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Low Liquidity Alert
For anyone trying to trade today, this post is moot. For everyone else, when less than 1K ES contracts take out not 1, not 2, not 3 but 4 levels of order book depth...
11:01:50 - just 768 eMini contracts took out 4 levels of depth #ES_F
— Eric Scott Hunsader (@nanexllc) December 15, 2014
Then one better pray that Waddell and Reed does not sneeze, and certainly not sell (or, gasp, short) anything in size or else...
eMini liquidity really sucking wind today (black line) $ES_F $SPY pic.twitter.com/ZQzTzLe624
— Eric Scott Hunsader (@nanexllc) December 15, 2014
Outraged by this outcome in a world in which billions of algos supposedly do nothing but "provide liquidity"? Then just dial 1-800-VIRTU.
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and this is bad for who?
I'm buying Spirograph.
On several occassions today I saw less than 200 take out 4 price levels of the order book. That's fkg thin...like Calista Flockhart thin!
Algo liquidity = plebian lube.
I feel a great disturbance in the Force, as if millions of Algos suddenly cried out in terror, and were suddenly silenced. I feel something terrible has happened.
Hence the reason why this bitch will vaporize when TPTB finally pull the plug.
Agreed. It won't be a matter of "at what price?", there simply won't be anyone on the other side to trade with. Just "gone".
That's when the HFT platforms go "bidless" exactly like they did in 2008.
That means a blank screen for those actually paying attention.
Jammie D's boys on Capitol Hill just fixed that problem for the banks, but not you.
A Christmas miracle we could all hope for.....
The Plunge protection team won't allow that.
They won't be there. Mark my words, this won't end until there are thousands of points wiped out before you can blink.
The billion dollar question is 'when'? er... trillion dollar
The circuit breakers will trip in milliseconds this time.
The final market crash is going to be a staircase down, with the market open less than 10 seconds (maybe less than one) each day until it's over.
Yep and it'll be a joy to watch.....
Doesn't even matter. Just reverse the trades on each exchange without appeal which best serves the money-masters and robs you of any profit you make. Already did that in 2012 with NASDAQ.
There going to shutter markets ("temporarily" of course, as in Cyprus' banks) before it reaches that level of drop
Like in the movies when the front of the car is hanging over a cliff- "Don't anybody move an inch! Don't even breathe!"
And then a big seagull decides to land on the engine hood?
who the hell would try to sell 768 e-minis this time of year? it's only a $15T market cap index for god's sake
Same reason the JGB secondary market goes days without a trade despite having 47 quadrillion Yen in notional securities value (I made that number up but it's probably about right) and is allegedly the second most liquid market in the world, aside from USTs.
It's the tail that wags the dog.
that argument makes no sense. you can sell as many jgb as you can lay your hands to without moving the price one iota, so it IS LIQUID.
To sell someone must buy and we're gonna run out of someone's sooner or later.
https://www.google.com/search?q=empty+sports+stadiums&biw=1600&bih=829&t...
Water, water everywhere, but not a drop to drink!
That orange, purple and green chart means feck all to me but I do believe you that liquidity is non existant.
Each line left to right is a day of trading 10:00, 10:30, 11:00 etc along the bottom. You can see the color code legend on the right edge. Purple is 1/2010, red is 12/2014, black is today.
Bottom to top is trades per second.
TY fuu, it took me a minute or two but it made sense after reading what you said. It suddenly hit me "holy shit yea".
Markets are now so efficient we don't even need to actually trade anything.
No point. Everything is already priced in.
:P
What chart? Ghostery correctly blocks crap from Google. Next time, don't include a chart located on an NSA server.
chart is https://pbs.twimg.com/media/B46IuCuIEAADVrd.png - not google - no reason ghostery should block this. Noscript let it through properly.
the MAUL is opening up. who wants to go shopping? hmmm??
Green by 3:30. Any takers?
Normally I would agree with you, but somehow this feels different. Of course being wrong about market direction is what I'm best at.
Lot of panic to overcome for that, Mortimer (or is it Randolph?). DJIA down 200 points from staged pre-market. That, following a -315 on Friday.
Lot of players taking close inventory of what they can liquidate to cover margins. Leverage is a great as long as the levered thing goes up.
VIX is about to surge higher...We just Hindenburg'ed some folks.
This is the thing ALGO wet dreams are made of.... They can stick it anywhere they want it.... Wonder who bought all that SPOs the other day...... they gotta be crapping...
I call this "vapor piss".
I'm lmfao at those idiot weekend warrior traders on Bloomturd threads that were calling for BTFD this weekend. I hope they ride the ship all the way down.
Fucking rookies.
I take it BTFD'ers are going all in on this dip. If it works they make another 10 percent but if it doesn't they lose everything. Risk/reward...ahh who cares, it works every time.
WE desiccated some folks