Broken Market Chronicles: Algos Gone Autosell Wild - Video Explanation Of What Happened

Tyler Durden's picture

Still scratching your head over what happened this morning (this would be everyone at the SEC but not their porn webstream vendors - even they by now realize just how broken the market is)? Don't be  - courtesy of Dennis Dick and Premarket Info, here is a 20 minute video explanation parsing the tape and showing precisely what happened that impacted nearly 150 stocks.

In summary:

  • Rogue algo strikes number of stocks: up to 148 symbols impacted
  • WFC preferred security JWF trades 4.9MM shares, and trades down more than 10%
  • VZ, PEP, RSH, BBY, WFC and many more all affected
  • Appears to be an auto buy program error on some issues
  • An auto-sell program on other issues

And since nobody at the SEC will move a finger to fix what we have been pounding the table on since April 2009, we can only hope that we get more and more increasingly more ridiculous market swings such as this one which will finally get absolutely everyone out of the markets. Even the vacuum tubes.

And for those curious, here is the list of 140 stocks that were BATSed, straight from the NYSE.

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malikai's picture

$5 says PPT is holding up SP right now.

overbet's picture

Just watch KCG stock price to know if they are gonna bust or not. Its a good hedge

Precious's picture

The County Coroner has examined the corpse and it is indeed dead. 

The Big Ching-aso's picture



Is there an Egyptian involved & has it been violated?

notbot's picture

Love the parting comment: "Don't use stop orders, that's the moral of the story"

lineskis's picture

Ah, those summer interns... You've got to love'em... xD

Tippoo Sultan's picture

" is the list of the 140 stocks..."

Manchester United isn't on that list ?

slaughterer's picture

With the help of KCG, good day to start shorting WFC. WFC stock will never get beyond $35.  

LawsofPhysics's picture

Selling to be outlawed in 3...2...1...

RobotTrader's picture

Maybe Bernanke suffered "premature ejaculation" today prior to the FOMC, by attempting to blow Wells Fargo shorts out of the water and trigger a runaway breakout in some key financial names.

Or maybe this is a warmup for some type of "shock and awe" intervention, so that Bernanke doesn't get embarrassed by a 3rd market selloff after his "Pie Hole" comments emerge during the FOMC chatter.

slaughterer's picture

Robo, was that you "putting the boner to" GMCR just a few minutes ago?

alien-IQ's picture

he's a catcher, not a pitcher.

Jlmadyson's picture

Flashy crashy baby!

mendigo's picture

Those charts looked like bot love-making.
Wore me out thinking about it.

PicassoInActions's picture

android vs IOS while Samsung is copying.... the algoritm for copying messed up all those stocks.

MsCreant's picture

When algos go wild, that means they show their boobs, right?

nonclaim's picture

They show the boobies at SEC, no less.

MsCreant's picture

Must be Mardi Gras. Boobs everywhere!

RockyRacoon's picture

This is a special occasion.  No regular old beads -- a string of pearls.

Hype Alert's picture

Rogue = exposes the gig and brings too much focus.

Ralph Spoilsport's picture

Too many "tech glitches" Bitchez. Something's up.

Hype Alert's picture

Yes, it's a rigged market.  It can't get any more obvious.

LawsofPhysics's picture

make sure you hold physical assets of real value and actual know the real value of your labor?  Turning japanese indeed.

francis_sawyer's picture

My services as a web page designer for pet grooming salons is sure to command top dollar in the new paradigm...

insanelysane's picture

MSM is saying only a few stock symbols.

 Nothing to see here.  Move along.

bob_dabolina's picture

Some people on ZH says this is good. No BS.

Benjamin Glutton's picture

Algo mulligan bitchez!

Hunter S. Thompson's picture

Made a trading mistake, thats okay Algos get a do-over

Hunter S. Thompson's picture

Made a trading mistake, thats okay Algos get a do-over

The Big Ching-aso's picture



Fyi.   You're only allowed 2 posting do-overs.

FoxMulder's picture

I'm gonna go get the papers, get the papers.

francis_sawyer's picture

It's just a little after dinner mint...

ericfoster3's picture

is this what it looks like when two algos go head to head against each other?  Can't wait for the Algo Battle Royale, only on pay per view!

Money 4 Nothing's picture

My best Tommy Boy impression...

"Unplug the Godamn thing!! For the love of Christ!!"

Nid's picture

Presumably, the algo-master was not previously long 3 million shares of once again, a clear example of Naked Short Selling (illegal).... which of course, doesn't actually exist and is just a paranoid delusion.

Captain Benny's picture

Agreed - I highly doubt the seller even had the shares to sell such a quantity.  I highly doubt they preborrowed that amount either.

Now we also must question -- Who the hell would jump in and backstop that trade with that quantity of buy orders?  No market maker will back AWF that much -- its way too much risk on their books.  This whole thing is a fraud.

JustObserving's picture

Bring back the Uptick rule.  But since the SEC is owned by the algo trading firms, it will never happen.  

This sustained selling is a regular feature of the silver and gold manipulation.

LawsofPhysics's picture

We have a winner!  PMs have been bad, they must be punished.  Moreover, commodities also need to be suppressed. 

slewie the pi-rat's picture


one can only hope it is only another episode of: theChroniclesOfTheShitfacedGolfer/Traderz

Rainman's picture

SEC is throwing in the towel on money fund reforms. Little guys beware of your cash...big guys will be out at a buck before shtf

onebir's picture

Hey, anything else is socialism (<-Tyler)...

Turin Turambar's picture

Hmmm, sounds like it's time for the market to break to the UPside again.  ;-)  LOL, what a joke.

slewie the pi-rat's picture

it's brianSack test-driving his new fuking 'edsel'?

Dr. Engali's picture

It will be interesting to see who gets Corzined In this mess

The Big Ching-aso's picture



Relief. We know they know what's causing these problems.  Now back 2 the Olympic Badminton results....

Jake88's picture

What no names? Are we protecting the innocent?