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Dollar Flash Crashes
No headlines on the tape for now but suddenly the world wants out of Dollars... (world's FX traders searching for Sikorski and Putin's "sell" button)... It appears led by major JPY buying as someone just puked a huge carry trade (25,000 JPY futures contracts or around $3 billion notional).
USD flash crashes...
Led by heavy volume in JPY (JPY buying or carry unwinds)
Heavy volume in futures...(25,000 JPY futures contracts or around $3 billion notional in the surge)
With USDJPY's biggest drop in 4 months...
Whocouldanode: 50 minutes ago...
FX vol is coming pic.twitter.com/fFJ0t3r2vu
— zerohedge (@zerohedge) August 6, 2014
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I was wondering why I heard a sound like a million Yellen's crying out.
Yellen's spread is widening as we read this....
Bad bad mental image you evoked. Shame on you.
Ugh. Apply liberally until symptoms subside: http://eyebleach.us
Don't tptb want a weaker dollar? Just not too weak! (Read, worthless)
fat finger
De-Dollarization marching forwards to Moscow. Yeah!!!
At the risk of sounding repetitive, I want to point out that a number of the BEAR ETFs had significantly large Avg-Trade-Size events a few minutes prior to the ForEx stuff happening. Note that this does NOT show up on the volume readings. What I am talking about is a few very large trades going off a few minutes prior to the forex.
This is actually an old trick that has been discussed in older books on trading. If an institution is planning to sell a large block of stocks and they feel there will be significant market impact, they will hedge prior to selling by either shorting the futures or buying puts. This technique has become less effective these days, due to the effects of HFT, but maybe they're using the cross between ForEx and ES.
At this point, its just a guess.
nice!
Ebola-free Spread.
Mind bleach
I'm long mind bleach!
Are we going to have to start paying Israel's ISIS terrorists in Renminbi now?
http://zionismsucks.com/2014/08/06/isis-a-zionist-franchise/
30 pieces if Ag will do. Same as our Ploticians.
Dude, thanks for the friggin visual. Now I can't see my charts not to mention I puked a little.
*** projectile vomit ***
(:-c
This is the sort of post that does ZH no justice: how can you call a 0.2 fall in the $ Index as a Flash Crash or even a Crash! The mind boggles...
Gold has popped...
Yes, and tomorrow we will be saying Gold has dropped. Wake me when it jumps $50, otherwise it's just noise.
Its just jumped $50...
Are you trying to say this is normal? I'm no rocket scientist but I think you're dismissing the element of time, hence the word "flash."
But yes, I'll agree that ZH sometimes has a flair for the over-dramatic.
I'd hit it. Think Punish Tube.
What if you liked it and wanted to be her slave boy forever?
What if you liked it and wanted to be her slave boy forever?
There are cyanide pills for that!
(25,000 JPY futures contracts or around $3 billion notional).
That's gonna leave a mark. Janet!!!!
Dr. Seuss?
The same as when Spock heard Vulcan blow up. The same as Ka-El witnessing Krypton explode. The "oh, the humanity" blimp. Let me know if you'd like more examples.
"Let's not get into panic mode!!!" —George Costanza
The Putin puke up.
Puzzling. Why is this happening now? Are we to believe countries haven't been trying to dump their dollars for quite some time? The fat finger is mysteriously MIA when Russia announces retaliatory sanctions... hmmm... Could it be TPTB will let the dollar die and blame it on Russian sanctions? Shit the bed and make tracks with a new cold war as cover?
That's my bet. At this juncture.
Cold war my ass! This one will be HOT! The Israelites will fight along side the Saudis to squash ISIS - Iran may even pitch in. Russia will start marching, China will start sailing, Argentina will cut ties to the Crown and all that will happen in chapter one.
Wait until we get to chapter five!
Maybe. I'm hoping no one wants WWIII- just the stupor and goosestepping generated by the thought of WWIII.
We'll see soon enough. Turn the page...
IF you're going to panic, panic first.
Look for the guy not panicing to find out who did it.
Serenity now! Serenity NOW! - George Costanza
WWIII bitchez
Duck and cover.
"Turn that bird loose and come out from under that blanket this instant!"
:)
Why no corresponding crash in all those things priced in dollars in the open "market"?
/s
Because a a 20 pip move over 30min on no news in the FX market is acutally pretty common, not exactly what I would call a flash crash... Thanks ZH, articles like this make me wonder why I keep coming back here. I guess it's a cleanest dirty shirt type thing...
Or maybe I just like all the doom porn.
Roark0,
I know how you feel, like emotionally you're being played, but you might as well take ZH for what it is, and pick your level of involvement and otherwise just sit back and watch the show!
If I had money in play, knowing something dramatic is about to happen, maybe this week, certainly in the next few months, a chain of events that will involve the liquidation of trillions of dollars in paper wealth; If I had wealth to manage and know an economic and political earthquake is imminent; one which, because it has been postponed so long, could at this point start anywhere and be triggered by some seemingly random event, I would be glued to this microdata looking for a signal on which way to jump.
As a former scientist who spent many years staring at seemingly random data trying to tease information out of it and working out how to separate meaningful signals from false signals and noise, I certainly recognize the process. Ancient peoples seeking signs for which route the herd would follow this year or when it's safe to plant faced the same problem.
I've also watched dozens of Baccarat players I've watched, searching for and betting on patterns in the utterly randomized sequence of the fall of the cards, passionately defending their latest theory that will make them rich.
I would hope and expect ZH has more to offer the investors than just reasons to be skittish.
As an organizer of unemployed and desperately underemployed regular folk, ranging from former bricklayers and machine operators through professionals of all kinds, I need only to be able to help people think in broad strokes about what to expect over the next months and years, and don't need that kind of detail, but I will never fault ZH for publishing it. Those investors are the bedrock and support of this site, and we owe them thanks for that.
When the moment comes to make a big move, millions will get burned because by its very nature such busts happen when investors - ZH readers included - are powerfully motivated to do the wrong thing.
"If I were a rich man, la de da de da de da .... "
I would pay careful attention to Tyler's stories about the psychological aspects of booms, bubbles and busts right about now - remembering that I as an investor am very much a part of those psychological aspects, living them from the inside.
No worries. That shit happens to paper gold all the time.
Everything that's manipulated are subject to flash crashes.
This is the NSA ! All fx traders, stand up and back away from the keyboard!
Get to work Mr Yellen! :D
Come on dollar limit down and silver limit up!
Plus gas lines and hordes in the streets.
How many {units?} did Gartman say he was short yen again?
Might be part of Putin's 'retaliation', declaring that henceforth all black market goods must be paid for in rubles, not dollars.
Earlier this year we had a few days of carry trade air pockets, and if memory serves it did not end pretty. Too early to tell, but VIX's rising slightly, stocks deciding whether to do the typical post 12:30 dip or turn back up ...
Avoid anything related to the FED, Obama.and Banks. The Washington D.C. government sucks. Big time.
The world's reserve currency just got bitch slapped in a matter of seconds on a dataless Wednesday afternoon.
I am Jack's cold sweat.
its down 3 cents. wtf are you talking about tyler?
https://www.youtube.com/watch?v=qLlUgilKqms
LOL. fonz your ability to endlessly pull zh theme/thread related clips from your hat is beyond impressive.....
Fonz gets them from the NSA data store that has excellent search capabilities and is fast too.
BAC went short the aud/usd yesterday with a stoploss @ .9350. They're starting to become my new Tom Stolper indicator...
Would this happen to be related to Russia's reactive sanctions this morning?
Let's not all jizz in our pants here. That is a nothing move; in the big scheme of things. No major support levels have been breached.
Fat finger, nothing to see here, they meant to sell 5,000,000 metric tons of gold to slam it down, move along.
Don't worry, that's just the paper paper. Real paper is still worth something.
Big fat fingers.
USD went from 81.65 to 81.47 - what's that? about 2/10's %?
interestingly, the euro made a move from 1.3355 to 1.339 - a few smidges of a %
USD still in bull trend, euro still in bear trend
Yeah,I tend to agree with you: I think Tyler let his heart outvote his wonderful mind on such exaggerated analysis headlines.
I do agree with him that the USD is eventually doomed.
disagree about the USD, but we'll see what happens
Yep - Tyler is human - but he puts up this wicked site which is changing the world and pissing off the finance "bullshit machine" establishment at the same time for the revenue of a few ads.
Got to love Tyler!!!!!!!!!!
The dollar should die already. Time to move on. Its 'day in the sun' is over.
And good riddance! Not only is it becoming worthless, it's butt-ugly. We have some of the most unattractive currencies on the planet, and they get uglier by the day with every design-change they introduce. Washington may have been a great general and President, but even he would agree that his mug shouldn't be on the currency. And if you asked those other guys, they'd say the same thing about their mugs.
I came across some old foreign currency at a yard sale this past weekend. Didn't buy it, but I sure did admire it. The colors! The beautiful imagery! Ok, most also had butt-ugly portraits of various past leaders, but they weren't troublesome, as there was just so much to admire on the rest of the bills.
All fiat currency eventually becomes worthless. So, why not at least make the stuff pretty? Then we can use it creatively for other things. Like tiling a floor with old wheat pennies...Lincoln's no beauty, but the copper takes on a real nice patina. (Use wheat pennies, as they are made of real copper. Zinc doesn't age as well.)
And, when I priced some tile made of "copper rounds", guess what? They were almost twice the price per square foot than it would cost you to use the pennies!
THAT'S how worthless our money is...not even worth what it's made of.
Shut up, dude. If the Obamaniacs hear you, next thing you know we'll have OBAMA on our money. And then I'm going to have to throw up every lunch just when I go to pay for it.
Nobody should be forced to carry pictures of Obama in their pockets.
There's money:
https://www.youtube.com/watch?v=szwclmmKwLg
And then, there's real money:
gold images
A US dollar crash is the only thing that will panic the fed. Once the Fed loses control it's over for the currency. They lose credibility as well as power and become purely reactive.
Yeah, no catastrophe, but a vertical move in 4 min from 102.28 to 101.78 in USD.JPY was certainly worth noting by Tylers Inc. (hell, even Pisani just reported on it), but more important this 12:10 move seems to have coincided with at least an interim bottom in the volatility measures for the indices, with prices now back to 10:30 levels. Will be interesting to see if we do a round-trip down, or if the 1:30 buyers return hungry from lunch ...
A 0.2 drop is hardly a "flash crash." Look at the scale of the graph.
A drop of 5.0 or more would qualify in my view.
Gold & money Pr0n http://www.youtube.com/watch?v=CvRAqR2pAgw sex sexy sex x
Suffer, Jet City! Jumpin' Hack Flash, it's a gas, gas, gas! Jumping Jack Lew, it's a gas, gas, gas!
Oh, wham, bam, thank you Ma'am.
I don't enjoy the mixed metaphors between David Bowie and Rolling Stones song lyrics.
They both enjoy a plentiful song inventory , I strongly advise to pick one at a time, there's plenty to pick from......
Yep it crashed .25% Just a bit more than the .22% it soared on 7/30/2014 Hasn't even given up the entirety of that gain yet.
Paddy - I agree. I do love ZH for putting up the currency moves.
FILE THIS STATEMENT UNDER "IRONY"
"“You can’t escape the stratosphere,” Sebastien Galy, a senior currency strategist at Societe Generale SA in New York, said Aug. 1. It’s “a broad dollar world which is dominating everything and the consequences are suffered when there’s mismanagement of the system. But it’s one that has no good alternative at this point in time.”"
http://www.bloomberg.com/news/2014-08-06/russia-sanctions-accelerate-ris...
The games central bankers are playing in supporting their and other currencies has reached a dangerous level, we may be in the "red zone". Currencies are important chips in the commerce of government and the business of running a country.
History has shown that in the past both leaders and governments have fallen with the demise of their coin. If people lose faith in the system it could just come crashing down around our ears. At a time when billions of dollars can be traded in just the blink of an eye imagine how fast things could go to hell. More on this subject in the article below.
http://brucewilds.blogspot.com/2013/01/currencies-games-in-danger-zone.h...