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This Is What Happens When Someone Is Desperate To Sell $750 Million Of Stocks
At 1532ET today (Columbus Day - with half the market absent), someone - apparently having waited to see if the almost 'ubiquitous' 330pm Ramp would occur - decided it was time to dump three-quarters of a billion dollars notional of US equity market exposure in 1 second. The results of this forced liquidation (or utter disregard for fiduciary duty) were as follows...
A complete collapse of all liquidity in the S&P 500 e-mini futures contract - the world's most liquid equity exposure vehicle...
The liquidity evaporation began at 15:32:37 after 4,492 eMini contracts were dumped in 28 milliseconds $ES_F $SPY
— Eric Scott Hunsader (@nanexllc) October 13, 2014
An instantaneous 9 point plunge in the S&P 500...
And total chaos in the S&P 500 ETF (SPY) which saw offers below bids for what is hours to liquidity-providing HFTs (who appeared to step away for coffee)...
This chart shows just 1 second of SPY trading (corresponding to the volume spike above)
As Nasdaq quotes fell dramatically behind reality...
Given that NYSE margin debt at record highs and investor net worth at record lows...
The vicious cycle feedback from any extended push lower on liquidations is more than a little concerning (and may well explain the aggressive VIX buying today - and massive inversion of the VIX term structure)
Charts: Bloomberg and Nanex and @noalpha_allbeta
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they thot it was gold they were dumping
the PPT was the dumper. they have a lot of inventory to sell.
Now that is a FANCY VIX term structure chart.... way nicer than the ones I was building years ago in grad school.
Is this a case of he who panics first panics best?
But Tyler, these are the deepest, most liquid markets in the world...
well, they were.
After so many late afternoon meltups it was interesting to see a meltdown.
Refreshing.
Putin
Columbus
Now now, Mr Tyler, if the market totally tanks tomorrow then they will have met their fiduciary duty by prudent panicking the day before
Nice to see some volume for a change
more of the same so far in Japan tonight.
im short so it was prolly me.
I wunder how Soros is doing on all those puts he (coincidentally)bought several weeks ago ... must be nice to be on the inside.
Someone forgot to tell China and Russia we were just playing games yesterday
ahahahaha, 750 mil and the liquidity is gone?!? The last bailout should have provided one thousand times more.
Hilarious! All those asshole HFTs got their bids hit when they didn't really want or expect it to happen, then they lost their asses. Kudos to whoever took a slice out of them.
In 1929, crash day was 10/29/29....so tomorrow is 10/14/14. I've had this day circled for a month.
I'm in the mood for a 500 down day for the Dow.
Puss. 500 down Dow? I'm in the mood for -300 on the S&P 500. Let's get this shit started and real!
Be careful what you ask for......
That is nothing like they'll see in the year 2525, if man is still alive.
+1 Gentlemen Broncos reference
Row your boat to your LCS.
Hahahah, that thing is as rusty as an old barrel filled with rain water.
Just be like Tylers, and circle every day.
;)
Fiduciary duty to survive, and trade another day, or retire completely.
Bankruptcy is not a way of survival or a viable option if one appreciates
being employed. Frankly, it kind of looks like the markets are going south
and might topple pretty damn soon IMHO.
The real problem is we really don't know if it's a machine or a human that went stupid but the speed says machine....HAL, open the pod bay doors...
Dave, may I ask why?
'Cause it's really really cold out here and I'll pull your algorythm punk ass plug if you don't MF'er.
FYI There was a planned financial war-game today as reported by the Guardian on the 12th...for the 13th in the mid afternoon...ummm
http://www.theguardian.com/business/2014/oct/12/world-leaders-war-games-...
"...will be subjected to a “financial war game” test on Oct. 13. At a closed-door meeting at the FDIC’s headquarters, “the top financial brass from the Treasuries and central banks of Britain and the U.S. are to take part in a war game,” Larry Elliott wrote in the Guardian, “to test how they would handle another Lehman Brothers-style banking crisis.”
British Chancellor of the Exchequer George Osborne, in announcing the war game to the press at the IMF meeting in Washington, tried to put a bright face on the exercise: “No war game is like war itself. But it means we will be far better prepared. I’m sure this is not the last time this will happen.”
Among those present on the U.S. side will be Treasury Secretary Jack Lew and Deputy Secretary Sarah Bloom Raskin; Fed chief Janet Yellen, Robert Dudley of the NY Fed, and Fed Governor Daniel Tarullo; the heads of the FDIC, the SEC, the CFTC, and the Office of the Comptroller of the Currency. From the British side, in addition Osborne, Mark Carney of the Bank of England will be there along with his deputy, Nemat Shafik; the heads of the Prudential Regulation Authority and the Financial Conduct Authority."
hahaha ... Nemat Shafik as deputy governor and a canadien as the governor ... really, suck it up you suckers
All those criminals in one room? Oh snap, a missed opportunity. Where is ISIS with a couple of RPG's when you need them?
Grimaldus
Yes, where is the Fed in all this...or is this the Fed in all this?
bank holiday. fed can't do anything. doors are locked, lights out, nobody home.
See my comment above...the Fed participated with the FDIC this afternoon, in a "financial war-game" test. It was all over the UK and EU press on the 12th...
Dark Pool? No, looks like it was a mud flat, with a little surface moisture.
Waddell & Reed ride again!!
Like the proverbial game of chicken, but with nailguns?
Gunfight in a dark room...
"Is this a case of he who panics first panics best?"
That is the way it works in horror movies like this one.
They are trying to get out before they won't be able to get out. The market is coming close to a major collapse and they are trying to vent it off on these daily 150 to 300 the negative days. It won't work.
We'll really have to wait and see. I'm not ruling out a huge bear trap here. With any luck though, all the excess will be flushed out of the indices, and some semblance of rationality will be restored
"Some semblance of rationality" closed up, turned off the lights, and went home a looooong time ago.
One little guy ...not even a billion...has a dump and all liquidity dries up.
We all know the fucktards are going to crash this, blame Russia and then declare martial law while they haul off whats left of the wealth in the US. Then the border fence that everyone is begging for will keep us all from following them.
Unleashing biological warfare on civilians? They need to be peeled alive and rotated beteween salt dry bath and wet lime soak....
TSA is nothing but capital controls disguised as national security. You see that they want to use lie detectors on passengers now? How about testing water in airports...looking for diamonds?
The most expensive and retarded pay per view show in history. PS its not real.
RIPS
What's the panic? The only folks being forced to raise capital here are Governments...state and local mostly..although certainly foreign. There's no more "America" just "Government America."
Default has not been a risk since the collapse in 2008. It has in fact been happening! A billon dollars for a single war ship? REALLY? While Detroit goes bankrupt? Nice war you got going here!
"So we can fight Ebola...in Africa" Really?
Where the hell is HHS here? That thing has a budget the size of the Pentagon. Send those people over. They're all a bunch of know it all pricks.
@ disabled vet,
"There's no more "America" just "Government America."
Bull Shit, there never fucking was. What you had was a Criminal Fraud entity in the UNITED STATES, CORP. INC. "Posing" as a functional Government for the people, by the people & for the people.
A Criminal entity Chartered out of the State of Delaware via the Criminal Act of 1871.
Gives new meaning to the words national security, when the nation is a coporation that you are a slave to.
They are a fraud and the civil war was about preventing all humans from being slaves to the money changers/paper creators.
+1 Chupa
RIPS
Deathrips,
Civil War = Control
Revolution = Changes
So, the civil war was to exploit (control) the South, because the ‘North’ economy was stagnating [railroad and land speculation collapsed, living the north bankrupted and its savings gone] while the ‘South’ was prospering (free labor, remember?).
And about the “Act of 1871” (District of Columbia Organic Act of 1871) incorporated the federal District of Columbia for municipal purposes by repealing the city’s charters of Washington and Georgetown; it did NOT magically transform the United States of America itself into a corporation, if is that what you’re trying to insinuate.
god i really dislike this woman.....every post of her's reminds me of mrs.kravitz from 'bewitched'
Evolution is a better option. Limitation to two kind of sucks.
We know the outcome of the first two options.
Just my opinion.
RIPS
“Facts do not cease to exist because they are ignored.” -- Aldous Huxley, Complete Essays 2, 1926-29
Good thing the FEMA camps and coffins are all ready and waiting.
putaipan:
I think you are getting too personal on a public forum.
Everyone is entitled to their own opinion.
No one is forcing you to read her comments.
He was just giving his opinion.
we don't give a fuck, just to say
barre-de-rire
Who is we? Me, myself and I?
Well well, where do we find people like you? To think of the irony that you and your ancestors benefited by being in the epicenter of the greatest financial boom for the middle class in history and, glossing over the coup in 1913, you instead paint a consistent stroke with your ink pen and blot out all the successful achievements the country has made in the last 2 centuries of existence on this planet? Students and where they come from these days. I'd fail you.
And the real irony (beside their ignorance of these facts) Pontificating P..., it’s that they can not accept it (this reality).
you can cross the Mexican border, pay a couple bribes and be on a plane to anywhere South of the border or Europe. there is a baggage check going in, so don't bring more than you are willing to risk getting confinscated
you can cross the Mexican border, pay a couple bribes and be on a plane to anywhere South of the border or Europe. there is a baggage check going in, so don't bring more than you are willing to risk getting confinscated
"Goods of Canadian origin are not reportable when returned to Canada."
This specifically applies to Maple Leaf coins, of either gold or silver persuasion.
Uncle Sam has his own reporting rules but, at the moment, Uncle isn't asking outbound motorists a damn thing.
Fences, drones, TSA, eventual border closure; It's not about keeping people out. No dine & dash.
Must add that I was attempting to open a checking account with Chase yesterday. There application for had 2 highly unusual differences.
1. Are you a citizen of the US? (Permanent resident was not an option - meaning to me that I count as a US citizen just by being within the USA as a green card holder - there was no box to check for Permanent Resident as before. "what countries are you a citizien in or have been a citizen in."
2. Are you related to a high govt official.
illegal aliens arent tracked, citizens are.
Number 2 is a hoot, bunnyswanson.
Sounds like an inference of drug use by a relative.
:) Perhaps it was high level (up there).
If anyone is curious, you can begin the application and then pull exit, just to see these 2 questions. In 30 years, I have never seen these on my bank appllications.
You didn't sign in as Bunny Corzine-Dimon? You may have missed out on access to ZIRP!
Mtg is with Chase and because I need a Medallion Guarantee signature to transfer funds from when I was married (RIP dear), so thought I go locally there (bank on line with a VISA corp Metabank after Chase sent me into Chexsystem in 2009 or so. I'm pretty much a loser...but an honest one!
I don't understand why US citizens are so concerned, all of a sudden so concerned? Regarding the accelerating rape of all public assets. Reason why I find it hard to understand is that US citizen has watched it happen world-wide for decades.
Now it comes home to hit.
Some of us have been concerned for a long, long time Whack. The problem is no one listens and those that do marginalize, demonize, and when all else fails calls you a racist. There is not anything I can do to change a dam thing. I just do not play the fucking debt game anymore and have not for 20 years. American for the most part are concerned with keeping up with their neighbors, watching the newest reality show and having the newest electronic gadget. Most of us worship the trhone of consumerism and it will be our undoing.
Whats worse is talking to most people around me they either get miffed, but most of the time they tell me I do not know what I am talking about. I told some co-worked three weeks ago to set their 401k's into a savings for the time being as October would be rought not one of them did it and today they were all crying the blues. NOT ME!!!
Are you suggested lime the fruit or slaked lime the akali? Both could be pretty uncomfortable.
Lime in the coconut, bitches!
You know, I think it's high time we bring out a hologram of amerika and make it dance around like Tu Pac. Then we'd all go back to sleep and dream of candy mountain
poetry
Lime in the coconut, bitches!
You know, I think it's high time we bring out a hologram of amerika and make it dance around like Tu Pac. Then we'd all go back to sleep and dream of candy mountain
Origami
"What's that?"
https://www.youtube.com/watch?v=ELZK4QySGlk
Also love the cool VIX chart -- but at first glance I thought it was the scarf I lost back in the winter of 1983 . . .
That is indeed a hella chart. Why do the big boys pay for that when they already know when the fix is in? Oh, it's for the middle class investors so they canb think they have real choice and it makes it less like gambling. Seriously, that chart would be awesome on a 100" 3D monitor, 3D glasses and some cheap blotter acid. Does it move? Change colors?
hey better sell it quick...
Let's NOT FORGET that today we had all the big egos in one spot playing pin the tail on the donkey. Did we forget that there was a power lunch today of Carney/Yellen and the gang? Testing the waters of WTF?
Maybe. OR maybe the UK/US gang who were running theri "what if" conference on low action?
Over at Mish's site, he used to say that there ws no PPT and that they did not buy stocks, nor did the Fed. I believe Mish may think different now, but back in 2008-2010 he used to tell us that that idea was bullshit. I maintain that since 2008 the Fed and the PPT has bought stocks and indexes with a passion.
Mish = Useful Idiot
Does anyone know why the dallor got hammered after the close?
Duh! The Dallor looked like a nial.
"If it pleases our Lord, I will take six of them to Your Highnesses when I depart, in order that they may learn our language."
Well whomever is responsible for that VIX chart...... wow that thing is a work of art!
Looks like the acoustic waterfall plot for a crappy music studio.
Typical modern music, all bass and treble, no mids.
you definitivly not master a fuck shit about what you're talking about in the mp3 era.
you have to die.
Do you do a lot of studio work? I spend half my time putting mids back in people's tracks for money.
Literally LOL... great first comment...
apparently they are going to haul before the libor riggers and gold fixers - from London - after those guys get axed, its anybody's guess where gold will go. I know silver will be up - but you won't be able to buy GLD or SLV at that point regardless, no markets means price freedom
After mid terms, Obola and ISIS will magically be portrayed as manageable and the market will be ready for ATHs. Iraq will let ISIS have all the worthless sand area they want, along w all the poor they must now feed. Iraq, back by Iran will destroy ISIS if they come near any valuable oil fields. Then there will be talk of breaking Iraq into 3 countries along religious lines. That's the real plan.
Steven King and his rats leaving a sinking ship?
Well, let's see... IF that were all day:
$750 bn * 60 (sec/min) * 60 (mins/hr) * 6.5 hours =
$17.55 quadrillion! Whee....!!
Is that a lot of money or not? I'm confused.
It WAS pre-2008.
It's starting to get up there but where it really gets big is the decillion. I'd give it another couple of years before I'd start worrying.
cept it was $750 Million..not Billion
Ahh, very true! My bad earns my first -1.
And I used to think I was GOOD at math...
You were 'only' off by three decimal points. Just a rounding error at the Fed.
No. He was off by Three Orders of Magnitude.
But $17.5 Trillion (the correct figure) just, coincidentally, happens to be the size of US National Debt.
Hmmm...Good exposure DoChen...Good exposure.
Or perhaps the $17.5 trillion dollars is what the perpetrators will need at the next TARP, when their bogus paper wealth inevitably disappear.
CD was right... merely a rounding error. Besides, it's all 0s and 1s in the Fed computers anyhow. Ain't real money.
DoChenRollingBearing,
Wow! You're gone longer than I thought.
So, now you have some catch up to do…. And some questions to answer; such as:
What were you thinking leaving Zero Hedge when things are about to explode?
No way the market is rigged. I'm going to go buy some stocks right away.
Come on in, the water is fine...
Was it the Russians?
Could be. If it was I would be willing to bet it has somethign to do with the Russian/Zimbabwe platinum deal that Obombya is pissing on about. New sanctions, now against Zim and Rus will go in full effect.
American forgeign policy is starting to look like a mentally retarded kid throwing a fit. No offense to the mentally retarded here.
geez, Yan Chou just went down the hall to pee...he was gonna do the ramp when he got back....
Margin call....
Somebody wants out.
I think somone wanted some value before the margins start getting called in.
Great movie.
Is Gross short?
Let the good times roll.
The overnight planning for the stampede is palpable.
Yes.
These markets will bleed out like they have ebola this week.
I hope so. Then it's onto stealing retirement accounts to keep the bond market propped up after that bubble gets further inflated by the flight to "safety." After that, we get to watch that bubble get popped one way or another, and the federal government will, through virtue of no funding, become much less relevant. It'll be a dangerous roller coaster ride, but I'd rather just get it over with.
The oil pros say we'll be knocking out 12 million barells a day before this production curve peaks.
That's way more than the USA will ever need save for heating and even that is questionable given the truly stupendous production of natural gas right now.
I remain long NASA. As these energy prices collapse the cost of throwing a load into outer space drops massively.
We used almost 19 million/day in 2011. We were also a net natural gas importer in 2013. All of the talk about energy independence is sunshine and hype.
It is if you are talking in terms strictly relating to oil. According to a study done by Purdue Universities Agricultural Department. If 'Merika used just 10% of its Agricultural land for hemp production, we could fuel every single car, truck, semi and train at current consumption levels just by switching to hemp oil based fuels. But, well, its very cheap, the MIC would lose Trillions of dollars and the oil companies wouldnt be worth nearly what they are now if everyone could either make their own fuel or buy American made hemp based fuels.
Kinda makes you wish there was a time machine so you could go back and kill William Randolph Hurst, dont it?
And I used to think those seeds were a nuisance....
"And I used to think those seeds were a nuisance"
Well they weren't a nuisance back when we had double album LP's :{
I can remember doing just that. If you did not have music on you could hear them pinging one by one into the trash. Except the good ones that were kept for growing.
I always liked the way they popped.
Don't forget to kill DuPont while you're back there.
Now that I think about it, knocking off Prescott Bush and Averil Harriman would be a good idea too. And whichever Shiff was around at that time. And Warburg.
Wouldnt have to. The Hydra dies if you can cut out its heart.
not everything imported by US is used by US... because refinery exports... that is all
hydro carbon chains
and hope...
Long NASA? Thanks for info, Disabled Vet! I wasn't aware that NASA started using gasoline to boost payloads into space.
Nope. The BIG egos pn the block were busy today. Tonight they do cocktails and caviar and hit the phones...This downdraft will not last. (by the way I hope I am wrong. I really have enjoyed today in chart porn/fantasy land.)
Just like this morning tho...it would be amazing if the new Chicago PPteam puts together a positive futures before the market open tomorrow. If futures stay down all night and never recover then its Terrible Tuesday tomorrow.
The liquidity (read: buy orders) didn't disappear, it was just temporarily absorbed by an overwhelming number of sell orders. Somewhere, a hedge fund just died.
well put
I can almost hear 1000 tiny violins playing, My Heart Bleeds...
Funny....i thought it was bangalore equity telling somone / anyone to LISTEN to him.
Little Bangalore here....its cute when youre 3 years old.
https://www.youtube.com/watch?v=aFYsJYPye94
+1
RIPS
Listen, Listen, Listen...I done arguing with you Bangalore!
Thanks for the laugh of the day......
We all need a laugh sometimes.
Cheers.
RIPS
I hear dominoes....
yeah well that is what happens in a market.. you sell and if your size is bigger vs current bid stack.. you crush the bid.. market is thin. we all know this.. maybe it was a ghetto order but market looked like shyt before that order was even dumped.. if were short ahead of it.. you did great.. everything is not nefarious
It being a holdiay and all, I think the PPT had the day off. Tomorrow, things will all be back to "normal."
PPT is a ridiculous concept. This will never work. Total fantasy.
Like they will soak up all the equity at once?
I call BS on this idea.
Bloomberg even got in on the joke today...
Yeah OK but what about all the idiots conferencing in Washington? about how to protect against 2008? Maybe they just let some little bit of free market float into the mix. And someone knew it.
P.S. I am self confessed idiot. But I know how to connect a few dots.
If you are the house you can keep playing becasue you are the one issuing chips. Only matters if everyone notices that they are broke, their fellow gamblers are broke, and you own everything.
Let's imagine a 1987 style crash.
Would they close the US markets during the session after -10% and then start buying equities directly? Are they fast enough? Can they create enough ones and zeros on their screens? The crash would continue in Asia and Europe.
Maybe it's me, but I can't grasp the concept of a plunge protection team.
It was fun to watch cause even the PPT didn't know WTF to do and tried to clean up the mess but FAILED!
Well I guess ole Leatherface LeGrinch wasn't kidding when she demanded moar liquidity ;-)
That names going to stick, LOL !!!