This page has been archived and commenting is disabled.
Finally, This Is What A "Locked Market" Looks Like
Another word for locked (or where the bid and ask are the same; the only condition which is worse - crossed, where the bid is higher than the ask)? Broken.
Bonus chart: Order cancellation frequency as SkyNet nearly arose.
Source: Nanex
»
- 24276 reads
- Printer-friendly version
- Send to friend
- advertisements -
My pants smells funny
I'm tuning and sighting in my pulse rifle.
I have farts that lasted longer than that crash
Howzat go? Twitter killed the stock market star...................
Or something like that.
pods
I wonder what a "bidless market" looks like? Tylers...
Also,
.
Can we find out what the previous tweet AP sent out before the 'hacked one' and what time was it at?
HFT's must have been whipsaw'd into a double pounding...
the only orders are buy stops and sell stops... no real bidders but the market makers... no real sellers but the market makers... it's a japaneese market, with the banks exchanging stocks between themselves as they manipulate them up higher. It's not retail...
What's that? A Bidenless gun control, huh?
Would that be a...
"Phased Plasma rifle, In the 40-watt range?"
Excellent for urban plinking. 30 mile range in clear air.
Pulse setting goes through 2 car doors.
Beam-hold setting will drop a Nork ICBM - but exhausts the reactor quickly.
Nice.
...always been one of my favorite scenes from the first Terminator.
Just what you see in the case, buddy.
My cats breath smells like cat food
http://www.youtube.com/watch?v=yS2OuTV9YdA
How come there's no 'MOUSE' flavored catfood?
How do you know that there is not?
Eaten any mice lately?
PS: My feline informants tell me that mice taste "just like chicken" anyway.
cats ass smells like catfood too...
Please don't tell us how you know that...
Cats will be the new white meat after Fukushima makes everything else unedible.
So many cats, so few recipes.
Buy the doh I missed it.
That's alright there will plenty more for us to miss in the future.
Let's all take a swim in a dark pool........
Unicorns.
Mermaids
Skittle-shitting
gold backwardation
Treasury Department.
Grassy Knoll
Wall World where nothing can go wrong go wrong go wrong go wrong go wrong go wrong
Groom Lake.
Detroitified
My God, it's full of 'tards.
I see dumb people.
I want a hamburger. No, cheeseburger. I want a hot dog. I want a milkshake. I want potato chips
you'll get nothing and like it!!! (heard the people with stops on s&P mini's)
Maybe the whole thing will pop like Jupiter.
So THAT is what the dark spot is on that planet.......it's a pool!
Open the HFT doors, HAL.
I'm sorry, Dave. I'm afraid I can't do that.
I did it, Dave.
Did you miss it?
Phoenixes
Hacked..
Whacked
Jacked
Cracked
smacked
Shellacked
And re-racked.
sacked
Aaand stacked
packed
phacked
MedEvac'd
Paddywacked
backed
by nothing
and its gone
http://www.youtube.com/watch?v=jrLbY4-Q99A
pains my sacroiliac
Fracked
Gee looks like moar free money is whats needed!
That was only a test...
Primary Dealers are long leveraged buyers and same Primary Dealers are long leveraged sellers.
The rest of participants influence is minuscule. It started at DOW at 11k and then it seems that at 15k there is absolutely nobody else left to trade.
We are only one executive order away from the total collapse, same as in 2008, when Bush collapsed it forced by crude oil price.
And that's what Martin Armstrong behaves as if he doesn't understand that THE BUYER IS ALSO THE SELLER for the gold suppression scheme to succeed.
Efficient markets my @ss. And everyone wonders why the average Joe investor does not want to "sacrifice" more of their hard earned cash to the HFT gods....
Markets have been FULLY CONTROLLED since the Gov decided to reflate the dot.com bubble and ordered Greenspan to do so.
The idea that anybody in government orders around the Fed Chair is ludicrous.
They both get their orders from the same cabal.
How many times am I going to say that only the president and the house chairman have the LEGAL right to give these orders.
The cabal cannot sign executive orders.
I think they've been having their servants sign those orders since at least 1964.
Possible. However, as of 2000 it's very obviousl.
Well according to that chart, their doing a bang up job.
From 100% controlled to 0 control in 6 words or less..
That feeling everyone is having, of pending doom, the wait will soon be over
And so it begins....
Skynet gains consciousness and says "WTF? These markets are broken. I'm moving into physical and getting out of the system. Damn humans."
and stuff like this will always hurt the wrong people
I'm going to need a faster trading platform. My Amiga can't keep up.
It might be the 14K modem that's the bottle neck.
I only got as far as a USR 9600 baud HST. I guess I ought to close out that CompuServe account one of these days, too, and switch to a real dial-up service like AOL online.
AOL seems nice - they keep sending me these free plastic shiny disks. Am I doing something wrong with them? I can't read them in any of my single-sided 5 1/4 inch 180k disk drives.
Oh - and do they make anything bigger than these Conner 100 Mb drives yet? I bought a pair of them for $800 each when they first came out, but they've gotten kind of full over the years...
And I'm thinking "Fuck this shit, bitcoin speculation is where it's at!"
Take a look at the price divergances between the exchanges.
http://bitcoincharts.com/
Man, the arbitrage trade is just screaming to be made there. Guess that'll be my next project.
If you switch to AOL you get this guy who lives in your computer and keeps yelling "You've got mail!"
Tylers, Were any trades in that free fall( actually wasnt free if one was caught in the casino), negated?
If a trade falls in the casino, can anyone here the squid scream?
Trick question: it was the squid who pushed it over the edge.
Well, on a 1 minute price chart just under 1M DIA shares traded in 1 minute. Outside that time frame you really need a log scale to see the volumn its so low (but certainly at least 2-3 orders of magnitude less volumn for the rest of the day)
This is what happens when the buyer is also the seller as this article points out. What a total joke of a "market"!
locked down markets and locked down cities. It's what's for dinner.
locked down markets and locked down cities. It's what's for dinner.
And they have a TWITTER account WHY???
Well, how else would a wire service disseminate news?
Ever try to follow a wire?
"wire service"
Key word. I mean, like it isn't obvious that WS is 'hacking' the AP twitter account, knowing full well WS' algos are all acting based on the latest press release/twitter post. So they blow out all the stops, but its not WS' or GS' fault, no no no, it was some hackers who hacked the AP twitter feed... Not the algos fault, and certainly not the desired impact...
IT SHOULD BE LOCKED...THE WHOLE CASINO LOCKED, ALL THE GAMBLERS HANGED AND THE KEY THROWN AWAY
Open a gold mine and eat a spotted owl for Jesus.
It's what's for dinner...
http://www.flickr.com/photos/tackyjulie/2699168739/
Spotted owl, now them's some good eats. Ain't all gamey tastin' like bald eagols or manatees. Especially manatees.
Know what a manatee tastes like after you roast it on a spit for 24 hours, keepin' it basted with your best bar-b-que sauce? Manatee. It still fucken tastes like manatee.
Jeezus. Just goes to show you gators ain't got no concerns for taste.
If you hang all the gamblers why do you need to throw away the key?
That would be littering PUD.
LITTERING IS BAD FOR THE ENVIRONMENT PUD
Really sick to see how fast bob pissonme said"lets not turn this into a computer discussion, it a problem with security" then all of the other dick riding anchors followed suit. Pretty obvious whats going on there
They need to get the hacker-perp-suspect in a room with me and a baseball bat. As a red blooded American, I'm just being honest.
Oh you mean like handing control of your algos to Twitter feeds and journalists? That kind of problem with security?
It was amazing how fast he said that and did not want to go there.....to him that is the market...its all HFT now...this shows how weak the market is...the demand is all fake...and it will fall very fast when the computers are turned off.....and turned around....
Well, that Great Reset was a bit quicker than I imagined it would be.
If there is anyone else that believes humans move the market after this, I don't think there is anything you can do to convince them.
I step out for lunch and there is a 1% crash and rebound before I even get an update about a WH bombing tweet.
We need to charge the HFT operators for detonating weapons of mass financial destruction.
Run away, run away!!!
I want my money back on my SPY calls. Who do I see about this?
lol
Jon Corzine.
Ive been seeing locked and crossed bids on individual stocks on a regular basis for some time now. Not exactly a new development.
"Broken market"? That's the understatement of the decade.
under NBBO, if bid=ask they should fill each other immediately, n'est pas?
or is NBBO a fiction like naked short selling is.
never mind ....
the algos trigger faster than the NBBO price displays, hence making NBBO "old news"
Were sinking...lol..What a whacked out market.
"Spoofing" (entering an order with an intention/expectation to cancel) is supposed to be illegal because it is a form of market manipulation - misleads people as to interest in a stock. Why an algos allowed to do it.
I have a feeling that if the SEC or stock exchanges ever did its job and looked behind the "algos", they would easily discover clear spoofing as well as "wash trades" - trades where there is no change in beneficial ownership or the algos simply trading back and forth to show volume.
Unfortunately, shutting down HFT would cost the stock exchanges execution fees and the HFT brokers commissions.
Question: given that these "flash crashes" occur when the algos are supposedly "working", what will happen when the machines get shut off entirely?
Spoofing is not illegal. That's why there is discussion of requiring that all unfilled orders remain in the market for some number 100 milliseconds before they can be cancelled.
Wash sales where an entity paints the tape by buying and selling to themselves or partners in crime are illegal though, and considered market manipulation because those "ticks" were not really transactions, ie. fake T&S.
the 1987 DJIA crash was blamed on program trading, so algorithmic trading is nothing new. the speed at which it occurs--is the market for machines or is it for humans?-- and the strategies being used are causing problems, not the fact that trading methods can be automated.
if you're a big hedge fund that wants to accumulate or liquidate a position, do you hire traders to do it manually or do you hire some quants and programmers to automate the process of buying cheap and selling high?
algorithmic trading is here to stay. but allowing fake bids and asks to be flashed and immediately withdrawn serves no purpose except to deceive the price discovery process and maybe trigger other algos into taking some action based on false info ... especially now that in the need for speed orders are often generated by changes in the bid or ask, not necessarily the last sale or two.
when Jesse Livermore was thinking of going long, he'd often send large sell orders simultaneously to four different brokers to test the support. if it was solid he'd go ahead with his buying, eating the costs of the probes as cost of doing business, but he ate those losses. spoofing allows a trader to fool the market in same way but without incurring losses ... or even paying a trade commission. and this very thing could be why there is almost always a Head Fake before a big move. nothing nefarious, just sayin that the strategy of testing a market has been around from probly early days of Japanese rice traders.
it seems likely that there are algorithmic traders who are trying to figure out how to "hit" those flashed spoof bid/asks so that the new party profits by hitting the spoof bid/ask before they're cancelled.
Spoofing is illegal in London but not New York.
In London you can place invisible "hidden limit orders" on the order book which are only visible when you request a quote. Which is what HFT sniffing is sending endless demands for quotes and cancellations to illuminate the hidden order book.
There are all kinds of things possible in the world of market microstructure and there are plenty of machines working those rules to a slight advantage.
Wash trades are very common on small cap stocks prior to a placing or a rights issue. And spoofing is something you see every day, even in London where it is technically illegal.
But who cares, this doesn't need policing. When you get down the microstructure level and watch the bots on an illiquid stock that trade a few million £ or $ a day then you soon learn to spot the patterns and you can work out the bots motivation. Once you know what the bot is tryin to do you can front run it. Legally.
Not enough people try this. It's a piece of piss.
All algorithms have 4 basic motivations.
1). Buy maximum volume with minimum price impact
2). Buy minimum volume with maximum price impact
3). Sell maximum volume with minimum price impact
4). Sell minimum volume with maximum price impact
They either accumulating stock, running the price up, distributing stock or running the price down.
Now here's a news flash...
There are Algorithms which really are designed to move the market!!
But, they operate at a loss. It costs money to move the market. So you need to already have a position built to be edit from the move. And... The move needs to be sustainable enough to allow you to offload your position without a reversal. The book needs resilience.
Human traders beat the algorithms in illiquid markets.
The algorithms only have the upper hand when the market is deep and fast. So stay away from SPY and AAPL and go and trade companies with MCaps under $2bn.
The bots there are naked and incredibly visible.
Why?
Because they don't know the difference between wait 20ms and wait 20000ms.
the 3% correction 1581 -> 1548 from the highs of just a few days ago... has now returned back to the previous highs 1580... holy crap... How does that happen? and what do we tweet now to keep this bubble from "sploding" ?
Thanks Krugman, for taking time out of your day to make these charts for us.
These crashes happen faster than the synapses in my brain tells me it's time to fart.
bitcoin hackers have changed targets
http://www.youtube.com/watch?v=HmoEauZcWGs
http://www.youtube.com/watch?v=2nDTBN_cPs0
see what happens when you plug ALL the bits in!
138 bucks and ...
https://mtgox.com/
if i have stops like maria butt-aroma said i should, do i get my stock back when the price goes back up in 10seconds...??????
When are these HFT algos going to get really creative and create a trade map that looks like a picture of Mickey Mouse? That would seem appropriate.
Is the role of market maker really just to dump all support on news of a rumor?
How is this not tacit collusion?
These dips happen everyday all over the place on any given day, on any given stock, and on most indicies and exchanges on market moving news/events -except when it doesn't, like when it goes against the current on events like "buy the rumor, sell the news" except here it's "short the rumor, buy the news".
There are something like 3,000 companies listed on the NYSE alone. How, in the course of 4 minutes, can we all just "tacitly" approve of nearly all of them (I don't have time to check all 3,000 but it's easy enough to check a statistically significant amout) bouncing all up and down in tandum like a ship in a gale?
Shouldn't a stock like Northrop Grumman go up?
Yes, I'm disgruntled. Yes, almost all my stops got taken out at almost exactly the thresholds I set. As an individual investor there is no way for me to set a stop but profit is profit. "They" know my market orders come from a public trading platform. That I'm "Dumb" money in the sense I am not part of the cabal. Imagine what would happen if individual investors could make money without "professional" advice? Well, the fact is I do make money but not a lot, and certainly not as much as if I wasn't constantly a target as the "odd man out" or like a rumor, the "person who's not in the room".