• Gold Money
    05/03/2016 - 11:35
    Crude oil time-spreads have completely dislocated from inventories. Historically, such dislocations have proved to be short lived. We expect that either spot prices will sell-off again or the back...

Dollar Flash Crashes

Tyler Durden's picture


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...

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Wed, 08/06/2014 - 12:23 | 5054431 firstdivision
firstdivision's picture

I was wondering why I heard a sound like a million Yellen's crying out.

Wed, 08/06/2014 - 12:25 | 5054441 Jack Sheet
Jack Sheet's picture

Yellen's spread is widening as we read this....

Wed, 08/06/2014 - 12:29 | 5054470 SWCroaker
SWCroaker's picture

Bad bad mental image you evoked.  Shame on you.

Wed, 08/06/2014 - 12:52 | 5054580 Buckaroo Banzai
Buckaroo Banzai's picture

Ugh. Apply liberally until symptoms subside: http://eyebleach.us

Wed, 08/06/2014 - 12:55 | 5054590 SoberOne
SoberOne's picture

Don't tptb want a weaker dollar? Just not too weak! (Read, worthless)

Wed, 08/06/2014 - 13:13 | 5054678 Four chan
Four chan's picture

fat finger

Wed, 08/06/2014 - 13:30 | 5054757 Leonardo Fibonacci2
Leonardo Fibonacci2's picture

De-Dollarization marching forwards to Moscow. Yeah!!!

Wed, 08/06/2014 - 14:27 | 5054766 Say What Again
Say What Again's picture

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.

Wed, 08/06/2014 - 14:01 | 5054911 A82EBA
A82EBA's picture


Wed, 08/06/2014 - 14:21 | 5055012 Kirk2NCC1701
Kirk2NCC1701's picture

Ebola-free Spread.

Wed, 08/06/2014 - 12:29 | 5054471 Bananamerican
Bananamerican's picture

Mind bleach

Wed, 08/06/2014 - 13:00 | 5054610 Howard_Roark0112
Howard_Roark0112's picture

I'm long mind bleach!

Wed, 08/06/2014 - 12:31 | 5054477 Hugh G Rection
Hugh G Rection's picture

Are we going to have to start paying Israel's ISIS terrorists in Renminbi now?



Wed, 08/06/2014 - 14:22 | 5055021 Kirk2NCC1701
Kirk2NCC1701's picture

30 pieces if Ag will do.  Same as our Ploticians.

Wed, 08/06/2014 - 12:31 | 5054478 PartysOver
PartysOver's picture

Dude, thanks for the friggin visual.  Now I can't see my charts not to mention I puked a little.

Wed, 08/06/2014 - 12:32 | 5054485 CunnyFunt
CunnyFunt's picture

*** projectile vomit ***

Wed, 08/06/2014 - 12:36 | 5054506 French Frog
French Frog's picture

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...

Wed, 08/06/2014 - 12:46 | 5054555 MsCreant
MsCreant's picture

Gold has popped...

Wed, 08/06/2014 - 13:04 | 5054632 quasimodo
quasimodo's picture

Yes, and tomorrow we will be saying Gold has dropped. Wake me when it jumps $50, otherwise it's just noise. 

Wed, 08/06/2014 - 13:27 | 5054750 Rubicon
Rubicon's picture

Its just jumped $50...


Wed, 08/06/2014 - 13:19 | 5054715 NotApplicable
NotApplicable's picture

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.

Wed, 08/06/2014 - 12:39 | 5054525 GOLD AND SILVER...

I'd hit it.  Think Punish Tube.

Wed, 08/06/2014 - 12:48 | 5054560 MsCreant
MsCreant's picture

What if you liked it and wanted to be her slave boy forever?

Wed, 08/06/2014 - 12:54 | 5054588 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

What if you liked it and wanted to be her slave boy forever?

There are cyanide pills for that!

Wed, 08/06/2014 - 14:39 | 5055127 JRobby
JRobby's picture

(25,000 JPY futures contracts or around $3 billion notional).


That's gonna leave a mark. Janet!!!!

Wed, 08/06/2014 - 12:45 | 5054545 world_debt_slave
world_debt_slave's picture

Dr. Seuss?

Wed, 08/06/2014 - 12:54 | 5054586 kurt
kurt's picture

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.

Wed, 08/06/2014 - 12:24 | 5054434 McMolotov
McMolotov's picture

"Let's not get into panic mode!!!" —George Costanza

Wed, 08/06/2014 - 12:24 | 5054442 TahoeBilly2012
TahoeBilly2012's picture

The Putin puke up.

Wed, 08/06/2014 - 12:40 | 5054520 Quus Ant
Quus Ant's picture

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.

Wed, 08/06/2014 - 13:22 | 5054727 Chief KnocAHoma
Chief KnocAHoma's picture

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!

Wed, 08/06/2014 - 13:25 | 5054741 Quus Ant
Quus Ant's picture

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...

Wed, 08/06/2014 - 12:32 | 5054483 IronShield
IronShield's picture

IF you're going to panic, panic first.

Wed, 08/06/2014 - 12:50 | 5054567 insanelysane
insanelysane's picture

Look for the guy not panicing to find out who did it.

Wed, 08/06/2014 - 14:24 | 5055025 Kirk2NCC1701
Kirk2NCC1701's picture

Serenity now!  Serenity NOW! - George Costanza

Wed, 08/06/2014 - 12:24 | 5054438 timeless21
timeless21's picture

WWIII bitchez

Wed, 08/06/2014 - 12:35 | 5054499 JuliaS
JuliaS's picture

Duck and cover.

Wed, 08/06/2014 - 13:20 | 5054713 Theosebes Goodfellow
Theosebes Goodfellow's picture

"Turn that bird loose and come out from under that blanket this instant!"


Wed, 08/06/2014 - 12:25 | 5054444 LawsofPhysics
LawsofPhysics's picture

Why no corresponding crash in all those things priced in dollars in the open "market"?




Wed, 08/06/2014 - 13:07 | 5054648 Howard_Roark0112
Howard_Roark0112's picture

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. 

Wed, 08/06/2014 - 14:24 | 5054989 WhyWait
WhyWait's picture


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.

Wed, 08/06/2014 - 12:24 | 5054445 Osmium
Osmium's picture

No worries.  That shit happens to paper gold all the time.

Wed, 08/06/2014 - 12:40 | 5054526 Long-John-Silver
Long-John-Silver's picture

Everything that's manipulated are subject to flash crashes.

Wed, 08/06/2014 - 12:25 | 5054448 NOTaREALmerican
NOTaREALmerican's picture

This is the NSA !     All fx traders, stand up and back away from the keyboard!  

Wed, 08/06/2014 - 12:26 | 5054454 SheepDog-One
SheepDog-One's picture

Get to work Mr Yellen! :D

Wed, 08/06/2014 - 12:27 | 5054457 Cheduba
Cheduba's picture

Come on dollar limit down and silver limit up!

Wed, 08/06/2014 - 12:41 | 5054534 TahoeBilly2012
TahoeBilly2012's picture

Plus gas lines and hordes in the streets.

Wed, 08/06/2014 - 12:28 | 5054465 Yen Cross
Yen Cross's picture

     How many {units?} did Gartman say he was short yen again?

Wed, 08/06/2014 - 12:28 | 5054466 Keltner Channel Surf
Keltner Channel Surf's picture

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 ...

Wed, 08/06/2014 - 12:30 | 5054473 q99x2
q99x2's picture

Avoid anything related to the FED, Obama.and Banks. The Washington D.C. government sucks. Big time.

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