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ES Volume Surges At Close As $3.3 Billion Sale Hits The Tape

Submitted by Tyler Durden on 07/27/2011 16:16 -0400

Debt Ceiling

It appears someone rather big just couldn't wait until the debt ceiling resolution was found, and instead decided that defection is the better part of a ponzified game theory. As such, just after the last second of trading, they dumped about $3 billion worth in ES. In the last tick, or just after, over 65k contracts of ES were sold at $50k per. Obama better find a resolution tomorrow or this dumpathon will be a humble appetizer of what is coming up.

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Wed, 07/27/2011 - 16:18 | 1499131 sabra1

http://www.cnbc.com/id/43915240

Wed, 07/27/2011 - 16:20 | 1499143 Re-Discovery

Extreme Bull flash, i.e. if Bove says it, it must be wrong.

Wed, 07/27/2011 - 16:25 | 1499166 101 years and c...

FDIC insured cash? ROFL! if there's a bank run, good luck getting your money from the insolvent FDIC....who wont be able to borrow from the Treasury since they cant sell any more debt. The only safe haven I know of, and chosen, is CASH held outside of a bank. imo, get your money before this hits the mainstream.

Wed, 07/27/2011 - 16:33 | 1499180 cossack55

Whats money?

Wed, 07/27/2011 - 16:44 | 1499224 Talleyrand

Gold is money.

Wed, 07/27/2011 - 17:26 | 1499408 TruthInSunshine

TD said: Obama better find a resolution tomorrow or this dumpathon will be a humble appetizer of what is coming up.

AKA the Hank Paulson/Ben Bernanke 'oooh boooga boooga, boo! boo! There will be tanks in the streets! There will be Martial Law, bitchez!' if Wall Street isn't given a big, wet sloppy fiat job, transferring Main Street USD to Wall Street, charade.

Booga! Boooga! Boo! Stocks gonna' plunge and your retirement plans destroyed, yo. Give us what we want and we'll toss you a bone.

Wed, 07/27/2011 - 22:42 | 1500187 DeadFred

It's all part of the plan and it wasn't some renegade investor who dumped at that most opportune time. Lots here will agree with that assessment but unlike most I don't think it's part of a plan to get a good deal on the debt ceiling plan. There isn't going to be a plan, at least not before the default. The banks control the government, not the other way around. The banks will make a killing on the crisis that comes out of the default and they will get their precious QE afterward. The squid has homed in on our 401Ks as the best food around it and won't be detered.

If you have it available take out two months of cash and put it in a safety deposit box. Stores will take fiat for food if/when the credit system freezes. You aren't getting any interest on it anyway so what do you lose, five bucks a month? Great swan insurance.

Wed, 07/27/2011 - 21:14 | 1500073 mt paul

money is not money

Wed, 07/27/2011 - 16:38 | 1499195 yabyum

101years, If you could not get your cash from a fubar bank it would be the last straw. J6p would be ripping lungs out by sundown.

Wed, 07/27/2011 - 16:42 | 1499218 pods

A truly scary scenario is if digital fiat decouples from physical FRNs. That would implode society in a cocaine heartbeat. Bennie says he can drop FRNs from a helicopter, but he knows he can't. He can only move the decimal place on the spreadsheet.

If there ever was a run on physical cash, it would be hyperinflation overnight, as the printing would have to be in large bills to satisfy demand for cash. That would destroy confidence when the first 10k notes hit the street.

pods

Wed, 07/27/2011 - 16:37 | 1499191 Manthong

"He rejects gold because it "is too illiquid and there is not enough of it,""

Yeah, you can't get enough of it -- at today's prices, but you CAN get enough of it at $5K or more an ounce.

Wed, 07/27/2011 - 16:19 | 1499136 SheepDog-One

So billionaires are panic selling now? That doesnt sound good.

Wed, 07/27/2011 - 16:20 | 1499144 slaughterer

Noticed that ES dump as well. Looks like some algos are picking up the pieces though.

Wed, 07/27/2011 - 16:40 | 1499198 hedgeless_horseman

...they dumped about $3 billion worth in ES.

Just remember, one algo's sale is another algo's purchase. Said another way, there are always two sides to every trade.

Wed, 07/27/2011 - 16:22 | 1499152 andybev01

Honestly, I read this as "defecation is the better part of a ponzified game theory."

I suppose it doesn't make a difference either way.

Wed, 07/27/2011 - 16:43 | 1499222 OuaisBla

It's called Distribution phase.

Wed, 07/27/2011 - 18:25 | 1499652 Piranhanoia

Hey Fan? get busy.

Wed, 07/27/2011 - 16:19 | 1499137 the not so migh...

Somebody needs us to take on more debt somewhere. Warning shot salvo.

Wed, 07/27/2011 - 16:19 | 1499138 Dr. Engali

Let the selling begin. Last one out turn out the lights.

Wed, 07/27/2011 - 18:25 | 1499655 espirit

Last algo holding will be the one with the empty bag. Well...you get the picture?

Wed, 07/27/2011 - 21:15 | 1500081 Pure Evil

How bout?

Last one holding the bag turns out the lights.

Better?

Wed, 07/27/2011 - 16:20 | 1499141 GeneMarchbanks

The bigger question is what that sad sap will be buying next? Something with some heft...

Wed, 07/27/2011 - 16:21 | 1499145 midtowng

This year's SPX chart is looking suspiciously like a great, big head-and-shoulders top.

Wed, 07/27/2011 - 16:22 | 1499149 max2205

Dark Pool swapping

Wed, 07/27/2011 - 16:22 | 1499150 Re-Discovery

"Obama better find a resolution tomorrow"

I simultaneously laughed and threw up when I read this. Net result - not good.

Wed, 07/27/2011 - 16:22 | 1499153 mynhair

W&R is restricted to after hours trading now?

Wed, 07/27/2011 - 16:23 | 1499154 FunkyMonkeyBoy

Sorry, that was me, will buy that back by end of close friday when the ES hits 1200.

Wed, 07/27/2011 - 17:25 | 1499405 Cassandra Syndrome

No worries. I suspected Robotrader shorted at the close.

Wed, 07/27/2011 - 16:24 | 1499160 PulauHantu29

What is an "ES?" I am sorry to be so stupid, and complain alot...but please tell me what ES is?

Wed, 07/27/2011 - 16:31 | 1499173 JohnG

No such thing as a stupid question.

/ES is Bloomberg ticker for e-mini s&p futures.

Wed, 07/27/2011 - 16:36 | 1499187 JohnG

http://en.wikipedia.org/wiki/E-mini_S%26P

Wed, 07/27/2011 - 20:41 | 1500026 Havana White

"No such thing as a stupid question."

< Will you marry me? >

Wed, 07/27/2011 - 21:10 | 1500069 JohnG

OK, ok, you got me on that one.

When one is seeking knowledge it's still true that there are no stupid questions.

Wed, 07/27/2011 - 16:32 | 1499179 mess nonster

Zerohedge is an autodidact's paradise.

Wed, 07/27/2011 - 16:34 | 1499182 ViewfromUnderth...

http://daytrading.about.com/od/marketprofiles/a/ProfileES.htm

1 of about 12,400,000 in 0.12 seconds. I don't think you are stupid....

Wed, 07/27/2011 - 22:56 | 1500214 DeadFred

There may not be any stupid questions but this is fight club so you may get your head ripped off anyway. Don't worry, virtual ripping off of heads doesn't hurt much. Try finviz.com for a good place to see a host of futures markets.

Wed, 07/27/2011 - 16:24 | 1499161 mynhair

Oweblahma can't find his ass with both hands. Why else are his staff expenses so high?

Wed, 07/27/2011 - 16:37 | 1499192 pods

He can find Mrs. O's in the dark though!

pods

Wed, 07/27/2011 - 16:25 | 1499164 razorthin

IWM on verge of crossing below the McGinley Dynamic for the first time on the monthly chart since crossing above it in April 09. It actually already has but I'm waiting for separation to confirm. The last time it crossed below it - July 07.

Wed, 07/27/2011 - 16:37 | 1499190 mynhair

Sounds bullish for TZA, whoever McGinley is.

Wed, 07/27/2011 - 21:13 | 1500079 JohnG

Never heard of it myself, but here you go:

http://www.investopedia.com/terms/m/mcginley-dynamic.asp

Wed, 07/27/2011 - 16:31 | 1499172 Scoted

That is a hell of a lot.

Where did you get the figure $50k per contract????

Wed, 07/27/2011 - 17:13 | 1499350 JohnG

The notional value of one contract is US$50 times the value of the S&P 500 stock index.

Wed, 07/27/2011 - 16:32 | 1499176 Hedgetard55

RIMM got, well, rammed for 6%. Jim? Jimmy C?

Wed, 07/27/2011 - 16:32 | 1499178 SwingForce

Oh, but no! Top tick in GOLD? A ha ha ha ha ha ha

Wed, 07/27/2011 - 16:33 | 1499181 mynhair

When is the next Oweblahma lecture scheduled?

Wed, 07/27/2011 - 16:40 | 1499201 mess nonster

Someone out there waaaay leveraged. Fear and panic can call the top in this game of chicken. It would be very ironic if Washington reached a solution on the debt ceiling, only to discover that the apocaypse happened anyway. (Tough on their egos, methinks...)

Wed, 07/27/2011 - 16:40 | 1499204 Franken_Stein

This dump is brought to you courtesy of the Plunge Invocation Team (PIT).

Wed, 07/27/2011 - 16:41 | 1499207 Re-Discovery

I can't wait until the headline crosses the tape that there is a "Resolution" to the debt ceiling crisis. The false flags that can be traded on that headline will let me convert skads of worthless paper into physical and finish building my sheeple-proof perpetual palace.

Wed, 07/27/2011 - 16:42 | 1499215 Critical Path

Heres to hoping a dumpathon allows me to scoop up some more metal at a discount.

Wed, 07/27/2011 - 16:42 | 1499217 OuaisBla

FRESH LOWS ON SPX!!!

FRESH BOUNCE BACK OF THE USD!

A recipe for disaster! Trouble ahead with our without a debt ceiling agreement.

Choose your poison!

Wed, 07/27/2011 - 16:49 | 1499221 SwingForce

Silly I say, since ES trade 9/24/7 so what's the 4pm EST deadline mean?

Whole Lotta Rosie! http://www.youtube.com/watch?v=5kmLmjz_cFs

Wed, 07/27/2011 - 16:53 | 1499262 bmwm395

I'm short es at 1338. when is saw this print. my first thought was to cover. But I'm going to hold on for now. 1270 target

Wed, 07/27/2011 - 17:19 | 1499383 glenlloyd

Smells like we need to get this puppy down far enough to justify a panic for QE³

Wed, 07/27/2011 - 17:23 | 1499394 highwaytoserfdom

Wow Bove Dick managed to pump C at the same time saying he is all out? Dick the top five are going to have to liquidate the backhanded GSE FED purchase..

The ES sale any guess on the POMO of crony?

Wed, 07/27/2011 - 17:26 | 1499410 Commander Cody

Dumpathon? Pukefest? I'm enraptured with imagery!

Wed, 07/27/2011 - 17:38 | 1499482 HedgeAccordingly

dont worry CROX and WFM beat EPS.. they will save us all! sacasm

Wed, 07/27/2011 - 17:56 | 1499549 MobBarley

Wait, are you telling me the furtively leaked well published media manipulation

story about the Whitehouse secretly (SECRETLY) phoning banking establishments and

reassuring them we won't default was somehow misinterpreted the other way?

How could this happen?

Wed, 07/27/2011 - 17:56 | 1499552 economists_do_i...

I'm as long-term bearish as anyone, but I think anyone hoping for a plunge tomorrow will be hugely disappointed.

A debt deal announced tomorrow would not be a shocker. Could easily send stocks on a 3-day or so rally.

That would create something like a sextuple (great word - lol) top in the S&P500. Very likely the point where buying/hopium is exhausted and there is nowhere to go but down. The economy is clearly deteriorating. The political leaders obviously don't have the answer/solution. Interest rate already at 0%. Debt ceiling at the top. The more they try to extend & pretend, the worse it will get. $100 crude, etc. Whatever they do, it won't work. Eventually reality will unfold. The world will solve it's own problems as the natural evolution of things take place. Debt reduced. Deflation. More responsible lending. A few banksters given the boot.

That said, I think the selloff today was overdone. Stocks compared to volatility is out of line. Short term bullish implications. A debt deal announcement would make for a logical catalyst for an upward move.

Bullish stocks. Bearish $VIX & TLT. Stabilized U.S. dollar.

Wed, 07/27/2011 - 18:30 | 1499677 espirit

Have some more pixie dust, koolaid, and hopium. Who in the h*ll is going to buy back in long, when even insiders won't hold.

Get a life.

Wed, 07/27/2011 - 18:50 | 1499747 Cdad

You think this debt issued will be settled by some announcement...tomorrow? Yikes, back away from the hopium pipe, dude.

Oh, and since the lie of great earnings continues even as the edifice burns, just check the earning miss on CLF. Nice miss. The brotherhood might want to join in on the plunging and screaming trade here tomorrow, after the Street first tries to bounce it on some promise from the conference call in the am.

Thu, 07/28/2011 - 00:40 | 1500340 tip e. canoe

question : how would a Tobin-type tax change that trade for you?

Wed, 07/27/2011 - 18:06 | 1499588 SAME AS IT EVER WAS

If $3.3 billion in es sold = $3.3 billion in es bought. Of course when the equity market is one big programmable slot machine it does not matter to much. what is sold is actually bought and bought is actually sold with 3x leveraged options, while short CDS to the n(th)-power, etc...., carry on people, BTFD.

Wed, 07/27/2011 - 19:08 | 1499791 He_Who Carried ...

Sine the US CAN pay for its debt, I am not worried about any default. What is worrisome is to have a bunch of wealthy amateurs toying with the markets instead of looking at the world they're creating for our children. Just dirty politics, no honesty nowhere to be found. It is disgusting!

Thu, 07/28/2011 - 00:10 | 1500317 DeadFred

You should have thought of that before you signed the contract that sent you to be born in this world rather than that other world where things are fair. I know, it sucks, I didn't read the fine print either.

Wed, 07/27/2011 - 19:19 | 1499808 Everybodys All ...

It is accordingly an extremely small number of security types and locations that you can justify as safe. Especially if the US Treasury loses it's AAA rating. You can very well bet with the downgrade there will be many more to come and not only with US Treasuries but with municipals everywhere through out the US. So you tell me how Bove is wrong on this call and I'll listen but I think for once he has it right.

Wed, 07/27/2011 - 19:17 | 1499816 Rainman

My biggest belly laugh of the day. The banksters are ripping down the shacks they actually wrote paper on. Then taking a tax deduction for a contribution. Viva la Community Reinvestment Act !

http://www.bloomberg.com/news/2011-07-27/bank-of-america-donates-then-demolishes-houses-to-get-rid-of-foreclosures.html

Wed, 07/27/2011 - 19:42 | 1499890 Midwest Prepper

What nobody is really talking about is the deleterious effect that this will have once the Langstrom modality reacts to the breaching of the Enzino Curve, relative to the drop in the ratio of share value to earnings on the Vandelay Continuum.

Surely that cannot be ignored as a bearish signal.

Wed, 07/27/2011 - 20:45 | 1500030 Smiddywesson

If there's a poll out there for characters to grace the new notes, here are my picks:

Robotrader $1000 bill

Math Man $10,000 bill

Robotrader $20,000 bill, becaue you just can't get enough of Robo

Leo K.: 100 gazillion dollar bill, because failed stimulus ain't failed unless you pull the ripcord all the way into the ground.

Wed, 07/27/2011 - 20:47 | 1500033 grey7beard

So if you want tax increases as part of the solution, you are a far left nutzo. But the Tea Party's cutting of everything except the military and anything that subsidizes big business is ok? Bove, like many others, is so partisan as to make his views not worth a silver certificate.

Anyone who does't support a balanced approach to tackling this problem is part of the problem.

Wed, 07/27/2011 - 21:50 | 1500138 toady

Thank you.

Now I've heard it from three sources; you, me, and old whats-his-name must have said 7 times the other day.

Wed, 07/27/2011 - 22:23 | 1500159 Eireann go Brach

Boehner just banged his head on the sunbed he is lying on when he heard this news!

Thu, 07/28/2011 - 02:22 | 1500417 carbonmutant

Looks like someone's front running tommorow's Unemployment Claims...

Of course they may have seen the housing numbers too...

Wed, 09/14/2011 - 03:48 | 1667106 chinawholesaler

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ES Volume Surges At Close As $3.3 Billion Sale Hits The Tape

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