Today's Nat Gas (News) Leak In 3-D Action

Tyler Durden's picture


Via Nanex,

On January 31, 2013, approximately 400 milliseconds before the official release of the EIA Natural Gas Report, trading activity exploded in Natural Gas Futures and ETFs such as UGZ, UNG and BOIL. Now that the Feds have stated that they don't think there is merit in prosecuting people who get news information earlier than others by milliseconds, is it any wonder?

1. Natural Gas Futures - March 2013 (NG.H13) showing trades and depth of book.

1. UNG showing trades color coded by exchange between 10:29:59 and 10:30:04.
This resolution clearly shows trading activity starting about 400 milliseconds before the official news release time of 10:30. Note the spike at 10:30 - which is when everyone else received the information.

2. Natural Gas Futures - March 2013 (NG.H13) showing trades and depth of book.
Click for animation of this chart.

3. Natural Gas Futures - March 2013 (NG.H13) showing trades and depth of book.
Click for animation of this chart.

4. Natural Gas Futures - March 2013 (NG.H13) showing trades and depth of book.

5. UNG showing trades color coded by exchange between 10:18 and 10:36.

6. UNG showing trades color coded by exchange between 10:29:48 and 10:30:15.

Nanex Research

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Thu, 01/31/2013 - 13:16 | 3202914 Zer0head
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Thu, 01/31/2013 - 13:51 | 3203044 redpill
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Thank goodness, whatever would we do without this market-saving liquidity?  It's practically priceless.

Thu, 01/31/2013 - 17:16 | 3203979 James_Cole
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Their new(?) 3D visualizer is awesome!

Thu, 01/31/2013 - 19:55 | 3204439 fourchan
fourchan's picture

it shows congressman so and so's frontrunning order perfectly.

thats why it is allowed to go on because they have the power and the money.

Thu, 01/31/2013 - 13:19 | 3202923 max2205
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reversed..whats new

Thu, 01/31/2013 - 13:23 | 3202947 Stoploss
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Im not 100% sure, but i think even a senator could understand those five pictures.

Thu, 01/31/2013 - 13:36 | 3202994 Bastiat
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Why would he bother?

Thu, 01/31/2013 - 14:12 | 3203118 larz
larz's picture

those ARE the senator's trades my friends

Thu, 01/31/2013 - 13:44 | 3203008 CalibratedConfidence
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just reversed the reverse

Thu, 01/31/2013 - 13:17 | 3202925 slackrabbit
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Nothing surprises me anymore......

Thu, 01/31/2013 - 13:19 | 3202929 Cognitive Dissonance
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Just another normal 400 millisecond market correction.

<Move along, nothing to see here.>

At some point those who live by the millisecond will die by the millisecond.

Thu, 01/31/2013 - 13:20 | 3202930 CPL
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That's a cool plugin.  Where about's can I get it to fool around with it?

Thu, 01/31/2013 - 15:06 | 3203393 gmrpeabody
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it's a small club and you and me ain't in it.

hat tip to bigdumbnugly

Thu, 01/31/2013 - 16:08 | 3203667 geotrader
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And George Carlin RIP

Thu, 01/31/2013 - 13:20 | 3202931 bigdumbnugly
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it's a small club and you and me ain't in it.

Thu, 01/31/2013 - 13:22 | 3202940 Cognitive Dissonance
Cognitive Dissonance's picture

No.........but we seem to be under it if that's any consolation.

<But thanks for playing anyway.>

Thu, 01/31/2013 - 13:21 | 3202944 dracos_ghost
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"it's a small club and you and me ain't in it."

Yeah, but bring a big fucking club and the party gets interesting.

Thu, 01/31/2013 - 20:40 | 3204575 JeffB
JeffB's picture

Don't talk like that or we'll be getting tons of new club control legislation.


Thu, 01/31/2013 - 13:24 | 3202960 francis_sawyer
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keep in mind that it's ENTIRELY RANDOM, who, 'profts' from these randomly occurring events... & keep in mind that the same 'who' are entirely faceless & unaffiliated...


Now let's move on to GroundHog Day wagering... What's the OVER/UNDER on a quick spring in Punxatawney?...

Thu, 01/31/2013 - 13:19 | 3202933 Al Huxley
Al Huxley's picture

Stop confusing me with the facts documenting corruption in the market.  You're making me part of the lunatic fringe.  Tell me everything's good, and there's plenty of money to be made in the completely legitimate and above-board capital markets of this great nation of freedom, justice and opportunity for all.

Thu, 01/31/2013 - 13:25 | 3202957 Cognitive Dissonance
Cognitive Dissonance's picture

Please fine tune your mind to CNBC for the latest up-to-the-minute hopium.

<We now return you to your regularly scheduled programming already in progress.>

Thu, 01/31/2013 - 14:27 | 3203196 Uber Vandal
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Programming already in progress....

How many people have missed the truth right in front of them...

Thu, 01/31/2013 - 13:19 | 3202934 A Lunatic
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It's a big Club and,.... well you all know the rest by now...............

Thu, 01/31/2013 - 13:21 | 3202936 Sutton
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I've asked Think or Swim for milli-second charts.

Thu, 01/31/2013 - 13:25 | 3202959 nobusiness
nobusiness's picture

funny thing is the sellers were all wrong nat gas is now up

Thu, 01/31/2013 - 13:33 | 3202985 Al Huxley
Al Huxley's picture

Don't fucking kid yourself.  They ran the stops, covered, and went long.  When you get the news early, and can see all the stops, it makes the markets a lot easier to trade successfully.  It's ike fishing in an ornamental Koi pond with dynamite.

Thu, 01/31/2013 - 13:52 | 3203041 buzzsaw99
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Fake left, run right. Take it to the house in under twenty milliseconds.

Thu, 01/31/2013 - 13:30 | 3202974 azzhatter
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I'm sure dickholder is on the case

Thu, 01/31/2013 - 13:36 | 3202989 reader2010
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The whole thing is pretty much doomed.  If you take a good look around you, those who get ahead are those always steal, cheat, mislead, and lie. Now let's get back to the real issue that nobody gives a shit,

Thu, 01/31/2013 - 13:36 | 3202991 firstdivision
firstdivision's picture

LOL!  Natty is still priced too high.  There is a ton of excess capacity that will be making its way to market once they finish some pipelines from the Marcelles, even with the Bakken being more of a bust than a boom.

Thu, 01/31/2013 - 13:39 | 3202996 ivana
ivana's picture

so what will be "the regulator" response to all this scam going on for years?

Ban of NANEX, of course

Thu, 01/31/2013 - 13:42 | 3203002 Glass Seagull
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Cant' wait for nanex's 4-d chart, where the 4th dimension is a standardized fraud measure.

Thu, 01/31/2013 - 13:44 | 3203012 falak pema
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regulation is now a joke on both sides of the political aisle; game over in favour of oligarchy. 

Thu, 01/31/2013 - 13:44 | 3203019 LongSoupLine
LongSoupLine's picture

I'm so fucking sick of this shit. Maybe a huge fucking lawsuit against the fucking corrupt and lethargic SEC will fucking do it.

Fuck you regulators. Fucking useless assholes.

Thu, 01/31/2013 - 14:07 | 3203100 Bear
Bear's picture

What do regulators do with all the time on their hands?

Thu, 01/31/2013 - 14:26 | 3203199 CvlDobd
Thu, 01/31/2013 - 13:47 | 3203026 orangegeek
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The government writing and enforcing the rules for the system they trade.


No wonder they are trying to change the gun laws.

Thu, 01/31/2013 - 13:48 | 3203036 ziggy59
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How long before SEC bans or restricts NANEX from posting info like this?

Thu, 01/31/2013 - 13:49 | 3203037 Sandy15
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The FED was probably the one doing the buying before releaseing the info.......

Thu, 01/31/2013 - 15:16 | 3203046 tip e. canoe
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there's an ETF called BOIL?   seriously?   as in we have to burn shitloads of liquid petroleum to drill a longass hole into the earth and shoot shitloads of water into it to extract shitloads of gaseous petroleum to burn to BOIL shitloads of water just because we can't figure out a more efficient way to generate shitloads of electric current?


Thu, 01/31/2013 - 14:11 | 3203116 Squid Vicious
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Thu, 01/31/2013 - 14:14 | 3203131 Sunshine n Lollipops
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They make more in 400 milliseconds than most people do their whole lives, and don't even break a sweat.

Thu, 01/31/2013 - 17:57 | 3204106 nasa
nasa's picture

I think you meant to say that they stole more in 400 milliseconds than most people will make in their lives and the SEC won't even bother to push pause on their 'training video'.

Thu, 01/31/2013 - 14:20 | 3203167 l.kimbot
l.kimbot's picture

A geologist once told me:  "Much more money is made above ground, than EVER comes out from below ground."  I won't be surprised to see the current shale plays turn out to be investor-baiting scams, just as the Devonian Shale plays were, "back-in-the-day."

Thu, 01/31/2013 - 14:29 | 3203220 digalert
digalert's picture

Thank you Nanex for bringing us grift in living color.

Thu, 01/31/2013 - 14:31 | 3203239 Downtoolong
Downtoolong's picture

I guess this means Clarence Beeks of "Trading Places" fame is out of a job too. Who needs an inside man anymore. He's probably fallen off the extended unemployment rolls already. Call it plannedo obsolescence.

Thu, 01/31/2013 - 15:53 | 3203595 UltraP
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In the meantime Natgas has reclaimed all of its losses and then some...

Thu, 01/31/2013 - 16:17 | 3203710 Mr. Magoo
Mr. Magoo's picture

Mr Beeks has always proven reliable.

Thu, 01/31/2013 - 16:16 | 3203712 godzila
godzila's picture

Very nice visualisations - just for my understanding how do you time a news release with less than 0.5 sec accuracy ?

Thu, 01/31/2013 - 18:25 | 3204182 Lmo Mutton
Lmo Mutton's picture

It's just a little fraud.

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