From A Twitter Hack To The Complete Evaporation Of All Market Liquidity In One Chart

Tyler Durden's picture




 

Presented with little comment aside to note that based on a tweet, the 'deeply liquid' US equity market collapsed instantaneously as all those liquidity-providing 'algos' jumped ship...

The lower pane shows the market depth disappearing courtesy of Nanex.

 

The S&P tested down to yesterday's close filling the gap perfectly...

The good news, if indeed this was merely a test for "the big one", is that everyone managed to sell ahead of everyone else. Right?

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Tue, 04/23/2013 - 13:27 | 3488996 FL_Conservative
FL_Conservative's picture

So that's what a bidless market would look like.  A total Baumgartner.  Hhhmmm...................

Tue, 04/23/2013 - 13:29 | 3489012 Stackers
Stackers's picture

Hacked Tweets now listed right under pressure cookers on the Weapons of Mass Destruction list.

Tue, 04/23/2013 - 13:32 | 3489043 FL_Conservative
FL_Conservative's picture

Can algos experience an adrenalin rush?   Looks like the post-rush "crash" settling in.  Whatever it takes. 

Tue, 04/23/2013 - 13:31 | 3489058 The Limerick King
The Limerick King's picture

 

 

The market was crashed by a tweet

The algos just cannot be beat

A simple display

Of rules gone astray

And how HFT algos cheat

Tue, 04/23/2013 - 13:35 | 3489084 redpill
redpill's picture

The fact that HFT is still allowed/encouraged is the perfect illustration of how the government is an eager partner with Wall Street in the ongoing to strategy to fuck everyone else over.

Tue, 04/23/2013 - 13:37 | 3489105 otto skorzeny
otto skorzeny's picture

just keep this bitch up til I'm cashed out of my 401Ks

Tue, 04/23/2013 - 13:50 | 3489190 redpill
redpill's picture

They should hack both the CNBC and Bloomberg accounts and have them simultaneously tweet that COMEX has defaulted.

Tue, 04/23/2013 - 13:52 | 3489195 doomandbloom
doomandbloom's picture

CISPAAAA!

Tue, 04/23/2013 - 13:55 | 3489231 Ruffcut
Ruffcut's picture

Testing, testing... Is this mic on?

algo one reporting all is good.

Tue, 04/23/2013 - 13:57 | 3489241 francis_sawyer
francis_sawyer's picture

Well ~ It's a damn good thing that I opened up that TD Ameritrade account with the 'PATTERN RECOGNITION SOFTWARE', so I could set those limit orders & 'FIRE OFF THE TRADE' & profit, just at the right time [even though I was shanking 8 irons at the driving range when it all went down]...

Wed, 04/24/2013 - 01:41 | 3491757 StychoKiller
StychoKiller's picture

Bwahahaha, me and my killbot buddies are gonna kill all humans!

Make your time!

Tue, 04/23/2013 - 14:39 | 3489513 prains
prains's picture

can't wait until CNN runs some indepth analysis

Tue, 04/23/2013 - 13:56 | 3489210 Peter Pan
Peter Pan's picture

Deleted

Tue, 04/23/2013 - 13:53 | 3489218 Peter Pan
Peter Pan's picture

Are you cashing out of one lot of paper for another form of paper or are you cashing out to buy gold?

Tue, 04/23/2013 - 14:03 | 3489298 zerozulu
zerozulu's picture

one of the two needs to be regulated, market or tweeter.

Tue, 04/23/2013 - 15:05 | 3489635 butchee
butchee's picture

401k=sheeple pen

Tue, 04/23/2013 - 13:38 | 3489111 FL_Conservative
FL_Conservative's picture

Got to get those campaign contributions from somewhere.  Certainly not going to get enough dough for re-election from the average citizen giving them $5-25.

Tue, 04/23/2013 - 13:43 | 3489138 ParkAveFlasher
ParkAveFlasher's picture

You typed "$", I think you meant "%", and that comes after the digits.

Every tax dollar is a campaign contribution, if every decision driving legislation is itself geared towards re-election.

Tue, 04/23/2013 - 13:44 | 3489153 MrBoompi
MrBoompi's picture

Exactly.  Reps need to collect an average of at least $2000 per day, weekends included, and Senators $6000.  Now you know why they don't even have the time to read the bills they sign.

Tue, 04/23/2013 - 13:46 | 3489170 NotApplicable
NotApplicable's picture

Well, it's not like they have ANY choice, now is it?

"Do as we say, and nobody gets hurt!"

Tue, 04/23/2013 - 13:35 | 3489095 THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

Maybe it was true and there was an explosion..Can't believe everything the gov't says..Obama might have blew his top.

Tue, 04/23/2013 - 13:40 | 3489119 BLOTTO
BLOTTO's picture

Shit...Am i looking at seismograph?

Tue, 04/23/2013 - 13:55 | 3489217 Urban Redneck
Urban Redneck's picture

The middle one looks more like a school of piranhas that got spooked and vanished, but they be back and then sheeple will tread back to the water to drink too, after all, how dangerous can it be with so many fishes doing just fine... 

Tue, 04/23/2013 - 14:34 | 3489486 Ying-Yang
Ying-Yang's picture

Popped his cork? The big O?

Wed, 04/24/2013 - 01:44 | 3491760 StychoKiller
StychoKiller's picture

"Sand people are easily frightened, but they will return, and in greater numbers."

Tue, 04/23/2013 - 13:52 | 3489205 redpill
redpill's picture

@President_Obama  I ATE THE BONESSSSS

Tue, 04/23/2013 - 13:57 | 3489247 francis_sawyer
francis_sawyer's picture

Homes has eaten A LOT of bones in his time I imagine...

Tue, 04/23/2013 - 13:42 | 3489146 GernB
GernB's picture

BTFD, if you're fast enough.

Tue, 04/23/2013 - 13:46 | 3489160 Dr. Engali
Dr. Engali's picture

As usual your quick wit is amazing. I think you're in nigh frequency limerick mode.

Tue, 04/23/2013 - 13:50 | 3489197 BLOTTO
BLOTTO's picture

It would be very interesting to get the stats on who were the first ones out?

Tue, 04/23/2013 - 14:36 | 3489489 Ying-Yang
Ying-Yang's picture

There once was a Prez from Niger.......

Tue, 04/23/2013 - 15:40 | 3489788 The Limerick King
The Limerick King's picture

Thanks Doc!

Tue, 04/23/2013 - 13:34 | 3489091 brewing
brewing's picture

never given one of these out before - +1...

Tue, 04/23/2013 - 14:01 | 3489277 Bangin7GramRocks
Bangin7GramRocks's picture

And yet many of you still gamble every day in a rigged system. Should I post the number for Gamblers Anonymous?

Tue, 04/23/2013 - 13:46 | 3489168 THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

I bet you 1 billion dollars... this was an INSIDE JOB

Tue, 04/23/2013 - 13:58 | 3489258 Ruffcut
Ruffcut's picture

betting is for suckers, they just showed why.

Tue, 04/23/2013 - 13:35 | 3489093 smlbizman
smlbizman's picture

how many joe six packs just had all thier stops taken out....im sure they will cancel ALLLL transactions because of this...yea right that even made me laugh

Tue, 04/23/2013 - 13:44 | 3489156 Stoploss
Stoploss's picture

Sure has been a fucked up first quarter...

 

Hey!!  Only 14 more to go!!!

Tue, 04/23/2013 - 13:49 | 3489187 BlueStreet
BlueStreet's picture

TMZ is 'reporting' this same group as hacked twitter also:

 

We're told the group -- which claims responsibility for swatting RihannaDiddyRyan SeacrestJustin TimberlakeParis HiltonChris BrownTom Cruise and others -- contacted authorities through 911 and threatened to detonate 8 devices around the White House perimeter if President Obama does not declare war within 24 hours.

Tue, 04/23/2013 - 14:58 | 3489572 Jekyll_n_Hyde_Island
Jekyll_n_Hyde_Island's picture

Look at the first graph.  Backup call generator (algo) kicked in and recovered the market 80 points before floor traders ever had time to recover from the false news.

  Algos don't kill people, the people that write and implement algos kill people.

Tue, 04/23/2013 - 13:26 | 3488980 Mercury
Mercury's picture

If you were sitting in front of a machine you noticed that individual stocks didn't even have time to move...in case anyone is still unclear on which part is the dog and which part is the tail.

Question is: who was standing there with a bucket?

Tue, 04/23/2013 - 13:29 | 3489015 THECOMINGDEPRESSION
THECOMINGDEPRESSION's picture

..that cleared out about a billion or 10. stop losses all hit

Tue, 04/23/2013 - 13:46 | 3489172 Sudden Debt
Sudden Debt's picture

10 billion... plus expenses for that unplanned burial at sea which we'll have to cancel... so... about another 50 bucks give or take...

Tue, 04/23/2013 - 13:47 | 3489174 Frank N. Beans
Frank N. Beans's picture

they needed to raise a few bucks via commissions

 

Tue, 04/23/2013 - 13:48 | 3489183 NotApplicable
NotApplicable's picture

And to think, all ya gotta do is drain out all the liquidity first, and POOF! They're gone!

Tue, 04/23/2013 - 13:30 | 3489032 Cdad
Cdad's picture

Correct...as 90% of the daily liquiditeeeee is the Roach Motel [SPY] and various other compromised ETFs.

Nice market, Wall Street!  Can't wait to buy those fanta second collapses....

Wed, 04/24/2013 - 01:47 | 3491763 StychoKiller
StychoKiller's picture

Some nice wallpaper for youse...

Tue, 04/23/2013 - 13:33 | 3489057 A_Dog
A_Dog's picture

i am a dog

Tue, 04/23/2013 - 14:05 | 3489306 redux2redux
redux2redux's picture

But if you are not the lead dog, the view never changes...

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