012 - 23:35 | 3085474 MachoMan
MachoMan's picture

Actually, as sad as it is, chinese AKs/SKSs are not that bad...  and some models are even fairly sought after for...  gasp...  craftsmanship.  Even a blind hog finds an acorn every once and a while I guess...

Thu, 12/20/2012 - 22:27 | 3085242 treasurefish
treasurefish's picture

Somebody at the highest levels of government and international finance might have a pair of aces:

The father of Newtown Connecticut school shooter Adam Lanza is Peter Lanza who is a VP and Tax Director at GE Financial. The father of Aurora Colorado movie theater shooter James Holmes is Robert Holmes, the lead scientist for the credit score company FICO. Both men were to testify before the US Senate in the ongoing LIBOR scandal. The London Interbank Offered Rate, known as Libor, is the average interest rate at which banks can borrow from each other. 16 international banks have been implicated in this ongoing scandal, accused of rigging contracts worth trillions of dollars. HSBC has already been fined $1.9 billion and three of their low level traders arrested.

WHAT ARE THE CHANCES????

 

They might have killed two birds with one stone.  One:  If these men are involved in the LIBOR scandal, they can manipulate their testimony.  Two:  they get gun control.  How very, very clever and efficient of them, right? 

 

Thu, 12/20/2012 - 22:47 | 3085308 Freddie
Freddie's picture

1 in a quadrillon.  The Japanese know what quadrillion is.

Thu, 12/20/2012 - 22:56 | 3085342 DoChenRollingBearing
DoChenRollingBearing's picture

+ 1 quintillion, we'll all know what that is before really long.

Fri, 12/21/2012 - 02:27 | 3085940 cornedmutton
cornedmutton's picture

That's some real Six Degrees of Kevin Bacon shit right there...

Thu, 12/20/2012 - 22:53 | 3085327 blunderdog
blunderdog's picture

Well, it already happened, so I guess "the chances" were 100%....

The question is, what could this MEAN?

Thu, 12/20/2012 - 23:05 | 3085371 Orly
Orly's picture

MK/Ultra Psyops?

Fri, 12/21/2012 - 00:30 | 3085699 Yen Cross
Yen Cross's picture

 Just be yourself ORLY. +1  I went short last Sunday, and sold the bumps. There is a squeeze coming next week, before she heads down. Keep up the good posts :-)

Fri, 12/21/2012 - 01:00 | 3085776 Element
Element's picture

Looks like someone just flicked the switch on the Infinite-Improbability-Drive again.

Hate it when that happens.

 

Fri, 12/21/2012 - 01:09 | 3085807 Yen Cross
Yen Cross's picture

 I caught that Element/ No sense in adding fuel to the fire. It's all par for the course/

   Just keep posting your " tactile, well thought out comments"...  ;-)   The forum will decide.

Fri, 12/21/2012 - 01:14 | 3085814 Element
Element's picture

oh, ... you were watching that ... heh  ;)

Fri, 12/21/2012 - 01:27 | 3085830 Yen Cross
Yen Cross's picture

 I was grabbing a handfull of "Goldfish" crackers from Costco, when I accidentially turned my head...

  Any good [Witness Protection programs] are welcome.

Thu, 12/20/2012 - 23:19 | 3085421 CrockettAlmanac.com
CrockettAlmanac.com's picture

 

The father of Newtown Connecticut school shooter Adam Lanza is Peter Lanza who is a VP and Tax Director at GE Financial. The father of Aurora Colorado movie theater shooter James Holmes is Robert Holmes, the lead scientist for the credit score company FICO. Both men were to testify before the US Senate in the ongoing LIBOR scandal.

 

This story is ultimately sourced to a video by "Fabian4Liberty" who provides no evidence whatsoever.

http://www.youtube.com/watch?v=Gui-VRT_YZo

Fri, 12/21/2012 - 00:23 | 3085649 Lost Wages
Lost Wages's picture

Yeah, this particular story is a fraud. 

Thu, 12/20/2012 - 23:08 | 3085380 Chupacabra-322
Chupacabra-322's picture

ICE to buy NYSE Euronext for $8.2 billion

(Reuters) - In October, Jeff Sprecher, chief executive of upstart IntercontinentalExchange, approached NYSE Euronext CEO Duncan Niederauer with a modest proposal to team up on clearing trades in London.

 

As the men continued talking, Sprecher grew bolder, instead suggesting that ICE buy NYSE in what became an $8.2 billion deal announced on Thursday.

 

The deal will link up two powerful derivatives exchange and clearing house operators, but threatens to further reduce the clout of the New York Stock Exchange. While the New York Stock Exchange has stood for 200 years as an iconic symbol of U.S. capitalism, it is almost an afterthought in this deal.

For ICE, the crown jewel of NYSE Euronext is Liffe, Europe's second-largest derivatives market, analysts said. Niederauer had long felt that NYSE's shareholders did not appreciate the true value of the London-based futures and options exchange, and had talked to bankers about how to improve NYSE's stock price, a person familiar with the matter said.

Liffe will help ICE compete against U.S.-based CME Group, owner of the Chicago Board of Trade. Derivatives trading remains highly profitable for the exchanges, and new rules next year will dramatically expand the demand for clearing over-the-counter contracts.

The stock market businesses are less valuable to ICE. The company said it will try to spin off the Euronext European stock market businesses in a public offering, generating speculation it may also have little interest in the NYSE trading floor. Profits from stock trading have been significantly eroded by new technology and the rise of other places for investors to trade, including venues known as "dark pools."

ICE's Sprecher will be CEO of the combined organization, and the NYSE Euronext CEO will be president, a ceremonial title at many U.S. companies. In an interview, Niederauer said he would remain at least through 2014 as an "important senior member" of Sprecher's management team.

Niederauer will also be CEO of the NYSE Group. The combined company will be based in New York and Atlanta, where ICE is headqurtered.

Sprecher and Niederauerhave been friends for years, but the two stopped talking for about six weeks in 2011 when ICE teamed up with Nasdaq OMX Group to make an unsolicited bid for NYSE Euronext. That bid came even as the New York Stock Exchange operator was trying to sell itself to Deutsche Bourse. Regulatory concerns killed both deals.

Without the Nasdaq or Deutsche Bourse's huge equity operations, ICE alone has far less overlapping business and should face easy approvals, antitrust lawyers said.

The deal values each NYSE Euronext share at $33.12, a 28 percent premium to the stock's closing price on Wednesday. NYSE Euronext stock rose 34 percent to end at $32.25 on Thursday. ICE's shares fell as much as 4 percent but finished regular trading at $127.60, up 1.4 percent on the day.

ICE said it would pay annual dividends of $300 million to the companies' shareholders once the deal closes, about what NYSE pays its shareholders now.

IN THE DOLDRUMS

The deal reflected Niederauer's inability to get his company's share price out of the doldrums. Before the latest ICE offer emerged, NYSE Euronext's shares had fallen by nearly a third since ICE and Nasdaq launched their thwarted joint bid.

Further consolidation of exchanges was "inevitable" and ICE was a "great partner," Niederauer said on a call with analysts, so continuing on alone did not make sense.

"We can sit here and keep slugging away and keep working hard, but the bottom line is we had not delivered, in my mind, sufficient returns to shareholders," Niederauer said. NYSE bought Euronext, including Liffe, for 8 billion euros in 2007.

Sprecher incorporated the stalled stock price - and the unrecognized value of Liffe - as part of his pitch.

"The reason that we were prepared to pay $33 a share for a company that was trading at $24 a share was that there is a $33 company in here and the market was just not either seeing it or willing to give credit for," he said in an interview. "We said, ‘let's just force the credit.'"

The two sides negotiated in secret for about eight to 10 weeks, the two CEOs said. In options markets, there were some signs that word might have leaked out, with a sudden upswing in the demand for call options on NYSE, which perform well when a company's share price rises.

ICE started out as an online marketplace for energy trading before Sprecher initiated a string of acquisitions from the London-based International Petroleum Exchange in 2001, to the New York Board of Trade and, most recently, a handful of smaller deals, including a climate exchange and a stake in a Brazilian clearing house.

ICE's current main operations are in energy futures trading and, it has steered clear of stocks and stock-options trading, key businesses for NYSE Euronext.

"This deal is probably not going to generate a lot of concern from an antitrust perspective," said Warren Rosborough, a veteran of the U.S. Justice Department's antitrust division who is now with the law firm McDermott Will & Emery.

In clearing, ICE has a popular U.S. over-the-counter and listed business, while Liffe's operation is strong in futures and based in Europe.

Concerns over a small amount of competing derivatives business could be addressed with straightforward divestitures, Rosborough said. "It's an open question about whether it will generate questions," he added. "If there is a fix, it will be relatively easy fix."

Sprecher said the deal had been "well received" by regulators after he and Niederauer completed a "whirlwind tour" in the United States and Europe ahead of Thursday's announcement. Officials at the European Commission, the Department of Justice and Securities and Exchange Commission declined to comment.

Last year, Justice Department objections blocked ICE and Nasdaq OMX's $11 billion bid on concerns the tie-up would dominate U.S. stock listings. The rival $9.3 billion bid by Deutsche Boerse fell afoul of European regulators.

A combined ICE-NYSE Euronext would leap-frog Deutsche Boerse to become the world's third-largest exchange group with a combined market value of $15.2 billion. CME Group has a market value of $17.5 billion, Thomson Reuters data shows.

Hong Kong Exchanges and Clearing is the world's largest exchange group with a market cap of $19.5 billion.

ICE said it expected to achieve $450 million in cost savings from the takeover. In the first year after the deal closes, additional earnings of 15 percent are expected.

Long-time Wall Street traders saw the potential takeover of the venerable stock exchange by a 12-year-old derivatives upstart as fraught with symbolism.

"It's the end of an era," said a director on the board of a rival exchange who did not have clearance to speak to the press and asked not to be named. "I think ultimately the floor will be closed, because Jeff (Sprecher) has shut every floor he's ever had," the person said.

With the deal still a long way from completed, Sprecher and Niederauer said they planned to keep the high-profile NYSE trading floor running. "The floor has value and in particular, it has a lot of brand value," Niederauer said. "So we are committed. Jeff is committed."

The exchange was prepared to shut down the floor temporarily during superstorm Sandy and trade completely electronically, Wall Street executives said.

Shareholders will have the option of accepting $33.12 in cash per NYSE Euronext share or 0.2581 ICE share or a mix of $11.27 in cash and 0.1703 ICE share, subject to a maximum cash consideration of $2.7 billion.

Morgan Stanley was the lead financial adviser to ICE, with assistance from BMO Capital Markets Corp, Broadhaven Capital Partners, JPMorgan Chase & Co, Lazard Group LLC, Societe Generale Corporate & Investment Banking, and Wells Fargo Securities LLC. ICE legal advisers are Sullivan & Cromwell LLP and Shearman & Sterling LLP.

The main financial advisers to NYSE Euronext are Perella Weinberg Partners and BNP Paribas. Further financial advice to NYSE Euronext was provided by Blackstone Advisory Partners, Citigroup, Goldman Sachs & Co. and Moelis & Co. Legal advisers to NYSE Euronext are Wachtell, Lipton, Rosen & Katz, Slaughter & May, and Stibbe NV.

(Additional reporting by Luke Jeffs and David Brough in London, Jessica Toonkel, Jed Horowitz, Jonathan Spicer, David Gaffen and Karen Brettell in New York, Sarah N. Lynch and Diane Bartz in Washington and Ann Saphir in Chicago; writing by Carmel Crimmins and Aaron Pressman; Editing by Philippa Fletcher and Steve Orlofsky)

http://www.reuters.com/article/2012/12/20/us-ice-nyse-idUSBRE8BJ0LK20121220

Thu, 12/20/2012 - 23:17 | 3085412 Chupacabra-322
Chupacabra-322's picture

 Worry about a little covered news story that broke this morning In a nutshell the European based Intercontinental Exchange has proposed an $8.2 billion buyout of of the NYSE! Yes you read that right. ICE has an office in atlanta but the bulk of the company’s holdings are located in The City of London, specificlly the Bank of London which is the UK State Bank operated by the Rothschild Dynasty. The NYSE/Euronext buyout is likely to be approved by U.S. and European regulators, meaning the UK House of Lords, their Chancellor of the Exchequer and the US Senate and our Sec of the Treasury will APPROVE the deal! What does this mean? It transfers US stock market holdings, including YOUR investments to the Bank of London operated by the Rothschild Family who reports directly to The British Royal Family and The Queen of England. This will complete the sellout of America to Foreign Banking interests, mainly based in the UK and the C of L. Timing is everything! With 75% of AmeriKans diveted attention to the shootings in CT and the rest of AmeriKans just too plain stupid to realize the incredible ramifications of this event, it’s no wonder this BARE FACE sellout of America’s Financial Markets to the EU and UK is it any suprise this will be approved quietly by the TRATORs in Washington DC? It all now suddenly makes sense. Don’t believe me! Look it up for yourself it’s all over the business networks. While joe six-Pack watches sports and 20yo sitcomm re-runs. Un-be-flocking-lieveable!!!

Thu, 12/20/2012 - 23:51 | 3085516 helping_friendl...
helping_friendly_book's picture

quatzequatel will stop them tomarrow.

Fri, 12/21/2012 - 01:11 | 3085811 Element
Element's picture

We need more threads about guns though! You're not against that are you?!!!

If only smallsville USSA gave as much of a crap about laser guided bombs getting dropped on wedding-parties and banning fighter jets.

 

Just think of it as an investment in HFT IP.

Fri, 12/21/2012 - 04:54 | 3086058 Yen Cross
Yen Cross's picture

We need a mentally "conjugal"  visit between you and that crazy eyed smart ass, with a black head! Your alter ego)

Fri, 12/21/2012 - 05:38 | 3086085 Element
Element's picture

lol ... that could be awkward ... try the Morton bay bugs ...

Fri, 12/21/2012 - 05:45 | 3086089 Yen Cross
Yen Cross's picture

Port Douglas(imported) bugs are just fine/ I'm busy( Local bay prawns)

Fri, 12/21/2012 - 06:03 | 3086097 Element
Element's picture

I bet they aren't, you can catch bugs all up and down the coast there with a trawl. ;)

Thu, 12/20/2012 - 23:31 | 3085457 scatterbrains
scatterbrains's picture

speaking poker that Nanex chart kinda looks like a torn rectum... what's that black hole thing in the middle of the chart ?

Thu, 12/20/2012 - 23:46 | 3085498 Jumbotron
Jumbotron's picture

mjorden said...

Anyone up for a game of poker?

 

Why.....haven't you been poked in the ass enough by these motherfuckers ?   LOL

Thu, 12/20/2012 - 21:31 | 3084992 Quinvarius
Quinvarius's picture

Capital flight from USA 1987 style.

Thu, 12/20/2012 - 21:30 | 3084996 ugmug
ugmug's picture

It looks like the Mayan Cliff is real!

 

Thu, 12/20/2012 - 21:55 | 3085141 LongSoupLine
LongSoupLine's picture

This deserves the good stuff...

 

 

I just put away the Macallan and broke out the Milwakee's Best.  I'm just gonna drink 'till I shit myself then throw it at the fucking TV like a fucking monkey.

Thu, 12/20/2012 - 21:58 | 3085145 cougar_w
cougar_w's picture

That's just beautiful, man.

Thu, 12/20/2012 - 22:29 | 3085251 The Gooch
The Gooch's picture

Poetry, even.

 

Thu, 12/20/2012 - 22:44 | 3085298 ihedgemyhedges
ihedgemyhedges's picture

Awesome.  You broke out the Beast!!  Now just put on some R.E.M.'s "It's The End of the World As We Know It" and you will be reenacting my college days..............

Thu, 12/20/2012 - 22:48 | 3085317 cougar_w
cougar_w's picture

Oh! I am so going to do that! REM that's the ticket. "Automatic for the People" is so full of hurt. My teenage kids will think I've lost my mind ... but ... fuck'em if they can't handle it. Dad was rocking like a big dog before they were even thought about in the abstract.

Thu, 12/20/2012 - 23:07 | 3085381 Tijuana Donkey Show
Tijuana Donkey Show's picture

My kid would be cool until the shit throwing, then it would just get weird. Worse, he might start asking about the glass coffee table, and some german words.....

Fri, 12/21/2012 - 01:24 | 3085825 Yes_Questions
Yes_Questions's picture

I love you guys.

Thu, 12/20/2012 - 22:05 | 3085161 Jason T
Jason T's picture

.

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