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Algo Liftathon Saves The Day But Financials Falter
ES (the e-mini S&P 500 futures contract) closed the day session almost perfectly at its VWAP (volume-weighted average price) as the last 45 minutes of the day saw a relatively 'cheap' equity market (compared to CONTEXT broad risk assets) rally out of its tight post-Europe's-close range. There was heavy volume as we got close to VWAP and little ability to push through it and the fact that the major financials (stocks or CDS) did not really participate in the XLF's modest pull at the same time also suggests it was not performance chasing as higher beta was not outperforming that much. Stocks and credit stayed much more in sync than in recent days but we note that the seemingly increasingly important HYG did not sell off as much in the middle of the day and markets pulled back to it into the close. The weakness in TSYs and steepening of the curve post Europe, as well as some recovery in commodities helped support equities as EURUSD did not lose much more ground in the afternoon (even though SEK did). After outperforming all day, Silver rallied back in line with Copper and Gold's 2.5-3% down day while Oil clung desperately to the safety of strengthening USD -1.3% vs DXY's +1.2%.
The light blue line is the VWAP which is often used as an anchoring price for institutional programs (and often part of Algo models for trade allocation) and ES's close exactly at it suggests the machines were very hard at work in that last hour trying to offer better entry levels for institutional selling programs. The relative performance of CONTEXT (the broad risk basket indicator highlighted in dark blue) suggested equities had overshot to the downside modestly as the TSY selloff and Commodity stability/rally of the afternoon did not support further downside in stocks.
While there were plenty of outsized moves among risk assets today, the commodity complex - specifically the metals were very active. The stability of prices though this afternoon is suggestive of this being more a European liquidation event as opposed to anything more serious for now but we do note that these were multi-week large-size moves. The anchoring of the three metals into the close is also quite surprising given their earlier dispersion but it seemed Oil was also very comfortable just tracking lower on USD strength all day.
Credit and equity indices traded largely tick for tick with credit underperforming modestly throughthe European hours and very minimally outperforming into the close. HYG evidently was in a world of its own today again - not selling off much and not rallying into the close at all.
Obviously the main losses on stocks today were pre-market (gap-down open) though most sectors (all except Consumer Discertionary) ended below their opening levels. Financials and Energy were the worst performing sectors of the day -2.4% or so with the latter performing much better after a midday meltdown and the former getting some help in the last 45minutes (XLF was the best performing sector of the last 45mins). However, it was not all snowdrops and unicorns as the major financials did not budge much as we note Morgan Stanley is now down over 12% from its late Wednesday spike high close shenanigans, followed by Citi -9.1% from the same time. The major financials CDS also continue to leak wider.
All-in-all, the lowest Composite volume day since Thanksgiving Friday saw stocks stagnant in a narrow range still clinging to the edge of the 11/28 overnight global bailout rally cliff with only a late day algo stuffing keeping us from taking one more step. Europe's dismal performance and credit and financial underperformance has not quite taken hold over here yet though it is starting to and if we see another shock day in markets (and HYG sees outflows) then this move could get some momentum behind it.
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"Algo Liftathon" ... LOL!!!
Goddamned I love this site. My physical gold may go down to a paper price of $1 and then I may sell it for $10,000 only to spend the next 10 years trying to get around a special 90% "speculator scum tax", but I'll always have Tyler
BUy programs hit on the last 30 min of cash. every day this happens.
screw algo's look at CHICKS - http://hedge.ly/gFWVSm
And so it begins.
Thousands of disenfranchised libyans protest in Benghazi against the puppet regime who murdered Qadaffi, destroyed the country's infrastructure, murdered thousands of civilians, and basically turned Libya back into a colony of the european oligarchs.
http://www.irishtimes.com/newspaper/breaking/2011/1212/breaking51.html
Hedge is fast assuming the mantle recently shed by Money McBags...
Here's to the greater glory of the feminine form !
or do the stupid thing and go long ahead of it...to be honest guys and gals...easy money is to be made when the market sells off and then sits at its lows for too long. we all know its no FUN but just Buy The Fucking Dip...markets are suppose to correct...:)
gold black market coming soon, bitchez
You said it. As one coming from a Banana Republic country, when the laws become ridiculous and corruption rampant, you will see the underground economy come to life. Capitalism imposes itself at the end. I, for one, refuse to send a 1099 for a PM sale. Gold remains steady but Fiat devalues. Do I get a Tax deduction for the capital loss? --> NO. On the contrary we get taxed. Talk about adding insult to injury.
Wars are not been fraught with weapons anymore. Finance is the battle ground. You can achieve more with your money and/or your labor than you can with your bullets.
The liftathon commences! On the good news Gold was a bargain today :)
http://silverliberationarmy.blogspot.com/
been waiting for two day of solid sell-offs. I can't break thru in making a solid profit. Tomorrow down again and my trading account will look beefy.
yep. two days of red has been pretty fucking elusive since october (minus TG week). Keep falling for the same fucking trick because I can't bring myself to close on red day #1. i usually buy more puts and lose profits+ on the subseuent green day.
you seem...familiar to me.
Can anyone comment why the VIX closed in the red?
<=== no
<=== the algos got tired?
L0L!!!
Most likely due to heavy put selling late in the day and a tight trading range starting around noon, which is about when the vix topped for the day.
To ensure that those trying to play the short side of this market by buying puts (as opposed to selling calls) get well and truly fucked over. Rigged game.
The steep drop after 3:00 p.m. in the volatility index, strangely enough, indicates volatility.
you can always trade option volatility on a volatility index that measures the volatility of a basket of every volatile equity instrument of this strange world. or......options traders dont have the balls to trade futures.
I heard something about hedgies selling the shit out of options to try and make up for their lack of performance..... or just to fuck you and me over.
closing bell cnbc...hedgies are bleeding. you wont get fucked if your on the right side.
Machines? If HFTs were buying in at the last moment on nothing volume... then that is bulltrap for momos. Commodities were slaughtered! HFTs ping pong off risk FX trades/commodities currencies. It wasn't a dramatic meltup by any standard. The Dow and S&P are looking very unstable end yr. In fact frightenly so, this market should panic hard if HFTs tune their micro processes (info mining) and realize that commodities are crashing. New lows, maybe before end yr...Maybe...
Also anyone waiting for the Shanghai to break 2000!!! F*ck yeah in 2012! China goes silly and starts buying lotsa of USDs again. Chinese equities are done. That should freak out the HFTs...
Amen to that... Shanghai makes a new 52 week low every few weeks
yeah...let the HFTs chew into the end yr. i think they will give us a warm up panic prior to the total meltdown in 2012. on china, busts that low...interesting to see if the print jobs globally will inflate stocks. they may not.
That's a fine recap there, fella.
those soon to be in hell globalists, where they will feel quite at home, are satanists! newt g. is one of them people! spread the word, if they've got necks, we hang'em! it was no fluke the market low in 2009 was at 666. WAKE UP PEOPLE!, THEY'RE BUYING UP ALL THE DEBT, NO MATTER THE PRICE, AND THEN, TO DEMAND OUR SOULS IN PAYMENT!!! we will rise up, armies will turn their guns towards the beasts, we will take your gold, your properties, we will make the laws, and cast ye all into eternal damnation! that goes for all politicians too! well, almost all! LET'S ROLL AND HANG!!!
The daily 3:00 vvvvvvrrrrrrrooooooom factor...
ao I got roundly booed for my post friday saaying it was a joke, and a good place to reenter shorts. besides I could find no reason for the rally at that point, because he hadn't hit any real trend up lines. we maybe just about there today as the europ ddropped to it's trend line/ I expect a bounce. But I do wonder what the traders on this place are thinking and what charting programs they were using. the only reason for the bounce fiday was it hit on the weekly bottom. Besides you fools. in early and over night hours they were saying the s and p was down 2%., if the europeans bought that low, then we were stupid enough to rampy it up all day with another gain of 2%, it means these fuckers earned a gain of 4% essentially overnight. Only a fool wouldn't sell that. If you haven't figured it out yet, the role of the united states market is to ramp up stocks to the europeans and asian can seel then at gains. you see this over and over and over again. it's disgusting, but if you wartch, can you can usually tell by the last hour qwhat is going to happen the next day. also do the trends lines. I suggest having an inverse fund and trading it like it was something going up, and rebuying at trend. It is also disgusting that as we go lower and lower and lower we can['t get a number of days in a row down, but we sure can ramp up a number of days to sell to a lower level. this way the sheep always get screwed. How the markets ever ended up being this mess I'll never know.
chill man...eurapenis japonyoknees its all the same. if your in the market you have no face, and no time zone. your either in or your out...i bet their are more asian traders during early morning US hours than during the opening session.. truth is...if you find something test it. trade it... dont hesitate... i did for a while and i beat myself up for being so spot on sometimes it made me sick... check my post on the china copper shit. i was weirded out becasue i saw cocoa bottoming at just under 2000 yesterday..today it rallied 10%...why didnt i trade it? i dont know shit about cocao or the margins or why and how it moves but i stumbled over something that looked good and i balked... same thing happened with wanting to short gold at 1899 on a sunday afternoon i was golfing, not paying attention, and get nailed by a golf ball...never happend before?just like 1900 gold... nest 48 hours wicked selloff 100 points a day...trade man. trade.
8th RULE: If this is your first night at FIGHT CLUB, you HAVE to fight.
FED "Liftation" I think that sound better, watch for FED liftation starting around 4:00 am tomorrow pre market. One can almost set ones watch by it.
Excellent read, Canada Goose Expedition CoatsI just passed this onto a colleague who was doing a little research on that. Canada Goose Yorkville ParkaAnd he actually bought me lunch because I found it for him smile So let me rephrase that: Canada Goose Chilliwack Bom ParkaThanks for lunch!
I raise to 'EuroZonoImplodathon'
to counter
'Liftathon'....
--please show your hands.