Berserk, Broken Rampathon Algo "Buys" The S&P At 2,130

Tyler Durden's picture

4 seconds before the close, one super-bullish algorithm exuberantly bought a massive $200 million worth of the S&P 500 ETF up to a 2,130 level on the index in one second... and no - it was not a fat finger!! It was 1,147 trades! Now who do we know that is an 'expert' in ETF trading?

With 4 seconds to go in today's "market" day-session, this happened:

Source: NanexLLC

 

There's only one man "expert" enough in the use of ETFs to handle a job like that. From his profile (link):

 

But have no fear... those trades will be DK'd asap.

  • NASDAQ ISSUES E-MAILED STATEMENT ON 'SPY' TRADES
  • POTENTIALLY ERRONEOUS `SPY' TRANSACTIONS BEING PROBED
  • TRANSACTIONS WERE EXECUTED BETWEEN 15:59:00-16:00:00 ET

Or maybe not: ALL TRADES IN 'SPY' WILL STAND


Probably because the Fed is willing to "eat" the losses rather than explain why it buys SPY, via Citadel, on DirectEdge.

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Tsar Pointless's picture

Rational, considering this - ahem - market.

Groundhog Day's picture

If it was GS, we'll have a do over, if not.....another small firm out of business tomorrow

aPlayer's picture

Probably somebody connected with Tickmill

Divided States of America's picture

Good that I got a good glance of Kevin Henry's mug on LinkedIn (thx Tyler)...Now when this house of cards comes crashing down, if I see this fucker in the public, for every point that he helped bid up in the S&P500, I will give him a good one in his face.

KnuckleDragger-X's picture

HFT shotgun blasting away in a small room, baseball bat beating on a city street...semms fair to me... :-)

BuddyEffed's picture

Was that trade possibly designed to pressure short coverings?

rayban's picture

Clearly a manipulative move given the derivatives expiry tomorrow at the open.

And the SEC has nothing to say....

What a sad joke.

Banker Buster's picture

marsellus wallace will take care of that SPY manipulation with some hard pipe hitting nggas to go to work on the holmes here.  Put the gimp on his woman while he does that.  

 

Someone fire that manipulating little whore over there.  In 5 years he'll be giving an interview on TV during a documentary on how the fed "accidentally" brought down the financial system and he'll be almost in tears saying "I thought I was doing good, I thought I was helping America, they told me to do it, but I don't remember who actually told me to do things like spend $200 mil in 1 second buying the top of the market, I'm sorrrrrryyyyyyyy (cue the tear)" and cut. 

Note this though, he'll be thrown under the bus A.S.A.P. if shit does hit the fan and the fed is anywhere close to blame.  The middle guy without any pull always gets thrown to the wolves.  

Stoploss's picture

Kevin had to call some folks.

Al Huxley's picture

So they're out of the money for a day and a half, big fucking deal.  By Wednesday of next week they'll be deep in the black and laughing all the way to the bank.

Your guess is as good as mine's picture

All it'd take would be a little over a 1% increase. maybe they wanted to buy a big amount and the only way to do othat was pay more. No biggie if you've got many billions to play with.

hedgeless_horseman's picture

 

 

exuberantly bought a massive $200 million worth of the S&P 500 ETF up to a 2,130 level on the index

His name was Janet Yellen.

Haus-Targaryen's picture

She likely has a massive penis.  

Who is on top

Yellen or Hillary?  

Just Take It All's picture

Hillary.  Just sayin', the bitch has balls.  But I can picture Yellen in one of them leather outfits with a whip, probably riding Greenspan, to the tune "Private Dancer".

Al Huxley's picture

Thanks a lot.  I was already feeling a little naseous and you just pushed me over the edge.

KnuckleDragger-X's picture

Once again out comes the brain bleach to get that image out of my head.

Philo Beddoe's picture

No point shorting the pig. Disgust and contempt are free. 

El Oregonian's picture

"like moths to a flame"

Likely Behemoths to blame.

Fixed.


Frank N. Beans's picture

We REALLY REALLY REALLY need to audit the Fed.

SickDollar's picture

 

 That my friend Gringo will never happen until the tribe is not in charge ( by then you  wont need to audit)

 

Philo Beddoe's picture

No problem. However, all internal e mails have been erased for some reason. All paper records were destroyed in a tragic blimp accident.  Here are the keys...knock yourself out. 

waterwitch's picture

Seems to me like the FED needs a good HACK job.  How about it N. Korea?

ebworthen's picture

Buy high, sell low - especially when taxpayers are on the hook.

NDXTrader's picture

At least we know the number the algos are targeting by year end on the S&P

Dungholio's picture

So has it been written, so it shall be..

chart_gazer's picture

bingo -- traders mark, see them often, normally not this brazen. there are no cops ladies and gentlemen.

debtor of last resort's picture

aka the Yellen boner algo. Jeeeezus what the fuck?

John Law Lives's picture

If this was someone that TPTB (i.e. Goldman) care about (e.g. Goldman), perhaps the trades will be nullified.  Otherwise, too bad.

Baby Eating Dingo22's picture

With taxpayers now backstopping everything, why stop buying @ $200 million?

 

 

SpanishGoop's picture

I don't want to backstop this one, this looks like a stupid trade.

I decline.

 

Al Huxley's picture

Nobody asked you what you want, now open your fucking wallet.  Maybe there's a cool new app for your smart phone that will take some of the sting away.

hedgeless_horseman's picture

 

 

The sneaky thing about debasing the currency by counterfeiting is that they don't need to get anyone to open their wallets.

The third option is for the Federal Reserve to create credit to pay the bills Congress runs up. Nobody objects, and most Members hope that deficits don't really matter if the Fed accommodates Congress by creating more money. Besides, interest payments to the Fed are lower than they would be if funds were borrowed from the public, and payments can be delayed indefinitely merely by creating more credit out of thin air to buy U.S. treasuries. No need to soak the rich. A good deal, it seems, for everyone. But is it?

 

The “tax” is paid when prices rise as the result of a depreciating dollar. Savers and those living on fixed or low incomes are hardest hit as the cost of living rises. Low- and middle-incomes families suffer the most as they struggle to make ends meet while wealth is literally transferred from the middle class to the wealthy. Government officials stick to their claim that no significant inflation exists, even as certain necessary costs are skyrocketing and incomes are stagnating.

 

The transfer of wealth comes as savers and fixed-income families lose purchasing power, large banks benefit, and corporations receive plush contracts from the government — as is the case with military contractors. These companies use the newly printed money before it circulates, while the middle class is forced to accept it at face value later on. This becomes a huge hidden tax on the middle class, many of whom never object to government spending in hopes that the political promises will be fulfilled and they will receive some of the goodies. But surprise — it doesn't happen. The result instead is higher prices for prescription drugs, energy, and other necessities. The freebies never come.

 

 

http://archive.lewrockwell.com/paul/paul334.html

VAD's picture

Sorry, you only have choices in a free country.

SpanishGoop's picture

What does that algo know that we don't know ?

 

Bell's 2 hearted's picture

maybe got wind of another euro central bank about to go NIRP?

DeadFred's picture

It knows it has infinite money in its account and you don't

Just Take It All's picture

Fantastic!  If the market cannot go down the 80% it deserves to go down, then just jam it to the moon, that is almost as good.  Either way the farce is revealed.

Lax Accounting's picture

Who cares those shares will be in the money in a couple days at this rate

yogibear's picture

It's the BTFD scenario. Been true for more 5 years.

The Federal Reserve has to keep juicing the market. 

Jethro's picture

Technically, isn't the Fed in the "Buy The Fucking Everything" market these days?

Rubbish's picture

Gold is doing well considering all the static.  Soon?

 

Gold Bitchez....I pick up pennies

razorthin's picture

And with $Amerika due for a stumble, maybe has some legs.

VAD's picture

BTFYB "Buy The Fucking Yellen Boner"

SickDollar's picture

 

 

Q: What new chapter is S&P forecasting for the American Economy? A: Chapter 11 Q: Why did the man think he saw a ghost on Halloween? A: A kid dressed up as a 401 (K) Q: Why does President Obama think its good that gas prices have fallen? A: Because now people can afford to drive the cars they're living in!


it's a big club and you ain't in it

ultimate warrior's picture

Efficient markets. Move along.