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When Headline Scanning Algos Get Crushed By A Wrong Bloomberg Headline
At 1033ET, Bloomberg headlines flashed: "WHOLE MILK POWDER PRICES FALL 11.5% IN GDT AUCTION" which caused an instant collapse in Kiwi (NZDUSD) as headline-reading algos reacted. However, as "humans" knew and @FXMacro reminded Bloomberg, that was last month's drop...
BB is reporting last months fall
— FxMacro (@fxmacro) August 19, 2014
When Bloomberg reissued: "CORRECT: WHOLE MILK POWDER PRICES RISE 3.4% IN GDT AUCTION" Kiwi surged higher. These are your efficient markets...
1033ET Bloomberg: WHOLE MILK POWDER PRICES FALL 11.5% IN GDT AUCTION
1035ET @FXMacro warns BB has it wrong be careful
1036ET @FXMacro warns BB is reporting last month's fall
1038ET Bloomberg: CORRECT: WHOLE MILK POWDER PRICES RISE 3.4% IN GDT AUCTION
* * *
Welcome to the new efficient liquidity-providing markets...
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Now, who wants to make a bet someone simply wanted cheaper NZD/USD?
<<upvote>>
Prolly should fry any massive short placed justbeforehand.
<sigh, just dreaming of just us>
This system almost seems to invite being subtly manipulated.
Need to find out how to post a headline and story for the algos to read and trade it.
Is that illegal? It doesn't fucking matter.
Do a psych ops on the algos - overload algos with fake headlines.
Hacker's do that with Bloomberg and WSJ and it'll be beer and hot wings at my place as we watch the market implode.
It doesn’t bode well for the growth outlook for the coming months,” said Robin Bhar, metals analyst at Societe Generale.
They aren't "my" efficient markets; but it is amuzing.
I don't need comendy club any more... the more it's going on the more hilarious it
So then why doesn't Anonymous, hack the headlines every 10 minutes and cause REAL damage.
Seems Fight Club has moved out of the basement?
pods
#bigtime
agreed, that was the good shit there.
"free markets" at work.
/s
We need more of this - editors trolling algos. Wait, there could be a fortune to be had with such activity $$$
It's a testament to how sensationalist ZH has become when a "collapse" means a 0.25% drop in price.
I think it should be mandatory that all charts show the full range, from zero to the high value, and never in logarithmic form.
#justpointingouthowfuckeditis
Canadian Austrian, my sentiments exactly. These guys have been losing me lately. This site used to be great when they stuck to real market information, but now it's a shell of it's former self.
Don't get me wrong, I usually bemoan the 10 pip 'spikes' in JPY pairs that get sensationalised articles here, but I think this one is fair enough as compared to the overall intraday range for NZD. Plus we all get a laugh at the stupidity of the news algos. Some algo companies lost cash on that one, and that makes me smile.
Completely unplugged from reality and dependent upon the one enterprise with the worst track record in history of accurately reporting facts.
#Rigged
We'll see how "efficient" the market becomes when shit gets real.
Shoot-on-sight order in Ebola-wary Liberia
The machine is self aware...AND IT IS A TARD!
...and armed.
um, not up with the modern lingo, was that supposed to be TURD?
you laugh at the occasional hiccup, as the algo boys sip marguaritas on the beach, and you slave in a dark basement posting web content.
I think his point is that there are no "markets" of a range of end users. Its totally dominated by machines. Whether they are making money or not is not the point I don't think. These algo's have dominated all trading markets to the point that you do not know what is a fair/realistic price. Locally they dislocate prices to the point that the absolute price level is irrelevant it seems, and only the momentum matters.
You know what would be interesting to compare is how the market reacted to the same headline/information if it was last month.
If it acted exactly the same can you say purposeful manipulation with a members of Bloomberg in on the cheating here.
I wonder who was positioned to profit on this that shouldn't have been positioned as such and also if they were positioned to profit on the correction at the same time since we know once is never enough with these people when you can get away with it.
that 30k year job at bloomberg might have some benefits
Sorry but we a transaction tax on these high volume guys! Make them earn it...rather than just pumping and dumping
Are you commenting from London? Did I miss the American tobin tax??
Do the payouts for these fat finger events exceed the lawsuits? Just wondering if we can get ratio for betting line purposes...
I don't care about market liquidity!!!
What is the price of MILK POWDER, for god sake!?
I'm about to have a coffee...
I have to look for a coffee gourmets web site, ZH is confusing me...
and somebody made a shit load of money out of that 'mistake'.
Somebody just got fired at Bloomberg's Skillman/Princeton Office.
Buy the fucking dip.