This Is What Happens When A Buying Algo Gets Excited

Tyler Durden's picture

At 13:21:15 this afternoon, as the Dow Transports was pushing towards its record highs (for the first time in 2 years), S&P futures and the SPY ETF suddenly exploded in volume and ramped higher.

 

In those few seconds 2 million SPY shares went through (around $450 million)...

 

and 32,000 e-mini contracts (around $3.5 billion notional) screamed through the markets...

Some context... That's a record!

Nothing to see here, move along.

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buzzsaw99's picture

Nothing to see here.

Rainman's picture

now we've even run out of dips to buy

Hal n back's picture

my bad, I meant to buy 200 spy

The Saint's picture
The Saint (not verified) Hal n back Dec 7, 2016 4:58 PM

Soros covering his short position?

Remember October? When Billionares say SELL it is time to load up on the BUY side.

 

 

spanish inquisition's picture

Plenty of dips are still buying.

overbet's picture

FED wants to push it as high as can for Obozo so it crashes harder for Trump

PlayMoney's picture

No dips? Just buy the buy. Just BUY damnit and don't ask or think.

yogibear's picture

Limited downside as per design by the Federal Reserve.

kavaron's picture

How do you know it is not BUY STOP orders from the sheeple? My guess is just that, no algo.

liquid150's picture

It could be anything, from retail trader stop orders to a big institution making a big position adjustment.

I seriously don't think Tyler understands markets. I've never seen any evidence that he does. Any time the market moves quickly, it's obviously the algos and the manipulation to blame. It couldn't possibly just be human irrationality.

PirateOfBaltimore's picture

Humans are generally smart enough not to make moves so large they sway markets if they are attempting to accumulate a position.  Because it costs more to do so.

liquid150's picture

I'm not sure that's quite correct. Humans are generally not smart in the market. I agree that it's less likely to be a big institution for your reasons mentioned, but it's simply not true that humans are "smart enough" to not make large moves. Large moves have been happening in markets since markets were invented, and it's simply not possible for algos to drive all large moves if algos didn't exist.

Also, sometimes a big institution has no choice but to move the market. It's not a question of "wants to," but rather whether or not it's possible to actually scale in without having an impact.

Sometimes it's just not possible.

bintercorp's picture

liquid150 r u an algo m8?

Id fight Gandhi's picture

Retail and human interactions are not making these purchases.

 

You're embarrassing yourself.

liquid150's picture

Your argument is so compelling!

"Stop embarassing yourself."

PlayMoney's picture

That much volume by sheeple in a mere second or 2? I don't think so Tim.

RagaMuffin's picture

I would pay to see Trump nominate Hunsader for the SEC. The heart attacks from Chicago to NY to citadel would be EPIC

buzzsaw99's picture

who cares? trump is an asshole.

King Tut's picture
King Tut (not verified) buzzsaw99 Dec 7, 2016 4:16 PM

Heavy volume on downvoting for badmouthing Most Glorious Leader Trump

buzzsaw99's picture

+1 i plan to downvote myself after i post this reply. bad mutant! now get in my belly! [/fat bastard]

RagaMuffin's picture

"Most Glorious Leader Trump" = Muggle ?

Bill of Rights's picture

Hey Stupid, hows that Oil trade lmfao!

RagaMuffin's picture

probably true, but still, imagine alll those algos squealing and no one can hear them beccause they are .. well... electrons

Bill of Rights's picture

That make two of you, only difference here is your a broke asshole Trumps not.

NugginFuts's picture

Ok, I'm convinced. We don't have a market any more. 

davinci7_gis's picture

I am thinking this is definitely NOT the time to start going from cash to equities.

Kaiser Sousa's picture

markets?

hilarious...

i cant wait for the "technical" explanation for this fraudulent fucking Fraud Market activity by our resident collective of "super genius traders" later today...

u know their names...

DEATH TO THE FUCKING MONEYCHANGERS...

ps: how all ya'll Donald Chump'Ya fans liking him now?????

sucka's...

buzzsaw99's picture

it would be funny if in that microsecond icahn et al gave up the ghost.

jamesmmu's picture

Tell me who dare to short this out of control bull market, its crazzzyyyy!

Snaffew's picture

both hands raised...i'm a fool.  Expecting a 15 point selloff in the S&P tomorrow to take it back down to 2230 after todays close.

headfake's picture

i did got massacred ... dunno what to say ...words fail me. Thers nothing to prepare you for this type of bs move

yogibear's picture

You are 100 percent correct with that statement.

thismarketisrigged's picture

janet yellen must have had a massive buy order in.

 

fucking bitch

Dragon HAwk's picture

Any Idiot can make a mistake, to really screw up you need a computer.

Snaffew's picture

I love the WTF's with the arrows...makes me laugh every time.

WayneHinds's picture

12/07/2016 - Day the DJIA topped.  Dow has finally hit my number.  I calculated this number back in 1999 but i was smarter back then.

Dow going to now begin its 38% to 62% drop.

 

Clock Crasher's picture

equities (hyper)inflation almost exhausted

long way down

printing money to buy stocks

never was going to end well

venturen's picture

The Neverland Market...and then one day 50% drop!

Seasmoke's picture

I just ask that I am alive and healthy to see it.

Not Goldman Sachs's picture

Nope. Circuit breakers. 10% max before ppt kicks in overdrive. Neverland.

bahaar's picture

All I can say is we who trusted sites like zero hedge LOST.  Big time.

 

Clock Crasher's picture

The individual places trades (if that is what you are referring to)

every fundamental piece of ZH finance reporting is True

happens that any market reaction that was positively correlated to fundamentals was pure coincidence

This market is 110% driven by printed money, insider trading, algos, HFTs, big fat sharks, dark pools, foriegn countries, central bank intervention, foward guidance and missallocation of pensions et al nation wide to name a few.

King Tut's picture
King Tut (not verified) bahaar Dec 7, 2016 4:26 PM

ZH has never given investing advice. It's more like Schadenfreude Hedge.

Clock Crasher's picture

even if they did.. the individual chooses to or not to apply due diligence

I do sympathize however

Andy hoffman and the extreme gold-bugs are right

100% phyz

0% equities/anything digital

by the time these counter bets pay off the brokerages will have collapsed.  If they dont you can not wire out of brokerage into a failed bank.  If not the bank will freeze incoming deposits to redirect to 150 year ZIRP bonds.

you lose

or you win moral victory before losing by default

when this is over and the S&P is trading down in the double digits no-one will touch stocks for a generation maybe two and there will be expressions of speech regarding Americans who bought stocks thinking everything was legit.