The Retail Trader Lockout - Today's 'Market' "Issues" Were Worse Than The Flash Crash

Tyler Durden's picture

For 39 minutes today, as we noted earlier, the US stock "market" broke. As Nanex details, a total of 1,384 symbols were affected as 100s of stocks trade with crossed NBBOs, practically eliminating any chance for retail traders to transact. Options market were frantic, volatility swung around like a Ukrainian border-patrol agent, and yet the US equity indices limped ever higher. For those who fear 'the big one', for those who understand market liquidity, for those who got a glimpse of what happens when large crowds meet small doors in the high-yield credit market, today's "broken" market was a cold hard lesson that few 'moms and pops' would have noticed... but from the perspective of 'ability to trade' - today's market was worse than the Nasdaq Blackout and the Flash Crash... Hedge accordingly.


Via Nanex,

The Retail Lockout of 2014

Hundreds of symbols with crossed NBBOs

1. Count of symbols with a crossed NBBO each second.  Event started at 11:58:25 and ended at 12:37:27. Over symbols were affected during several seconds of time. A total of 1,384 symbols were affected.

2. Final impact at the end of the day: higher count of instances of symbols with a crossed NBBO each second than Nasdaq blackout or Flash Crash!

3. BITA - trades color coded by reporting exchange and NBBO (red indicates where it was crossed).

4. Showing Retail trades - note how these trades only occur when the NBBO is not locked (dark gray). In other words, a crossed NBBO shuts down retail order matching.

5. Retail selling - gets the worst prices when the NBBO returns to normal.

6. Retail buying.


*  *  *

But apart from that... and the year's lowest trading volume... stocks are at all-time highs so that must be good right... until someone decides to sell that is... to lock in that 'wealth effect'... now we leave it to the game theorists to decide, is first mover advantage net positive now so close to the end of QE?

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Cognitive Dissonance's picture

This is getting uglier and uglier. It staggers the mind to consider how much further down the rabbit hole this might go before.....well, before......

Grande Tetons's picture

At the bottom of the rabbit hole one will find a gigantic heap of cans. 

QEternity's picture

There's a dark at the end of the tunnel and its coming right for us

SoberOne's picture

<---  buy phyz now with SD IRA

<--- ride miners up, catch real estate on way down

BeetleBailey's picture

<---buy phyz now/stock/pack/load

<---hunker down and squanker over

A Nanny Moose's picture

So my 401K administrator tells me I cannot withdraw from my 401K except in retirement, or hardship cases. Whose moeny is it? Why am I contributing to a 401K still? Where is my cheese?

WOAR's picture

Why do you pay insurance when you never get to use it?

Follow the flow of money...right out of your pocket!

spinone's picture

sure you can, just take a 30% penalty.  If you think the market will go down by more than 30% its a good idea.

Lets Buy The Dip's picture

As the third quarter gets underway, we stick to our expectation for three percent growth and with it, higher equity prices I would rather listen to people that get it right all the time, and analysts who are accurate. Like these guys =>

Is it ME or do the comments in ZEROHEDGE each day seem like the world is about to explode, and the market crash to 0 zero?

armageddon addahere's picture

This has been true every day for the last 5 years and every day they have been wrong.

PT's picture

It's true.  ZH will have you convinced that the world will end tomorrow, or in five minutes time.  And then it doesn't.  But all the facts that lead to the conclusion are still there!!!!!!!!!  All the problems are still there.  All the maths is still there.

When the empirical data has zero correlation to the equation, you are using the wrong equation.
If the maths doesn't work then the real maths is hidden.  In this case, I think we're beyond maths and up to people analysis.  The numbers will be bent any which way to keep certain people happy.  Find the right people and you can find the truth about what the numbers will do.  Remove the right people from the equation (whether through natural or artificial means) and the predicted Chaos from the visible maths will re-enter the Realm.

PT's picture

Random walk.  You know the drunk is going to fall off the cliff but you have no idea when.  And he may reach the edge many times and then turn back before the eventual toppling.

BringOnTheAsteroid's picture

Excuse me, they are called African Americans. And while we are on the topic of racism, Jews are now to be referred to as Goyim Challenged.

Cognitive Dissonance's picture

One that soon enough will grow so large it will swallow Wall Street and the NY Fed. Then (of course) the 'taxpayer' will once again ride to the rescue because.....well, because the Fed is the Fed.

<The Fed is dead. Long live the Fed.>

kill switch's picture

the 'taxpayer' will once again ride to the rescue because.....



The taxpayer game of bailout is over...the taxpayer's pockets are fucking empty so I guess it's fuck the FED time....Or about time...



dracos_ghost's picture

I'd like to think you're right but since pensions are the bag holders of last record, the PBGC is idling to bailout the inevitable collapse. Gonna make TARP look like a clam bake. All courtesy of the US taxpayer - empty pockets or not. Absolute seizure of everything is on the table.

kill switch's picture




Your right they'll stop at nothing...Status subnormal  

Not trying to rub it in but I did the lump sum trick....>>>PM's


Good thing as Peter Schiff lost me $750,000.00 NEVER LET ANYONE MANAGE YOUR FIAT...I'm still healed but at the time it hurt....

barliman's picture


PM's are headed WAY down before they are headed way up ... and even then the valuations will primarily be in fiat.

@CD - the FED is dead; they just haven't buried the body yet. There is only ONE way for the current "markets" to play out ...

They no longer worry about the retail trade. They no longer worry about the directions given by the 0.01%. I know at least 6 of the old timers here were involved in a long discussion back before 99% of the folks currently on ZH even knew it existed where the topic of "What happens when the people who CONTROL the markets decide to do whatever the fuck they want with EVERYBODY'S money?".

It's why the big names were backing - they needed the insider information. And even then, the "rash of suicides" didn't deter the men behind the curtains.

If you want to "see" how the story ends? Buy an old vehicle. Empty all but 1 quart of oil from the engine. Turn vehicle on and place a concrete block on the gas pedal. Stand back and wait for "end market simulation" to complete.

Any questions?

hairInTheSoup's picture

"Absolute seizure of everything is on the table."

which is the agenda from the beginning, make no mistake & noone shall get confuse about it, it's the agenda of fiat currency, it's not an accident or the unexpected failure of the system, it's the plan all along; their great bankster cycle.

spinone's picture

when you invest, you give your money to corporations and banks.  don't be suprised if they dont want to give it back.

stocktivity's picture

As long as they can print money out of thin air, it's not close to being over. Until then ...It's all Bullshit!!!!

himaroid's picture

Brer Rabbit discovers the Tar Baby and Brer Fox are in there with nary a briar patch in sight.

Seasmoke's picture

I am all in, on Gold. There is no more hedging for me. 

Spitzer's picture

Gold was up $25 on the day of the flash crash.


FinalEvent's picture

Nope, it remained at the bottom of the lake where I had that accident.

Ewtman's picture

If you put any stock into Elliott Wave theory, buying gold at these levels is still not a good idea...



JuliaS's picture

I like how the Elliott Wave exists in a complete vacuum. No geopolitical risks in gold, no QE, no contracts manipulation. Simply a buch of lines juping up and down, deflecting off imaginary borders and cycling like a tune. Nice little world where no commodity exists but the one thing being traded. Always right in hindsight. Just keep zooming in and out of the chart until the pattern looks right. The beauty of technical analysis!

hedgiex's picture

YES. Just skim the volatilies across spaces (market segments) like switching channels of yr TVs and ignore the porn streams from the economists/market pundits. Risk/Liquidity/Returns are all encapsulated in the flashing digits and you dance with their momentum. That's Trading.

StandardDeviant's picture

Whenever I hear "Elliott Wave" I think of epicycles, and of Karl Popper's falsifiability.

F0ster's picture

I'm all in on Gold too. It's finally time to get out of paper completely.

Fijiaaron's picture

You know the Leaden Rule, right?
He who has the lead gets the gold.

WOAR's picture

It takes balls to use lead.

Some people have gone short on balls, though...

youngman's picture

when it does can bet the Retail trader will be locked out...

Grande Tetons's picture point shorting. No sarc. Do not short. Do not short. Do no short. Makes for a nice neck tattoo. 

Cognitive Dissonance's picture

Only if s/he wants to sell. Buying is always welcome.

FieldingMellish's picture

Its like a satellite re-entering the atmosphere. A shake, a judder, a panel here, an antenna there, then.... BOOM!

Atomizer's picture

I just looked at the charts, what side of this retail bloke was playing? I need to know this before commenting. 

His entire portfolio could of hinged ass backwards. Let's really see the risks taken and validate manipulation vs retard retail investor. 

Just need to be fair before launching information already collected. 

Pumpkin's picture

I did a detailedl research of the markets in 2008-2009, to begin serious investing.  I discovered that the markets are rigged.  Anyone who investes in this market without an unfair advantage, as in part of 'the rigged' is a fool.  The casino is at least honest about their advantage.  Land, gold and silver (guns and ammo a given) only.  With the land it is required that you study law for 6 years or so, to figure what to do about property taxation.

fuu's picture

The holographic market.

Atomizer's picture

Sounds like another round of CDS and short stock bans form 2008.

These incompetent fuckwits are making sure the historians sell the story. What the story, Tranny -in - Chief will be able to bond with his Kenyan brothers. Working for a company scamming for slave labor and swipping credit cards to build a health care empire. Watch and laugh


Boomerang Kids: Welcome Home, Get a Job - Episode.





Osmium's picture

I need a little help here.  How do electronic markets get crossed?  Shouldn't the trades still execute at the best bid?

Seize Mars's picture


There are several markets to execute a given NASDAQ stock on. It's possible for them to not be on the same page.

barliman's picture


You didn't read "Flash Boys". Go read "Flash Boys".

That is the shortest, quickest way for you to get your answer,

barliman's picture


If you don't know the answer AFTER you read "Flash Boys" ... stick a fork in yourself, you're done.