This page has been archived and commenting is disabled.
Algos Gone Wild: BABA "Glitch" Halted 7 Seconds, "100s Of Flash Crashes" Into Close
As business media pats itself on the back for the BABA IPO, proclaiming how it's the most important, and biggest IPO of all-time and on "the most efficient and transparent" exchange, perhaps it was just oversight that they forgot to mention BABA's 7-second halt "glitch" this afternoon as BABA trading exceeded 25% of all volume at some points. But that was minor compared to the utter clusterfuck that occurred as AAPL shares started to tumble and, as Nanex points out, 100s of individual stocks instantly flash-crashed and dashed by over 1% at 1550ET as the Russell rebalanced. These are your unrigged, transparent, efficient markets...
Via Nanex,
BABA Algo trading was massive...
During the first 20 minutes, $BABA often exceeded 25% of all trading volume in NMS stocks pic.twitter.com/gnKVhI9psZ
— Eric Scott Hunsader (@nanexllc) September 19, 2014
BABA's Glitch...
The BABA 7-second glitch is what happens all the time at much smaller intervals (< 1ms): the source of #HFT profits
— Eric Scott Hunsader (@nanexllc) September 19, 2014
Then as AAPL starts to slip... (BTW, WTF after-hours?)
100s of individual stocks explode instantly in flash-crashed and dashes...as the Russell rebalance hit. There's always extra volume on quadruple witching, but this time the systems were overloaded more than usual, leading to 100's of sudden moves.
WOW! Tons of flash crashes/Dashes at 15:50:00 (all Nasdaq - from imbalances)
— Eric Scott Hunsader (@nanexllc) September 19, 2014
* * *
Do any of these charts look like the "efficient, transparent" markets we are told about every day?
»
- 13470 reads
- Printer-friendly version
- Send to friend
- advertisements -
these charts look like the efficient, transparent markets
Move along haters, nothing to see here. Do yourselves a favor and get on the winning side of history, all the negativity and whining will get you nowhere.
Weird scenes inside the gold mind
If you hit refresh they all go away! Magic!
You cld say that again!
Maybe the algos read the fine print and realized they just bought a possibly illegal Cayman Islands holding company... called "Alibaba Group Holding Limited".
Shares in BABA are only for the holding company and will never be part of the S&P500. The holding company probably violates Chinese law.
Let me speak for Qucikdraw Magraw Ma when I say to you, "Thank you for your pearls of wisdom Baba Looey".
I hate you. I always have and I always will. Go fuck yourself with your obamao inflatable doll.
where's your analysis?
even the chinese markets wouldn't touch this scam. and that says something.
Some of those charts look like PacMan.
That's b/c it IS Pacman
http://www.youtube.com/watch?v=eieOoUUl9RY
Ahhh.....cut the poor HFT Algos some slack. They're learning computers. They'll get better each and everyday shearing....errr....sheparding the sheep.
But.....gosh....that chart does indeed look like a bullet impacting ballistic gel and shattering as it goes through.
Or a High Velocity Sub-Atomic particle crashing into another.
Skynet just woke up....
For now there are 'just' glitches in the Matrix. Later there will be so much more.
<Thank God they have several budding wars waiting in the wings.>
Get your gold and silver out of banks and storage vaults, in your hands, before it is too late. This nonsense will not end well.
$1,000,000 of silver is now 3,500 pounds. That's Nearly 2 tons. TONS grasshopper. Whatchu talking about would flatten my truck tires and not pass normal airport checkin
U-haul
Get the SEC right on that...........
IEX all the way baby.............
So what are you saying? AliBaba is a scam? They sure did play it up for all it was worth before the first trade. And there's something about that Alibaba guy that strikes me as being kind of off.
Its not a scam, its magic, complete with fairy dust and unicorn pee.....
good job SEC - now back to your porn
NIN - Just Like You Imagined
http://youtu.be/6P_YISMJ4sQ
happy reverse facebook day shitizens
long live NANEX
The last chart looks perfectly normal to me I can explain every one of those moves..
Are you shitting me????
This is why I read Zero Hedge. Tyler is the only one covering this.
BABA share traders were not really buying Alibaba today. They were and are buying an offshore variable interest entity. I'm sure their broker knows that.
When it comes? Thats how fast it could happen and the doors will all be locked until its over.
7 seconds is no big deal. I have farts that last longer than that.
Get your tulips get your tulips right here while there hot
"BABA ghanoush" dip for lunch? (According to WIKI, baba ghanoush means 'pampered father' in Arabic)
Baba Yaga is a Russian witch.
These are not the charts your looking for , move along.
It's going to be really interesting when the big one hits...instead of the flash crash 1,000 point dip, you might see a 5,000 point dip in a micro-second before any triggers go off. They will then simply shut the market. That's why I tell people that if you are going to short, do it for the quick buck, because you'll never profit off the big one
It's going to be really interesting when the big one hits...instead of the flash crash 1,000 point dip, you might see a 5,000 point dip in a micro-second before any triggers go off. They will then simply shut the market. That's why I tell people that if you are going to short, do it for the quick buck, because you'll never profit off the big one
Taste the Rainbow
All of the headlines in the MSM scream "BABA soars 38% on it's IPO." But that's not what *really* happened. Technically the headline is correct, but it doesn't take into account the fact that the Underwriters purchased the stock at $68.00 and then when the stock opened at $90 or thereabouts, the underwriters that purchased the shares at $68 make an instant $22 a share.
The stock traded between $90-$100 closing at $93 so any purchase over $93 ended up a loser. The HFT guys churned the stock to the tune of almost a million shares a minute.
Here's a copy of the revised F-1 statement. Kinda boring, but go to page #317 and you can see the underwriters that participated in the IPO. Their allocation was 320 million shares. But not all of the shares can be sold on the IPO, there are loads of restrictions, sometimes referred to the "lockup".
https://www.documentcloud.org/documents/1301837-alibabas-amendment-7-to-...
You can download the entire document in PDF form. The link is on the right hand side of the page.
The Final Prospectus will have the actual allocations for each of the underwriters, but I couldn't locate a final copy anywhere.
So the best you could have done on this IPO would to have been lucky enough to buy it at $90 and if you did you would be sitting on a $3 gain by the end of the day. Hardly anything to get excited about. But if you were a member of the underwriting Syndicate you were doing your Happy Dance, because the worst you could have done was a $22 gain, and if you were lucky enough to sell it to some retail chump for $100 then you pocked $32 a share.
In addition the underwriters fees were estimated to be about $250 Million split up in proportion the underwriter's participation.
Who benefited from this IPO? The Wall Street Banks of course, not the retail investor as the MSM would have you believe.
http://www.youtube.com/watch?v=0FHEeG_uq5Y
Spot on and I might add the Hong Kong exchange turned this issue down while the SEC said ok. Just a reminder to those buying this BABA stock. You own the variable interest entity and not an actual share of the company Alibaba. The VIE is the work around and one in which you have no voting rights in Alibaba. It is China so buyer beware.
HK turned it down for the dual class share structure request to allow the original founders to retain control, because such practice doesn't exist on the HK bourse, not because of its offshore entity profit-sharing structure.
Whilst dual-class shares are pretty normal in the US market, Facebook, Google, and plenty of tech startup companies use it to keep founders or board members in control whilst holding only a small percentage of shares.
and to be honest, given their size and clout in China, it's more a case of Alibaba turning HK down than the other way around.
Its fall jacks and that means harvest season!
Yes..its fuckin rigged..the computers will do whatever they have to..just plop in the desired result..computer does the rest. Yes..this one stands out a little cuz its so huge.. but no dif than the shit they pull everday.
The thing is..it seems as tho the computer will never let it fail now..the pause it if it gets outa control..fix it..and nobody gives a fuck. Its be oming more and more blatant..and soon well be to a point where the guy behind the curtain is exposex..buck ass naked.. and jo shmo obama fone wont even fuckin care. Fuck even 'smart' people dont care.
Fuckit. .I dont even care anymore..and I been watching it for years now.
this is the way to raise TBTF's colateral.
AAA assets, more like BABA assets.
ALIBABA IS A PIECE OF SHIT
JACK MA IS AN ASSCLOWN. IN FACT, HE IS THE KING OF ASSCLOWNS
THE NYSE ARE ASSCLOWNS
THE SEC ARE ASSCLOWNS
THE PROMOTERS ARE ASSCLOWNS
EVERYONE INVOLVED WITH THIS INCREDIBLE RIPOFF IPO, THE MEGA HEIST OF THE CENTURY, SHOULD BE PUT AGAINST A WALL AND SHOT.
At over $90 Alibaba is being valued much like a US tech stock such as Ebay,Amazon, LinkedIn etc. Pretty impressive as the Cayman Holding structure only gives 1) rights to a dividend they have no intention on paying and 2) Possibly non-existent options over some of the operating entities at book value subject to PRC approval (yeah right!) and subject to Ma and Xie not nominating the options back to themselves.
Another blog on this at below link
http://wyt-i.com/wp/?p=764
Everyone I ever dealt with on ALiBaba was a scam artist. It was like linked-In for con artists.
"Ali Baba and the 40 thieves".