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Why The Market Kept Breaking Yesterday
When markets broke on Wednesday, XIV soared, stocks followed and the volumeless levitation was praised by all as evidence that the world was once again fixed. Yesterday we also saw NYSE Euronext 'break' into the European melt-up close, and later that day, as Ebola headlines hit, the market once again broke numerous times with various exchanges declaring self-help against one another as stocks tumbled on heavy volume. If you are wondering how it is that "the great stock markets in the world" can break so often (and be so ignored by financial media), Nanex exposes the act... as massive quote spamming yesterday sent OPRA to full capacity (broke the efficient flow of data in markets) 13 times...
As Nanex's Eric Hunsader explains each peak over 10 milloin quotes per second - ocurring after a sale of 1025 S&P 500 e-mini contracts - temporarily maxed capacity at OPRA and broke markets... (and a 15 point insta-plunge occurred)
and here are the major stocks reacting to the order floods...
Source: Nanex @NanexLLC
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And here is why ISE broke yesterday - Rule 720A
In other words, someone/thing was sending enough fake orders that ISE invoked Rule 720A and shut the system down.
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LOL, I have a feeling that "verifiable disruptions and malfunctions" are about to become more common.
So reminds me of the eventual end/outcome to a friendly game of monopoly...
DDOS... who is in charge of fixing / preventing these?
My son, stuck in a 401k(b) retirement plan where they could "invest freely" in ETFs told me that ~50% of the funds are blocked right now. They can sell, but they cannot buy the ETF.
Can anyone else confirm? this seems like a big red flag that is consistent with all this talk of a "lack of liquidity"...
This is an example of deliberate financial terrorism.
Many of the ETFs are commodity-related. There might be another reason why they don't want anybody buying that dip....
Could be a tell, that, or my tin-foil hat is on too tight. Sucks either way.
Back in the late nineties, before the crash, I actually moved a small amount of money in a 401k to a money market fund. About six weeks later, after the crash, Aetna called me and told that the transfer never took placed due to a technicality/glitch or something, then asked me if I still wanted the transfer.
And that is how the system works! The 401k system is just OPM for the banksters to play with. When shit hits the fan, the 401k will get stuck holding the bag. They control all the choices!
I have an account with my current employer, but I set it up and leave it in money market. I don't mind losing a few percent per annum, it beats all of nothing! But, I suspect they will force me out one day, one way or the other, probably into shitty govy bonds at the bond peak. I
Regards,
Cooter
Even though Oprah lost weight, she always goes back to Full Capacity.
I still don't understand why a tax on transactions couldn't fix this. Let's say 0.0001 per quote request or cancelled order. Oh no, liquidity would dry up! Yeah, and what benefit does 1M quotes per second or 10,000 cancelled orders have for liquidity?
It's like bountiful cleavage on display. You can look, but you sure as hell can't touch.
Peak HFT
In other words, someone/thing was sending enough fake orders that ISE invoked Rule 720A and shut the system down.
fake market
fake economy
fake orders
uh, i see no problem ...
Those HFT algo's care, HAL 9000 cares, he just can't open the pod bay door.
http://en.wikipedia.org/wiki/Denial-of-service_attack
Good ol DOS attack. Here's a fun fact: you can crash any Counter-Strike (game) server by spamming thousands of tiny UDP requests to port 27015
Streicher and the unanimous sentence of DEATH BY HANGING.
The goal is pretty simply: create massive aggregations of wealth concentration that can operate as State within the State.
Ford I'd getting crushed today though so it would appear the plan is failing. Need real money to make these things...and Bernanke Bucks only creates debt that has to be inflated away.
With the dollar now surging and commodities collapsing...
"Malfunctions" that's rich..
Mommy, can I get one of those quote stuffung things for Christmas? I'm bored with Xbox.
What will happen when somone places 10 million fake orders on Amazon.com? Or I want a want a quote for 10 billion Latte at starbucks.
There are real people behind those entities/websites. Realistic limits to orders, outside of that they are happy to take your money. The difference between a real market and a fake market.
The planet is about to re-learn why it is so dangerous to print endless paper/digital receipts for claims on limited goods and services of real value.
Fake Orders, Fake Recovery, everything is fake...