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Broken Market Chronicles: Algos Gone Autosell Wild - Video Explanation Of What Happened
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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$5 says PPT is holding up SP right now.
Just watch KCG stock price to know if they are gonna bust or not. Its a good hedge
The County Coroner has examined the corpse and it is indeed dead.
Is there an Egyptian involved & has it been violated?
Love the parting comment: "Don't use stop orders, that's the moral of the story"
Ah, those summer interns... You've got to love'em... xD
"...here is the list of the 140 stocks..."
Manchester United isn't on that list ?
Islam means Piece.
With the help of KCG, good day to start shorting WFC. WFC stock will never get beyond $35.
Its low volume rally look at this chart http://www.freefdawatchlist.com/p/stock-chart-analysis.html
Selling to be outlawed in 3...2...1...
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.
Robo, was that you "putting the boner to" GMCR just a few minutes ago?
he's a catcher, not a pitcher.
Flashy crashy baby!
Ah. Stuxnet comes home.
Those charts looked like bot love-making.
Wore me out thinking about it.
android vs IOS while Samsung is copying.... the algoritm for copying messed up all those stocks.
When algos go wild, that means they show their boobs, right?
They show the boobies at SEC, no less.
Must be Mardi Gras. Boobs everywhere!
This is a special occasion. No regular old beads -- a string of pearls.
Rogue = exposes the gig and brings too much focus.
Too many "tech glitches" Bitchez. Something's up.
Yes, it's a rigged market. It can't get any more obvious.
deleted
make sure you hold physical assets of real value and actual know the real value of your labor? Turning japanese indeed.
My services as a web page designer for pet grooming salons is sure to command top dollar in the new paradigm...
MSM is saying only a few stock symbols.
Nothing to see here. Move along.
Some people on ZH says this is good. No BS.
Algo mulligan bitchez!
Made a trading mistake, thats okay Algos get a do-over
Made a trading mistake, thats okay Algos get a do-over
Fyi. You're only allowed 2 posting do-overs.
I'm gonna go get the papers, get the papers.
It's just a little after dinner mint...
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!
My best Tommy Boy impression...
"Unplug the Godamn thing!! For the love of Christ!!"
Presumably, the algo-master was not previously long 3 million shares of AWF...so once again, a clear example of Naked Short Selling (illegal).... which of course, doesn't actually exist and is just a paranoid delusion.
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.
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.
We have a winner! PMs have been bad, they must be punished. Moreover, commodities also need to be suppressed.
one can only hope it is only another episode of: theChroniclesOfTheShitfacedGolfer/Traderz
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
http://www.bloomberg.com/news/2012-08-01/money-funds-seen-failing-in-crisis-as-sec-bows-to-lobby.html
Hey, anything else is socialism (<-Tyler)...
Hmmm, sounds like it's time for the market to break to the UPside again. ;-) LOL, what a joke.
it's brianSack test-driving his new fuking 'edsel'?
It will be interesting to see who gets Corzined In this mess
Relief. We know they know what's causing these problems. Now back 2 the Olympic Badminton results....
What no names? Are we protecting the innocent?
Only wish the lot size was 10k, 5k or even 1k.
Market armageddon would have ensued and Bob Pisani would have been screaming literally..
Looks to me like somebody laid their arm on the keyboard while they were in a real interesting half-hour conversation. "What is that damn beeping?!?"
if timmah were still with herr finiMiniSchewobble, they would be having wheel-chair races with hookers over this
The guy who was supposed to be watching this algo was getting a bj from an intern in an air-handling closet. The most expensive bj in history...
Yes, problem guy getting bj, algo is fine, need more algos, ban bjs
Love the piece by Fox quoting a trader:
"The algos went nuts this morning. Someone has a major, major problem on their hands."
Indeed they do.
P.S. See the Drudge headline. Great stuff.
Crap he changed it. Had a 1940s poster of a woman flexing saying We Can Do It. Underneath; Federal Deficit Highest Since 1940s.
NYSE Listed Halts High Frequency Trading as Algorithms Runs Rampant http://www.youtube.com/watch?v=0gMbuJsbhac&feature=g-all-u
O.K. Computer
Force Yahoo to investigate the (very few, always active) Botnets which people the Yahoo Finance boards - and you'll quickly get to the bottom of everything.
I believe these Botnets, if investigated well and thoroughly enough, would be found to be "run" by just a handful of mostly Asian HFTs, in turn linked to various Organized Crime entities.
Of course, Mitchell and Byrne have been saying something like this for years. But Yahoo could actually DO something about it, if it chose to cooperate with international police authorities.
I demand an inquiry into Yahoo Finance! Headed up by Bart Chilton & Jay Rockefeller. This damn world wide web pages must be stopped!
slewie intel indicates that "yahoo" has been completely hacked by rooskie mobsters vacationing on the jersey shore
they may control you too...
I see what you did there.
How many of these trades were naked short sales, I wonder.
The banks are up today, are they expecting a gift from their buddy B.
the fact that the term "rogue algo" is even part of the lexicon of todays market should be more than sufficient evidence to prove just how broken the market is.
or we might just be living in the year 1983
You mean 1984, of course...
THIRTY FUCKING MINUTES! un-fucking-believable.
These technical fubars are doing a great job restoring confidence in the market, as in everyone is confident that the market is a corrupt ponzi scheme.
New memes: 'rouge algos', 'technical fubars' - DAMN, what a great age we live in.
'Technical Fubars' is a plus 10
ameritrade trade with confidence bitch. Get 10 free trades stopped out per month. bitch
What's real? What's not?
Just because one of the machines that display red and green numbers went off today, there are questions. What about all the other red and green numbers that are displayed before people? Seriously, what confidence can there be in any of the numbers that are flashed before us?
What's funny is the conclusion in that video is to not use Stop orders and they should of had a panic off switch? So, most have known for a long time not to use market orders and now (actually for some time) don't use stop orders. Here's the next logical question, why use limit orders if the numbers you're watching are just bait and switch prints from some HFT? Really, the joke is no one pulled the plug?
My visual is JPM trading desk A is selling xyz stocks to JPM trading desk B, the bid and ask both from JPM and both created out of thin air. As they push the xyz up and down, maybe getting creative and trying to trace patterns out of the zig and zag, at the end of the day JPM has not gained or lost unless some fool comes along to buy xyz stock, then they HFT that dumb ass at what ever the fake trading level is for the day and on and on as ever fewer clueless dumb asses are around to throw their hard earned savings into the wood chipper.
add UVXY to the list.
Time to pack up shop.....?
I don't get this, isn't there a minimum transaction fee for trades? Wouldn't that solve all this BS?
why should humans have to pay to trade and algos don't ?
just a glitch in the matrix
just a glitch in the matrix.
wait,
LOL, I think they're just testing out a new defense. From "I don't know how the customer funds got co-mingled" To " Our computer screwed up and co-mingled the customer funds.
One thing is for sure. Someone's clients are going to pay for that prop mistake.
bullish
welcome to the world of junior miners
I feel bad for those of you who have to be in this market.
shoot first, feel sorry later...
Don't be a bunch of dumbasses. 3 min before 4 the race to the exits happened. Then today they just stop trading in all kinds of stocks...This is the crash, but many people will not realize it because the prices are being held up by the FED. If you try to exit from large positions you will be prevented by any means necessary.
Its over. If your not in cash or gold your screwed. This market is but a dream.
Chinese hacking? wtf? LOL listening to this. They better make these trades stick! Was it Knight Capital?
http://seekingalpha.com/mafne.html?tag=all&source=market_currents&anew_id=456221&url=https%3A//markets.nyx.com/sites/markets.nyx.com/files/traderupdate-attachments/11184/nyse_cee_symbols_aug_1_2012.xls
The Jetsons Algo
(Stop this crazy thing)
In the 60s it took a handful computers to make round trips to the moon. Today a computer has a million times the capacity and power and tens of thousands of them are involved in trading. It looks like in a few years we will need 99.9% of our technological and energy resources only to maintain the financial markets. Where is the kill switch for all this insanity please?
http://en.wikipedia.org/wiki/Molotov_cocktail
Welcome to the world of Modern MONEY LAUNDERING...by the elites...
Aren't Free Markets Great!
ppffftt ..seems like a normal day's trading in the paper silver market.
why the hell is algo-trading permitted in the first place?
i guess it's too late to change.. without algo-trading, there wouldn't be ANY volume on the exchanges.
Please also take SIRI to where it belongs... NOT
LOL
Ummm, if I shorted some stocks just before the Draghi comments, can I now say that it was "my alogorithm" and get my trades cancelled?
That'll teach you Americans to bad mouth Chinese swimmers!
As the bots become self-aware, they are emotionally immature, just playing childish pranks on y'all.
The 30 minutes is highly suspicious. Where I work, we keep the IT tracing and double checking everything in real-time even when we're doing automatic account topups for measly pennies far, far, far, short of the mutly-million market maker algo. Even at such low values, I've seen people yank the network cables out of servers in order to stop them from making a mess; and you're telling me noone noticed for 30 minutes? Bullshit.