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And This Is What A Full Blown Market Exodus Looks Like

Tyler Durden's picture




 

260,000 S&P 500 e-mini contracts traded in the three minutes following the fake AP Tweet. That is ~$20.4 Billion notional value 'changed hands'. For those with trailing stops, our condolences...

the day - to get a sense of the scale of volume...

 

and close up...

 

and VIX smashed higher on huge volume too...

 

and Treasury Futures...

 

eMini Depth of Book for every minute of every trading day between March 2010 and April 23, 2013. April 23, 2013 is the thick red line. Via Nanex:

 

And, via Nanex, the whole thing animated at this link

 

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Tue, 04/23/2013 - 13:55 | 3489227 Cdad
Cdad's picture

I'm sure confidence is soaring within America's investor class.

Tue, 04/23/2013 - 14:01 | 3489268 THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

I say this was an INSIDE JOB, like the Gold and Silver crash and bitcoins, the list will get larger in the days to come..just watch, probably stuff we never dreamed of..

Tue, 04/23/2013 - 14:04 | 3489296 redpill
redpill's picture

It's worse than you imagine, there were BBs in that tweet!

Tue, 04/23/2013 - 14:08 | 3489343 Tortfeasor
Tortfeasor's picture

Tehrist

Tue, 04/23/2013 - 14:14 | 3489358 Precious
Precious's picture

An algo can't even trust an AP tweet anymore.  What's the world coming to ...

Tue, 04/23/2013 - 14:13 | 3489361 ACP
ACP's picture

And the AP's twitter account has been suspended. Classic!

Tue, 04/23/2013 - 14:24 | 3489408 notbot
notbot's picture

Not to worry, Maxine Waters is the Ranking Member of the House Financial Services Committee.  I'm sure she'll get to the bottom of this.

Tue, 04/23/2013 - 14:28 | 3489452 Jonas Parker
Jonas Parker's picture

Maxine Waters is already at the bottom...

Tue, 04/23/2013 - 14:31 | 3489466 redpill
redpill's picture

And why's they called dark pools and not light pools?  These rayciss white people markets

Tue, 04/23/2013 - 14:56 | 3489602 boogerbently
boogerbently's picture

That pic is a "fishfinder."

Tue, 04/23/2013 - 21:26 | 3491153 Hive Raid
Hive Raid's picture

Reminds of this gem:

 

http://www.youtube.com/watch?v=oc1zGRUPztc

 

And then there's this:

 

http://www.youtube.com/watch?v=cesSRfXqS1Q

Tue, 04/23/2013 - 14:30 | 3489465 brewing
brewing's picture

She'd better consult with her "cousin Muddy" to get to the bottom of this...

Tue, 04/23/2013 - 14:15 | 3489366 redpill
redpill's picture

Exactly, poor software is just trying to make a living front-running the market and fucking retail investors and you have these little jerks getting in the way.  It's a travesty!

Tue, 04/23/2013 - 14:38 | 3489501 debtor of last ...
debtor of last resort's picture

Now they know that after a paper collapse the demand for physical stocks will be huge.

Tue, 04/23/2013 - 14:21 | 3489416 smlbizman
smlbizman's picture

please notice the cleansed charts on cnbs....no signs of any dip...so i guess the market went down but not the stocks in it.....

Tue, 04/23/2013 - 14:26 | 3489432 Cognitive Dissonance
Cognitive Dissonance's picture

Just a little blemish cream to smooth over the market uglies.

Tue, 04/23/2013 - 14:33 | 3489475 Ying-Yang
Ying-Yang's picture

nah CD just pop the zits

Tue, 04/23/2013 - 15:00 | 3489592 Ident 7777 economy
Ident 7777 economy's picture

 

 

 

Just testing the dynamic/impulse response characteristics of, and measuring the inherent time-delays present in the market-reporting system, gentlemen.

 

As you were ...

 

 

-- or --

 

That's one way to get a market to move.

 

 

Tue, 04/23/2013 - 16:30 | 3490057 Herd Redirectio...
Herd Redirection Committee's picture

Like shock testing!  Neato.

Tue, 04/23/2013 - 14:52 | 3489588 asteroids
asteroids's picture

It's pretty obvious that during the day almost ALL trading is done by computers pissing on each other. Retail is gone. I suspect big funds are now "buy, hold and pray".

Tue, 04/23/2013 - 16:16 | 3489987 GAAPpreNixon
GAAPpreNixon's picture

Exactly! humans simply do not move that fast. What an amazingly stupid way to destroy the last vestige of beleif in a free market.

A casino roulette wheel has better odds!

Tue, 04/23/2013 - 14:15 | 3489369 Stoploss
Stoploss's picture

Kinda knocks the shine off the techies.

It was a blip.  LOL!!

Tue, 04/23/2013 - 14:28 | 3489454 Totentänzerlied
Totentänzerlied's picture

It was a high-capacity assault tweet.

Tue, 04/23/2013 - 18:21 | 3490501 NoDebt
NoDebt's picture

It was at least the 6th major, undenyable warning that they need to put a throttle on the HFTs.  Their liquidity is pure illusion.  Like credit- when you need it you can't have it, when you have it you don't need it.  They preach liquidity (implying stability) when, in fact, their influence is the exact opposite.

Of course, nobody is ever going to stop it, least of all the SEC or any other regulator, until they break something permanently.  The regulators require iron-clad proof before taking action.  The kind of proof that only comes in hind sight after a lot of people have been irreparably hurt.

I know it's fashionable to think that speed and technology are the answers to everything these days, but in this case, I respectfully submit that I'd rather have orders handed with a phone call, like the old days, even if it costs more to execute them.

 

Tue, 04/23/2013 - 14:03 | 3489300 Scro
Scro's picture

No one gives a damn about bitcon's.

Tue, 04/23/2013 - 14:12 | 3489304 fonzannoon
fonzannoon's picture

This was the only crash that uncrashed within seconds. The rest of the crashes were just crashes.

Tell me right now everyone did not picture this. I dare you.

http://www.youtube.com/watch?v=DItgw1mU9Us

Tue, 04/23/2013 - 16:13 | 3489967 GAAPpreNixon
GAAPpreNixon's picture

Market Jitters ON STEROIDS! And these are the people that want all pensions and old age economic "securiity" based on the "stability" of the markets?

FUCK THAT!

Tue, 04/23/2013 - 14:05 | 3489312 slaughterer
slaughterer's picture

This stop harvesting will compensate for the miniscule POMO today, and fuel tomorrow's testing of ES 1600, while gold languishes at 1400.

Tue, 04/23/2013 - 14:49 | 3489566 DeadFred
DeadFred's picture

Stops are for wussies!

Tue, 04/23/2013 - 14:05 | 3489324 quintago
quintago's picture

The danger here is that somebody learned something very interesting here, and that is that inordinate amounts of money can be made with very little risk if everybody piles on. I suspect we're going to have a gradual sell of over the course of the next few weeks, and when all the big guys are out and the little guys are in; it's going to be smash and grab time between now and the EOY.

Tue, 04/23/2013 - 14:59 | 3489607 YHC-FTSE
YHC-FTSE's picture

+1 YEP. Expect to see more of these hacks in the future.  Does Reuters have a twitter account?

Tue, 04/23/2013 - 14:08 | 3489329 EmmittFitzhume
EmmittFitzhume's picture

Who wouldn't want to play musical chairs at a jillion miles per hour?!

Tue, 04/23/2013 - 14:16 | 3489373 SheepDog-One
SheepDog-One's picture

Definitely all is well! 

Tue, 04/23/2013 - 13:55 | 3489229 Jlmadyson
Jlmadyson's picture

Down to an art.

Tue, 04/23/2013 - 13:59 | 3489262 francis_sawyer
francis_sawyer's picture

Looks more like a 'Zip Line' course designed by the Lawnmower Man...

Tue, 04/23/2013 - 13:59 | 3489273 redpill
redpill's picture

I keep waiting for Max Headroom to pop into one of them rainbow charts.

Tue, 04/23/2013 - 14:18 | 3489385 akak
akak's picture

I, Robot Trader.

Tue, 04/23/2013 - 14:43 | 3489534 francis_sawyer
francis_sawyer's picture

High Frequency BLOBBING UP...

Tue, 04/23/2013 - 14:48 | 3489558 akak
akak's picture

US 'american' Market Exodusism.

Make me laugh.

Tue, 04/23/2013 - 15:13 | 3489662 TheFourthStooge-ing
TheFourthStooge-ing's picture

Absolutely. That is what Chinese citizenism citizens expected them to do. And if they do not comply, then on with their termination.

Tue, 04/23/2013 - 14:00 | 3489280 smlbizman
smlbizman's picture

they are inside my lap top forcing all my files out at gunpoint...they said they are going to do this to every laptop until they get their guy....

Tue, 04/23/2013 - 13:58 | 3489230 redpill
redpill's picture

Twerrorism!  Tweet of Mass Destruction!  Lock down the planet until they are found!  Monitor all 7-11s for hold ups!

Tue, 04/23/2013 - 14:14 | 3489363 cdude
cdude's picture

Bwame da wabbit!

Tue, 04/23/2013 - 13:56 | 3489234 williambanzai7
williambanzai7's picture

AP Twitter Password: sesame

Tue, 04/23/2013 - 13:56 | 3489240 redpill
redpill's picture

Huh, I figured it was 1, 2, 3, 4, 5

Tue, 04/23/2013 - 14:07 | 3489331 McMolotov
McMolotov's picture

That's the kind of thing an idiot would have on his luggage!

Tue, 04/23/2013 - 14:10 | 3489350 Sudden Debt
Sudden Debt's picture

well...
the admin password for our servers is

1234 followed by the company name.

the first time I saw our admin type it in... I was like.. OMG!!

Tue, 04/23/2013 - 14:15 | 3489365 FEDbuster
FEDbuster's picture

Well at least the password isn't "password".

Tue, 04/23/2013 - 15:51 | 3489861 RichardENixon
RichardENixon's picture

Oh shit, how did you guess mine?

Tue, 04/23/2013 - 14:31 | 3489457 RebelDevil
RebelDevil's picture

The big problem with passwords is that it's hard to have an easy-to-remember, strong password for every account you have (OS login, ZH, Facebook, Twitter, YouTube, Email, ect.)

I use the same password, or an easy to remember variation of that password for almost everything, and it works great, so long as you keep it as your most valuable secret. Tell someone about it, and you're fucked.

Tue, 04/23/2013 - 15:44 | 3489816 Satan
Satan's picture

My password was 666 for just the longest time...

Tue, 04/23/2013 - 14:12 | 3489359 ParkAveFlasher
ParkAveFlasher's picture

+1 Even funnier, the three dimensional chart is starting to look like plaid.

Tue, 04/23/2013 - 13:56 | 3489235 jeebus
jeebus's picture

Definitely a market I would feel safe putting my money in and that I feel compelled to participate in soon.

Tue, 04/23/2013 - 14:06 | 3489314 InTheLandOfTheBlind
InTheLandOfTheBlind's picture

you and all the other money that is "on the sidelines"   

 

/sarc off

Tue, 04/23/2013 - 14:18 | 3489340 redpill
redpill's picture

Can I interest you in a loaded mutual fund with unimaginative large domestic blue chip holdings?  They are the market's best kept secret!

 

Love,

 

Your Financial Realtor, er, Advisor

Tue, 04/23/2013 - 13:57 | 3489238 El Hosel
El Hosel's picture

Fast Fingers are the new Fat Fingers, in the New Normal.

Tue, 04/23/2013 - 13:56 | 3489239 Smuckers
Smuckers's picture

Hack swan event.

 

Tue, 04/23/2013 - 13:56 | 3489242 TumblingDice
TumblingDice's picture

Everything is ok ...shhhhh...shhhhh calm down. The bad men selling stocks are gone now.

Tue, 04/23/2013 - 13:57 | 3489250 fonzannoon
fonzannoon's picture

Amazing how fast it got bought right back. Like nothing ever happened.

Tue, 04/23/2013 - 14:02 | 3489285 redpill
redpill's picture

Nothing to see here citizen, move along!

Tue, 04/23/2013 - 14:12 | 3489355 Cognitive Dissonance
Cognitive Dissonance's picture

"Nothing to see here citizen wage slave, move along!"

Your version was so 50's and 60's so I fixed it for ya. :)

Tue, 04/23/2013 - 15:21 | 3489689 TheFourthStooge-ing
TheFourthStooge-ing's picture

Just a little blip in time. It's nothing to worry about. In fact, it's like it never happened. Forget all about it.

Understand?

Forget all about it. It's like it never happened.

Tue, 04/23/2013 - 13:59 | 3489251 Cognitive Dissonance
Cognitive Dissonance's picture

Exit stage..............anywhere.

<$10 says the end-of-day financial news stories will claim that all that volume today was confirmation that the stock market has recovered from last week.>

Tue, 04/23/2013 - 14:08 | 3489332 Bear
Bear's picture

That is exactly right. Just another manufactured 'crisis' of which to take advantage.

Tue, 04/23/2013 - 13:58 | 3489252 Everybodys All ...
Everybodys All American's picture

No volume stock market. Presto. There is volume. Now we can go higher. Right. Right.

Tue, 04/23/2013 - 14:55 | 3489603 Everybodys All ...
Everybodys All American's picture

Here come the story lines right on schedule ...  http://www.marketmontage.com/2013/04/23/bears-last-stand/?utm_source=fee...

Tue, 04/23/2013 - 13:58 | 3489253 Archetype
Archetype's picture

And the SEC says: "No comment"

Tue, 04/23/2013 - 14:04 | 3489305 redpill
redpill's picture

They are busy *fap* *fap* *fap* *fap*

Tue, 04/23/2013 - 14:16 | 3489380 bullet
bullet's picture

CME on the phone with Goldman to determine what price level to bust trades at...

Tue, 04/23/2013 - 13:58 | 3489254 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

Daily bar charts don't see this. Markets were up today on VERY STRONG VOLUME.

Pass the crack pipe, please.

Tue, 04/23/2013 - 14:18 | 3489383 FEDbuster
FEDbuster's picture

That will be the nightly MSM news take on it.

Tue, 04/23/2013 - 14:00 | 3489259 CaptainSpaulding
Tue, 04/23/2013 - 13:58 | 3489260 Swarmee
Swarmee's picture

At what point of ignoring this now obvious manipulation are regulators complicit and part of the conspiracy? I mean, they clearly already are, but when do we as citizens have enough of a case to start going after the regulators?

There is clearly no stick or carrot for them to do their jobs. Time to find a bigger stick.

Tue, 04/23/2013 - 14:05 | 3489307 smlbizman
smlbizman's picture

now i need to ask every hedeger....how long are you going to expose yourself to this abuse....it is time, you are not smart enough to win no matter how smart you are......get the fuck out now.....the risk reward pendelum is finished it is all risk and no reward.....

Tue, 04/23/2013 - 13:59 | 3489263 HD
HD's picture

Official SEC response: "Huh? What?"

Tue, 04/23/2013 - 14:06 | 3489315 fonzannoon
fonzannoon's picture

(falling off chair zipping up pants)

Tue, 04/23/2013 - 14:00 | 3489271 Gypsyducks
Gypsyducks's picture

Call me Jack's complete lack of surprise.

Tue, 04/23/2013 - 14:01 | 3489274 mjorden
mjorden's picture

Algo's sure didn't have a problem buying up the Yen.  What does that tell you.  I can't wait for the first big dissappointment from the BOJ, should be fun.

Tue, 04/23/2013 - 14:06 | 3489321 redpill
redpill's picture

It's tough for BJs to be disappointing, unless they use their teeth.  Woops might have misread that.

Tue, 04/23/2013 - 14:01 | 3489287 crosey
crosey's picture

Sumbuddy duz not want us wee folk in the market.

Or, one hell of a warning!

Tue, 04/23/2013 - 16:27 | 3490033 Bogdog
Bogdog's picture

Indeed. I'm far too exposed to forces far beyond my control or understanding. For I AM A MUPPET.

Tue, 04/23/2013 - 14:02 | 3489291 TumblingDice
TumblingDice's picture

The most interesting part of this was how it affected everything, FX, bonds, futures, everything except the euro. The euro just don't care and neither is it tied to the market any more it seems.

Tue, 04/23/2013 - 14:06 | 3489326 slaughterer
slaughterer's picture

PMs popped nominally about .5% during the flash crash confirming their safe haven status.

 

Tue, 04/23/2013 - 14:04 | 3489293 Dr. Engali
Dr. Engali's picture

Is it bad that for a brief moment ,when I first heard the news, that I was ear to ear grinning like a Cheshire cat? 

Tue, 04/23/2013 - 14:07 | 3489320 fonzannoon
fonzannoon's picture

I bought gold right when it crashed but just sold it now that everything's okay.

Doc here is my elementary conclusion to the Sprott thing earlier. Any thoughts?

I was thinking DS...Sprott probably has a massive amount of physical silver. If they can somehow crack him open like a coconut, all that physical comes pouring out into somebody's hands. Like you said this is 2008 for commodities and Sprott would be the equivelant of a major Primary Dealer, no?

Tue, 04/23/2013 - 14:19 | 3489394 Dr. Engali
Dr. Engali's picture

I guess that could be true. I don't know his size compared the the metals market. If it's anything like the Hunt brothers then I imagine that would be an accurate statement. I also don't know if he is selling any actual physical or if he is just selling paper. I was under the impression that it was just the latter.

Tue, 04/23/2013 - 14:03 | 3489302 TomGa
TomGa's picture

How convenient with the CISPA bill now in the Senate.

Tue, 04/23/2013 - 14:03 | 3489303 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

And here comes USDJPY back to the party once moar. MUST BREAK TO NEW HIGHS.

And you think "people" are doing this?

Psychology?

This is one big mind f--k.

PPT says giddy up!

Tue, 04/23/2013 - 14:04 | 3489310 Nid
Nid's picture

The VIX Futs Twin Towers

 

 

 

See chart above

Tue, 04/23/2013 - 14:04 | 3489311 Confundido
Confundido's picture

It's the same guys who manipulate gold? Gold did not seem to move...

Tue, 04/23/2013 - 14:05 | 3489322 Bastiat
Bastiat's picture

Didn't see any reaction in gold.  Apparently today, the price at which Comex will refuse to deliver, is $1410.

Tue, 04/23/2013 - 14:09 | 3489323 Quinvarius
Quinvarius's picture

Fed probably said, "thank God we don't have to prop this shit anymore".  Then they pulled the plug.  Seconds later, they realized they had to prop again and turned everything back on. 

Tue, 04/23/2013 - 14:06 | 3489327 FieldingMellish
FieldingMellish's picture

Hair trigger markets just looking for an excuse.

Tue, 04/23/2013 - 14:33 | 3489473 Bastiat
Bastiat's picture

You miss the point:  that is not a market.

Tue, 04/23/2013 - 14:09 | 3489328 DaveyJones
DaveyJones's picture

don't worry, I'm sure Eric will be handing down indictments soon 

this is the digital world a decade later

you do a fake 911 that's over in minutes

and you make more than a couple of airline shorts

Tue, 04/23/2013 - 14:08 | 3489330 1000 splendid suns
1000 splendid suns's picture

LMBA-zed if we make it to May before a crash.

Tue, 04/23/2013 - 14:08 | 3489334 yum-roadkill
yum-roadkill's picture

Nothing to see here.. Stack quietly.

Tue, 04/23/2013 - 14:09 | 3489337 gwar5
gwar5's picture

We need the cartoon Bears to explore this one!

 

Tue, 04/23/2013 - 14:08 | 3489338 Meat Hammer
Meat Hammer's picture

That was a fender bender.

Tue, 04/23/2013 - 14:08 | 3489342 Bear
Bear's picture

"Flash Hack" ... the new Normal

Tue, 04/23/2013 - 14:11 | 3489353 slaughterer
slaughterer's picture

Can they localize and identify the hackers responsible like they locked onto those two Boston bomber boys in a day or two?  Or will this hack just remain a faceless mystery?

Tue, 04/23/2013 - 14:14 | 3489362 azengrcat
azengrcat's picture

What a LOLercoaster!

Tue, 04/23/2013 - 14:14 | 3489364 mickeyman
mickeyman's picture

An exodus followed by an inodus

Tue, 04/23/2013 - 14:16 | 3489368 Fix It Again Timmy
Fix It Again Timmy's picture

Damn, for a second I was hoping they would have to replace the WH with a double-wide with chrome rims; you know, some thing that would reflect the true status of America...

Tue, 04/23/2013 - 14:17 | 3489388 Inthemix96
Inthemix96's picture

I got here late to the party,

You mean to tell me bernsplankes is still fucking breathing?

Fuck, could have been a grand day this one??

Tue, 04/23/2013 - 14:18 | 3489391 shuckster
shuckster's picture

This is why I am not intimidated by HFTs/Algos. They are completely irrational

Tue, 04/23/2013 - 14:19 | 3489399 alien-IQ
alien-IQ's picture

people get put in jail with less evidence than what these charts alone provide.

fortunately for the scumbags behind the scenes committing these crimes...they are above the law.

We need a Howard Beale moment on the idiot-box.

Tue, 04/23/2013 - 14:21 | 3489405 gwar5
gwar5's picture

WTF??

 

Nutty democrat Ricin mailer suspect released. So he framed?  Or, it was cocaine and they're OK with that.

Tue, 04/23/2013 - 15:29 | 3489717 fuu
fuu's picture

Released on bond. Cracks me up.

Tue, 04/23/2013 - 14:22 | 3489410 RebelDevil
RebelDevil's picture

And the fundamental irrationality of the stock market is revealed!

Tue, 04/23/2013 - 14:22 | 3489411 irie1029
irie1029's picture

Why would that news cause the market to tank?  Oh yeah we are in the bizzaro world.

Tue, 04/23/2013 - 14:21 | 3489415 Bluntly Put
Bluntly Put's picture

Somebody didn't get the volatility they wanted, so they resorted to more, artificial means?

http://www.businessinsider.com/art-cashin-on-big-vix-bet-2013-2

 

.

Tue, 04/23/2013 - 23:26 | 3491494 MythicalFish
MythicalFish's picture

April expired already, on, wait a sec, one day after Boston..

Tue, 04/23/2013 - 14:27 | 3489446 RougeUnderwriter
RougeUnderwriter's picture

How many of you had stop losses that just got taken out

 

Tue, 04/23/2013 - 14:30 | 3489463 orangegeek
orangegeek's picture

My bollinger bands are rectangles.....coooooool.

Tue, 04/23/2013 - 14:34 | 3489482 mac768
mac768's picture

New era Hindenburg Omen

This is what a Hindenburg Omen looks in modern times, be aware....

Tue, 04/23/2013 - 14:38 | 3489485 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

You know where to not park your savings now... Besides the usual insider trading that probably went on positioning to profit on the hacking of the twitter account I think when all is said and done this may have been the act of a concerned citizen sending a heads up to get your fucking savings out that rigged flatlined in relation to the FED's balance sheet market.

Tue, 04/23/2013 - 14:35 | 3489492 EvlTheCat
EvlTheCat's picture

He's dead Jim...

Tue, 04/23/2013 - 14:44 | 3489531 BanksterSlayer
BanksterSlayer's picture

Is the hack of AP's Twitter account considered as one of the "intangibles" for GDP?

Tue, 04/23/2013 - 14:58 | 3489609 Everybodys All ...
Everybodys All American's picture

Off balance sheet or more Obama bull shit. You make the call.

Tue, 04/23/2013 - 14:45 | 3489537 U4 eee aaa
U4 eee aaa's picture

That is just so much irony.

That the most sophisticated trading vehicle in the history of mankind is taken to the floor by a 140 character tweet

If that doesn't explain where we are in a nutshell, nothing does. We are a kevlar people pumped up on allergy medications

Tue, 04/23/2013 - 14:58 | 3489605 Godisanhftbot
Godisanhftbot's picture

 Well, the bots are written to assume every tweet is real, accurate, and actionable.

 How much did this cost them, I wonder.

Tue, 04/23/2013 - 14:47 | 3489557 gatorengineer
gatorengineer's picture

My guess is that this was just a test to see how the markets and the bots reacted.... there will be more of these welcome to the new normal.....

 

Tue, 04/23/2013 - 14:52 | 3489590 Clowns on Acid
Clowns on Acid's picture

No worries.....just getting everyone's attention before AAPL's earnigs.

With Cook's job on the line....do ya think that AAPL's earnings will show good things? Y'know any real figures / truth notwithstanding....

Tue, 04/23/2013 - 14:55 | 3489601 slaughterer
slaughterer's picture

Re. AAPL: market has forgiven (even rewarded) some monstrous misses lately (CAT et. al.).

Tue, 04/23/2013 - 15:01 | 3489626 sosoome
sosoome's picture

Precisely why I don't use trailing stops.

Tue, 04/23/2013 - 15:16 | 3489673 fuu
fuu's picture

That Nanex animation is awesome.

Tue, 04/23/2013 - 15:44 | 3489821 ThirdCoastSurfer
ThirdCoastSurfer's picture

If this chart looks like the seismograph of an earthquake, there is a reason. $20.4 billion is something far beyond collusion or insider trading. To move a free and open market in this way would be almost impossible, like breaking the earth's mantle. 

In a market where 5 lead and everyone else follows, in a descending pyramid scheme, it's easy. Those with the power to move the market in this way do not execute such $20 billion "flash" trades based on their own "fear" (sell at any cost at a loss) based on a rumor but this event exposes, by exaggeration,  the way they make money, by simultaniously shorting the market and "buying low and selling high". They do this by using their power as "market makers" to pull out the floor or market supports and manipulate it to their advantage. This routinelky happens on individual stocks, or industries or indexes, as one need only short 100 shares to buy 1 million in a market without a bid. 

Winning because you belong to the right "clique", is not a market and a close examination of this event should be conducted just as if it was an insider trading event even though the market makers were not responsible in any way for the rumor. It is the way they manipulate and "capitalize" on the way they make markets that needs to be examined in close detail. 

Tue, 04/23/2013 - 15:52 | 3489856 Dewey Cheatum Howe
Dewey Cheatum Howe's picture

Unless I am misreading things we know exactly how the big boys aka manipulators are positioned to react now when the SHTF and the safest port in the storm in the paper market is the Treasuries according to this. If anyone wants to refute this please do because I am not pimping treasuries for the sake of making money I am generally concerned for people getting their life savings decimated in this socialist wealth transfer death trap that is the market when it goes south. My point is anyone in IRA's not self directed, pensions etc should be positioning at least short term as safe as possible to preserve face value on those investments first and foremost.

I really feel it is important to break down exactly how things moved here as a warning for everyone else who does have skin in the market as savings aka investments as IRA's, 401ks etc.

Tue, 04/23/2013 - 17:59 | 3490413 Uinta
Uinta's picture

Look at all that liquidity HFTs provide

Tue, 04/23/2013 - 18:54 | 3490659 The Count
The Count's picture

The longer you stay in the markets, the higher your risk of ruin! MF Global, Madoff, algo traders taking out the stops, etc etc etc. 

The ENTIRE western financial system is a sham. Of course, nobody with any influence will ever say that publicy, because that would be your death sentance.

Tue, 04/23/2013 - 22:00 | 3491249 Mediocritas
Mediocritas's picture

That animation from Nanex is outstanding (http://www.nanex.net/aqck2/5029.html)

Watch the bid/ask (size) boxes for entertainment. Fairly symmetrical leading up to and into the plunge then just look at those bids.

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