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First Nasdaq Stock Flash-Crashes, Now The Nasdaq Index Is Crashing

Tyler Durden's picture




 

UPDATE: Nasdaq negative year-to-date; Biotechs 3-month lows. AMZN, FB, TWTR, NFLX, P all in Bear market territory

Shortly after 946amET, the stock of The Nasdaq OMX Group suddenly dropped in a mini-flash-crash from from 35.98 to 35.00 in just over 2 seconds on approximately 100,000 shares. As Nanex notes, this is what high-frequency-trading liquidity looks like. But now, an hour or so later, the Nasdaq index and most especialy its Biotech and high-growth names are being crushed. Biotechs are near 3-month lows, Momos are down 16 to 18% since FOMC, and Nasdaq is about to go negative for the year.

As Nanex explains, on April 4, 2014, starting at 9:46:20, the stock of The Nasdaq OMX Group, Inc (Symbol: NDAQ, Market Cap $6.1 Billion) suddenly dropped from 35.98 to 35.00 in just over 2 seconds on approximately 100,000 shares. 500 Trades and 2,600 top of book quotes from 10 exchanges and an unknown number of dark pools participated in the 2.7% price drop. The stock price recovered to $35.77 in just over 1 second on approximately 44,000 shares (200 trades, 1,233 quotes) on 9 exchanges and an unknown number of dark pools.

We call this,  HFT (High Frequency Trading) liquidity.

1. NDAQ Trades color coded by reporting exchange over 27 seconds of time.

And now the index itself is collapsing...

But year to date, things are getting ugly for NASDAQ...

 

As high growth momos are slammed post Yellen...

Leaving them all in bear market territory

AMZN peaked a little earlier...

 

And Biotechs near 3mo lows...

 

Russell 2000 and Nasdaq are now notably in the red for April...

 

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Fri, 04/04/2014 - 11:26 | 4624946 Obama_4_Dictator
Obama_4_Dictator's picture

Got water?.....Got Food?.....Got Ammo?....Got Metals?.....Got a Plan?....I know I do and I sleep damn well at night too.

Fri, 04/04/2014 - 11:30 | 4624956 PartysOver
PartysOver's picture

Ditto,  Bailout Plan is prepared.

Fri, 04/04/2014 - 11:36 | 4624983 THX 1178
THX 1178's picture

Crash? GOOD. Let's get this show on the fucking road already, Goddamn, Bitch!

Fri, 04/04/2014 - 11:37 | 4624987 Bearwagon
Bearwagon's picture

About fucking time!

Fri, 04/04/2014 - 11:41 | 4625004 cifo
cifo's picture

So HFT is useful sometimes, it seems....

Fri, 04/04/2014 - 12:06 | 4625098 CrashisOptimistic
CrashisOptimistic's picture

This is the HFT folks informing the authorities about who is boss.

Investigations will exonerate them soon.

Fri, 04/04/2014 - 12:20 | 4625148 Battleaxe
Battleaxe's picture

RED FRIDAY!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!

Fri, 04/04/2014 - 12:25 | 4625176 Flux
Flux's picture

Sorry to break it to you guys but this is a non-event.

Yes, the Apocalypse has been cancelled yet again. You can all go back to playing video games in your parents basement.

Fri, 04/04/2014 - 15:35 | 4625994 TheRideNeverEnds
TheRideNeverEnds's picture

Just buy the dip, we will be making new highs by this time next week. Its free money. 

Fri, 04/04/2014 - 12:18 | 4625142 jughead
jughead's picture

I got milk...and milf...so I'm good

Fri, 04/04/2014 - 11:29 | 4624951 Kaiser Sousa
Kaiser Sousa's picture

buy the dip....

 

 

 

 

hee, haw.....

Fri, 04/04/2014 - 11:33 | 4624971 spastic_colon
spastic_colon's picture

sorry ZH no offense but you're starting to sound a bit CNBSish with words like "crashing".......crashing to me is more like 30+ percent down.

Fri, 04/04/2014 - 11:57 | 4625059 Skateboarder
Skateboarder's picture

They got your click, didn't they?

Fri, 04/04/2014 - 13:09 | 4625381 spastic_colon
spastic_colon's picture

nobody likes a smartass............oh ok except me

 

::: : :: ::: :::

Fri, 04/04/2014 - 12:03 | 4625086 Chump
Chump's picture

Currently DJIA is down 26 on my screen.  Multiply that by 10 and I'll get interested.

Fri, 04/04/2014 - 11:29 | 4624953 nasdaq99
nasdaq99's picture

haoz about some janis joplin to go with that:

 

https://www.youtube.com/watch?v=YhLinEY7Zn8

Fri, 04/04/2014 - 11:33 | 4624970 replaceme
replaceme's picture

Jackie Jormp Jomp!

Fri, 04/04/2014 - 11:39 | 4624999 FuzzyDunlop21
FuzzyDunlop21's picture

GET TO THE CHOPPER!

Fri, 04/04/2014 - 12:12 | 4625124 Obama_4_Dictator
Fri, 04/04/2014 - 12:29 | 4625190 HardlyZero
HardlyZero's picture

White flag out !!!

WASHINGTON & WALL STREET: JANET YELLEN WAVES WHITE FLAG ON HOUSING
Federal Reserve Board Chairman Janet Yellen has made it known that the United States Central Bank is fine with the idea that the U.S. housing market is contracting. 

 

http://www.breitbart.com/Big-Government/2014/04/04/Washington-Wall-Stree...

 

Personally I like QID and MZZ...did well in last major selloff in 2008...for 401Ks and IRAs that can't short.

Fri, 04/04/2014 - 12:32 | 4625222 Obama_4_Dictator
Obama_4_Dictator's picture

belive it when I see it....

Fri, 04/04/2014 - 11:31 | 4624954 LawsofPhysics
LawsofPhysics's picture

Wake me when the "value" or "price" hits zero.

When fraud is the status quo, possession is the law.


Congratulations to all the central planning fuckers, the world is waking up to the fact that "prices" and "valuations" are fucking irrelevant as there has been

Fri, 04/04/2014 - 11:41 | 4625005 Kaiser Sousa
Kaiser Sousa's picture

LOP -

what do ya think..

should i buy some more Silver today at the close or wait til monday to c if they conduct another "we told u not to be buying any real money" phony paper price operation????

 

Fri, 04/04/2014 - 11:53 | 4625021 LawsofPhysics
LawsofPhysics's picture

I don't what happened to the rest of my post (no mechanism for true price discovery).

 

More to your question, buying physical PMs in "barter" quantities is never a bad thing, but I'd argue that the SDR "pricing" issue is going to be forced upon us this year.  The BRIICs are clearly posturing for a better "deal" in this new world model.  Take a hard look at your neighbors and honestly I woould spend more time getting a dependable tribe in order.

Just my two cents, as the bank runs and outright closures will be forthcoming.

On paper, many of us are going to be very, very wealth, but will not have any access to that wealth while this all gets sorted out.

Fri, 04/04/2014 - 11:55 | 4625048 Kaiser Sousa
Kaiser Sousa's picture

unfortunately neigbors as are most of my relatives, friends and associates r absolutely clueless or suffering from terminal normalcy bias... it pains me to say so, but all that dont get it ive already written off as the ones who will be knocking on the door with their hands out...

at which point i will not be able to assist cause the wagons will arleady be circled...depreesing, but it is what it is...they should have listened, done their own investigation and stepped into the light...

im blessed that i got the old lady  on board long ago and that wasnt no easy task given the extent of the brainwashing all have been subjected to...

collective is small but maybe enough for the moment...anyways 

keep stackin...cheers

Fri, 04/04/2014 - 11:58 | 4625069 dogbreath
dogbreath's picture

tell your relatives you've changed your name to Efendi

Fri, 04/04/2014 - 12:09 | 4625109 nightshiftsucks
nightshiftsucks's picture

So how did you convince your wife to get on board ? Did you have to use jedi mind tricks ? My wife thinks I'm a nut and doesn't like it when I spend money on preps.

Fri, 04/04/2014 - 12:19 | 4625139 Kaiser Sousa
Kaiser Sousa's picture

man i had to be relentless in hitting her over the head (figuratively of course) with the info...i had to show her how her time and energy as a nurse was her most valuable resource and that in exchange for her most valuable resources she was being given worhless pieces of paper that on top of which the government was stealing nearly 50% of to hand back to the bankers who r her eternal enemies...

i had to show her the history of the system, and of real money...i had to empty, by highlighting the lies told on a daily basis, her head of all the disinformation meant to enslave her and put in its place the "reality" of who runs this shit and why we r where we r....

 

 

 

Fri, 04/04/2014 - 14:02 | 4625562 StupidEarthlings
StupidEarthlings's picture

I haven't been able to convince mine yet..she starts to listen..and will agree that the system is screwed up. .but as I get deeper into the rabbit hole..she starts resisting.  And says what can ya do?..it cant get that bad..they won't let it.. :/

Can somebody point me to a short direct to the point explaination (for dummies) that details the whole story..with very quick yet proveqble info.

Low info crowd has VERY short attention span. Which IMO is why we are in this mess.

 

Most people wont do the research on thier own.

 

Any ideas?

 

Like the best 40 min video or suttin?..

 

Fri, 04/04/2014 - 14:25 | 4625652 smlbizman
smlbizman's picture

mine doesnt like hearing about it, but she trust me to have her back.....and she knows,... just would rather live without all the shit that goes on.....take ur wife utside in the am and look at the sky...chemtrails are easy to see...than another easy to see or read bite.....we overwhelm the novice with all our pent up thoughts, but you can eat a horse one bite at a time....

Fri, 04/04/2014 - 14:32 | 4625684 css1971
css1971's picture

Money as debt:

https://www.youtube.com/watch?v=jqvKjsIxT_8

To get a great overview on why the shit is heating up and why the problems aren't going to go away and why they can't fix them, Martenson's Crash course, but it's far more than 40 mins.

http://www.peakprosperity.com/crashcourse

Honestly though, the info is available in neatly packaged and easily digested format these days. I had to connect the dots myself, though even there it was all online, if people now don't know it's because they don't want to know. Pre Internet this stuff simply wasn't available to the rest of us, you could only have picked it up if you were "into" banking, economics etc.

Fri, 04/04/2014 - 15:21 | 4625964 StupidEarthlings
StupidEarthlings's picture

Thanks guys..

I have seen the money as debt..and prolly most like those..and as I watched im thinkin...she wont be able to sit thru this..and believe it.

 

Ironic tho..I did mention chemtrails..she does bring it up once in a while..but shes so innocent..she thinks the government is here to help people...thats a good one.

Fri, 04/04/2014 - 17:53 | 4626320 Kaiser Sousa
Kaiser Sousa's picture

watch every episode with your wife and those who u truly care about...

it doesnt get any simpler....good luck and i hope u get this...if not look for me on other post and i'll resend...

The Hidden Secrets of Money Series........

https://www.youtube.com/watch?v=DyV0OfU3-FU&index=2&list=PLE88E9ICdipidH...

https://www.youtube.com/playlist?list=PLE88E9ICdipidHkTehs1VbFzgwrq1jkUJ

Fri, 04/04/2014 - 18:17 | 4626634 nightshiftsucks
nightshiftsucks's picture

Thanks Kaiser

Fri, 04/04/2014 - 11:32 | 4624957 chirobliss
chirobliss's picture

What a totally dysfunctional day. No one knows where to turn, do you BTATFH or sell the 1900 SPX top. Check out this headline from Marketwatch...

..."just how much money went into mutual and exchange-traded funds this past week: Investors even piled into emerging markets..."

I guess that is what they call ringing the bell at the top!

Fri, 04/04/2014 - 11:30 | 4624960 max2205
max2205's picture

Btfd

Fri, 04/04/2014 - 11:31 | 4624961 Dr. Engali
Dr. Engali's picture

Damn momos need moar pomo from the homo.

Fri, 04/04/2014 - 11:36 | 4624986 Sands8oo
Sands8oo's picture

priceless

Fri, 04/04/2014 - 11:39 | 4624991 Bearwagon
Bearwagon's picture

Before they end up as hobos ...

Fri, 04/04/2014 - 13:00 | 4625341 Buckaroo Banzai
Buckaroo Banzai's picture

...or with a playoff record like Tony Romo.

Fri, 04/04/2014 - 11:42 | 4625010 Yen Cross
Yen Cross's picture

  lol

Fri, 04/04/2014 - 11:31 | 4624965 astoriajoe
astoriajoe's picture

Weeeeeeeeeeeee!!!!!

Fri, 04/04/2014 - 11:32 | 4624967 buzzsaw99
buzzsaw99's picture

Crashing a whole 1% off ATHs! Sack and Frost where are you?

Fri, 04/04/2014 - 11:35 | 4624975 Oh regional Indian
Oh regional Indian's picture

Summer is almost here Buzz, it's thaw and flaw time ;-)

ori

Fri, 04/04/2014 - 11:34 | 4624973 cocoablini
cocoablini's picture

Does anyone think the robotraders are punishing the DOJ for investigating their racketeering outfit? The bots will show everyone who Daddy is

Fri, 04/04/2014 - 13:29 | 4625463 atomp
atomp's picture

what ever happened to robot trader?

Fri, 04/04/2014 - 11:35 | 4624976 medium giraffe
medium giraffe's picture

Quick, invade somewhere! Anywhere!

Fri, 04/04/2014 - 11:48 | 4625029 ParkAveFlasher
ParkAveFlasher's picture

It's OK, we just had another mass killing, you do read the news, don't you?  The demons are satiated for now, you can go about your business in the meantime. 

Fri, 04/04/2014 - 11:57 | 4625061 medium giraffe
medium giraffe's picture

Hail Santa!

Fri, 04/04/2014 - 11:35 | 4624978 Hindenburg...Oh Man
Hindenburg...Oh Man's picture

I am pretty sure that the NASDAQ would sell off all day, but someone/something comes in to systematically buy when we get down around 1.5 percent negative on e mini 100. This (not HFT) is what I really want to know about! Who makes the call? Who does the buying?

Fri, 04/04/2014 - 11:42 | 4625009 spastic_colon
spastic_colon's picture

I believe you're asking a conspiracy theory type question in which you already know the conspiracy fact type answer.

 

:::::  : : ::: : :::

Fri, 04/04/2014 - 11:55 | 4625053 Comte d'herblay
Comte d'herblay's picture

Whose ever turn it is among the primary dealers this week, to put into play the 75 billion a month the FED prints and gives to them just for this purpose.

 

 

Fri, 04/04/2014 - 11:35 | 4624980 GrinandBearit
GrinandBearit's picture

Crashing?... it's a little dip.

The histrionics on this site are too funny.

Fri, 04/04/2014 - 11:53 | 4625047 Comte d'herblay
Comte d'herblay's picture

It just gives further credence to the time worn phrase:

 

The market floats on a rapids beladen river of Hope and Greed.  

Fri, 04/04/2014 - 11:36 | 4624984 jtz5
jtz5's picture

I just get the feeling they are setting up the HFT crowd as the reason for a big upcoming crash.  That will remove the scrutiny from the Fed and will deflate some bubbles.  Now with the DOJ investigating HFT (and with all the recent MSM coverage of it in the past week), the timing is right.

Fri, 04/04/2014 - 11:59 | 4625071 comob
comob's picture

THIS!

I am sure I read it here yesterday - the question about timing... Why all of a sudden are HFTs the culprit? Are they the red herring for the coming crash?

They actually appear to be a tailor made villian who will keep the gendarmes away from the guilty.  I imagine the proverbial man on the street considers HFTs (if he considers them at all) as computer programs and not as the "humans" who were charged with regulating the exchanges, nor the programmers who wrote the scripts, nor brokerages / ibanks who were happy step in front of your order to pick up their additional skim utilizing their unfair access and advantage.

Yes, this has all the makings of a "who could have seen it coming? / computer error meltdown" crash.  Adam Smith's invisible hands sure have "fat fingers"

Fri, 04/04/2014 - 11:36 | 4624985 Bernoulli
Bernoulli's picture

Popcorn & beer!

Fri, 04/04/2014 - 11:38 | 4624992 HaroldWang
HaroldWang's picture

And yet VIX is still down at very low levels. No fear in the face of crashing momos. Odd.

Fri, 04/04/2014 - 11:44 | 4625014 spastic_colon
spastic_colon's picture

its so "they" have ammo to ramp

 

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Fri, 04/04/2014 - 11:54 | 4625051 LawsofPhysics
LawsofPhysics's picture

You are acting like their is a mechanism for true price discovery, stop it!  There isn't and hasn't been for a long fucking time.

Fri, 04/04/2014 - 11:39 | 4624998 disabledvet
disabledvet's picture

time to default on the Nuker Texas.

You were never good for the money anyways.
We'll make sure Chicago ceases to exist financially as well.

Fri, 04/04/2014 - 11:39 | 4625000 HowardBeale
HowardBeale's picture

One has to wonder just how fucking total the new American fascism is, given that, as usual, the nasdaq index has been removed from the front of Yahoo Finance--during crashes, as gold is usually removed when it is rising. "This is not America."

Fri, 04/04/2014 - 11:44 | 4625015 Seasmoke
Seasmoke's picture

You say that word Crash a lot. I don't think it means, what you think it means.

Fri, 04/04/2014 - 11:56 | 4625055 Almost Solvent
Almost Solvent's picture

INCONCEIVABLE!

Fri, 04/04/2014 - 11:45 | 4625017 Al Huxley
Al Huxley's picture

If only there were a way to get some liquidity into the market - if only we had more HFTs...

Fri, 04/04/2014 - 11:46 | 4625024 firstdivision
firstdivision's picture

Peter North on line two sir.

Fri, 04/04/2014 - 11:45 | 4625019 firstdivision
firstdivision's picture

Hey look, an index that consists of a majority of stocks that have negative cash flows is crashing.  Are fundamentals making a comeback?

Fri, 04/04/2014 - 11:51 | 4625040 Comte d'herblay
Comte d'herblay's picture

From Deep Deep Space, it might take Fundies a bit longer than a millennium to stage a comeback.

J B T M Fing D. 

Fri, 04/04/2014 - 11:51 | 4625041 Comte d'herblay
Comte d'herblay's picture

From Deep Deep Space, it might take Fundies a bit longer than a millennium to stage a comeback.

J B T M Fing D. 

Fri, 04/04/2014 - 11:49 | 4625031 Bernoulli
Bernoulli's picture

I like that movie. I don't want it to stop...
LNKD 169.69 -4.11%
AMZN 321.45 -3.65%
PCLN 1,195.69 -3.37%
GOOGL 552.22 -3.37%
FB 57.46 -3.41%
NFLX 340.00 -4.14%

Fri, 04/04/2014 - 11:50 | 4625035 Heffer
Heffer's picture

Pass the popcorn

Fri, 04/04/2014 - 11:54 | 4625049 Bernoulli
Bernoulli's picture

There you go. Thinking about getting another sixpack. Want one?

Fri, 04/04/2014 - 11:49 | 4625032 Proofreder
Proofreder's picture

So, the idea is to load the algo's with web data.  Lotsa interest in ZH of late.

Sell !!!  Sell Now!  Sell everything.  Now!  Sell, sell, sell, sell, sell.

Just don't sell the PM's and if they drop also ...

BTFD

Fri, 04/04/2014 - 11:57 | 4625058 Bernoulli
Bernoulli's picture

Exactly. We should be clear that it is time to sell. sell. sell. (algos are you counting?). sell quickly. everything.

buy BEER. buy POPC.

Fri, 04/04/2014 - 11:59 | 4625078 Iam_Silverman
Iam_Silverman's picture

The NAR (Larry Yun) has been telling me that there has never been a better time to buy.  Is he right in this case?

Fri, 04/04/2014 - 11:58 | 4625066 Iam_Silverman
Iam_Silverman's picture

I guess that the best way to make this "crash" relevant is to couch it in the amount (in billions, trillions, etc.) of wealth that has suddenly "been destroyed" on the balance sheets of retirees and the working man's 401K account ledgers.

That sounds much more ominous than a 1 or 2 percent dip.

Fri, 04/04/2014 - 12:23 | 4625168 Problem Is
Problem Is's picture

HFT Trading Responsible for Flash Crashes?

From MEGA-DOUCHE BAG Manoj Naran:

"There are so many assertions that are provably false... oh my gosh so many. Speed matters less in today's market than it has ever mattered."

You gotta love a douche with no conscience...

Fri, 04/04/2014 - 12:29 | 4625204 Ignorance is bliss
Ignorance is bliss's picture

What the hell just happened to my 401k? It's not suppose to go down...just up up and away!

Fri, 04/04/2014 - 14:52 | 4625810 css1971
css1971's picture

ok.

Nasdaq green by end of day. Betcha.

Fri, 04/04/2014 - 15:04 | 4625874 The worst trader
The worst trader's picture

3:00pm pump? Or Dump?

Fri, 04/04/2014 - 16:29 | 4626326 AdvancingTime
AdvancingTime's picture

For some time I have been trying to develop a scenario for a market crash and a reasonable map to such a situation. We have never recovered from the Great Recession. By printing money, imploding interest rates, and exploding the Federal Governments deficit we have only delayed the "big one".

Most investors think that even if things go downhill fast that they will get out of the markets. But what if it hits like the flash crash on steroids? We know that can't happen because circuit breakers have been put in place to arrest panic style moves, but imagine a market that falls, trade is halted, and the market simply does not reopen for days, or even weeks. More on why it may be different this time in the article below,

http://brucewilds.blogspot.com/2013/01/flash-crash-on-steroids.html

Do NOT follow this link or you will be banned from the site!