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The Winners And Losers In Today's NEE And AEP Flash Crashes
(Milli)seconds after today's market open, utilities NextEra Energy (NEE) and American Electric Power (AEP) did what most stocks in the New Normal do when there is an unexpected event (like a 4 sigma plunge in the Nikkei): they flash crashed.
What is different about AEP and NEE is that unlike most other daily stocks that implode in a matter of milliseconds, the collective market cap of the two companies was nearly $60 billion, which in turn sent the broader utilities index down over 10%. Of course, for a few milliseconds it was more like $30 billion: because that is how much in capitalization was lost in under one second, when today's flash crash du jour struck.
But fear not: anyone who got stopped out under $76.19 in NEE and under $46.03 in AEP are the "lucky" ones, and the trades were marked as "Aberrant." Alas since that simply means the trades are excluded from daily high and low charts, that is hardly comforting for anyone.
In other words, the "unlucky ones" are, well, everyone, because no trades were actually DKed. So to all those who lost electronic money due to what was an electronic trading algo gone wrong, can submit an electronic complaint to the NYSE, which will be promptly ignored by an electronic email filter. In other news, investor confidence in electronic markets has never been higher.
NEE
AES
Courtesy of Nanex
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"It's just the cost of doing bidness." - Tony Soprano
Just curious - can ridiculously low limit orders be hit by a flash crash?
Considering the nature of flash crashes.........please define "ridiculously low".
Lol - lets say $1. I know i'm leaving 99 pennies on the table but i'm feeling generous
If thats the case I think its about time to play the 1000 limit $1 orders game with midcap companies...
I assume anything is not only possible but probable in Bizzaro land.
The question is always will you be able to escape with your fat gains? And what will you do if you can't?
It's simple really..., if you're in the right club, you keep the gains.
If not, the tansaction will be cancelled.
Maybe Bart can help those poor new castrati.
Yes, but they'll reversed...right?
only if you're somebody important.
Yeah, I figured "someone important" had stop loss orders placed at $76 and $46. JPM or GS, probably.
Or Corzine, perhaps?
No Worries...I shorted these two losers and placed my winnings into Bitcoin....oh...wait.
Bitcoin has been fairly stable around $120 as of late. Which is more than can be said about NEE, AEP, and all the other companies which have been the targets of renegade algorithms.
The cool part is this happened right after the 2011 decline too - before it started another push higher. There will probably be a few of these cycles as more investment occurs and adoption increases.
Oh look - Bitcoin just traded at 133.37 or "L33T". How amusing.
Could you connect me with your supervisor?
Flash crashes are the new norm
Just like regular false flag T attacks
So it was a false flag that lowered my T, not middle age.
hands up - this is a robbery
lol
Kill the HFT's...NOW
I don't believe this happened.
I just looked on Marketwatch and even CNBC and it didn't say a thing about it. if it happened, I'm sure they'd report it.
Besides, who buys multi billion dollar utilities any more? who needs utilities?
Just buy Facebook.
Why would CNBC report bad news?
They're a fucking infomercial channel. Nothing more, nothing less.
flash crashes and tornadoes (HAARP) repeatedly ripping the same town apart are the new normal.
I was very pleased to find that somehow I had picked up 100 XOM shares for $76.58 at the open today... I hope the trade stands.
As long as the Sh1t and P!$$ closes green nothing else matters
It's all fun and games until...., well, ah....it's all fun and games.
Ya shoulda played with house money;
call "1 800 heM FBen", for your free unrestricted zero interest money line.
Government policy in the new normal; put the word "bank" in your company name, heads you win; tails, US dollar holders lose.
Ain't no bout a dout it, there are going to be a lot more losers than winners after the crash.
Here is a big loser and hopefully, the beginning of the euro house cleaning. The house cleaning in the USA seems to have hit a stop after everyone forgot about the hugely insane cover up of the boston drill event, the Benghazi cover up, and now seem to be stuck in the endless cycles of the minor distractions. Oh how nice it would be to see real justice jail these criminals. Maybe this is the first of a long line to be prosecuted?
French minister says IMF boss Christine Lagarde 'must resign' if she is charged in connection with £270million fraud and embezzlement scam:
http://www.dailymail.co.uk/news/article-2329449/French-minister-says-IMF...
flash crashes are the new bail ins. It's all the rage.
When you file taxes, doesn't a group called the IRS get a list of your holdings? Wonder if they are targeting people for flash crashes?
AES isn't AEP
Spock: Fascinating, Captain: they've created criminal machines to rob each other.
and yet again "market architecture" cries out for more liquidity....more liquidity. hmmm. "the only liquidity we offer is the possibility of greater economic growth going forward." so yet again "Wall Street has to figure that one out too." can someone say "normalize (interest rates) now"? if this follows the "20 years ago" Japanese script then obviously the only thing rallying over the long haul here is the dollar and treasuries.
The bad side of guaranteed infinite market liquidity is that it distorts pricing. If there is ever a hint of real free market pricing and artificial bigs get pulled, these flash crashes happen.
The only way to fix it is to make illiquidity normal, so that free markets determine price, not computers.
HFT 3-Card monte in your face. I use limit orders $10 bucks under thinly traded stocks and front-run their ass.
Pardon my ignorance, but why doesn't this show up in the drill down to daily performance charts for AEP on CNBC? Where else besides Nanex can this be seen?
Nevermind, I believe I found it.
Half of the retired population in Florida crapped their depends on this one.
Its ok to flash crash a high flyer, but once you start messing with utilities like AEP you are playing with ancient money. If any were left in the market with their "safe" utilities this just killed it once and for all.
HFT clusterfuck