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Fat Finger Halts, Unhalts AAPL Shares Which Hit $542.80

Tyler Durden's picture




 

When the largest market cap company in the world loses 10% of its market cap thanks to a fat finger from a 100-lot retail-momo-monkey (hitting market order not stop?), questioning your sanity (or the sanity of the hedge fund hotel it has become) is perhaps worthwhile. At 10:57, AAPL was halted as Bloomberg noted: *APPLE HALTED AFTER TRADE AT $542.80/SHR for Reason Code T7 (which seems entirely irrelevant) and then reopened at 11:03 with a small loss. Nothing to see here, move along (except the irony of the fact that the trade occurred on BATS which just IPO'd and the SEC investigation in general on HFT/colos).

 

Courtesy of NANEX - BATS executed an ugly stub quote...

 

Looking at the ticks initially doesn't look like a flash-crash tumble and more likely a fat-finger indeed.

Chart: Bloomberg

 

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Fri, 03/23/2012 - 11:14 | 2283482 hedgeless_horseman
hedgeless_horseman's picture

 

 

This is your captain, we are hearing there may be some air pockets up ahead, so keep your seatbelts on.

Fri, 03/23/2012 - 11:16 | 2283489 GetZeeGold
GetZeeGold's picture

 

 

I think I'm gonna hurl.

 

Hey someone removed all the air sickness bags......real funny!

 

Fri, 03/23/2012 - 11:19 | 2283510 TheFourthStooge-ing
TheFourthStooge-ing's picture

Apple trading halted after someone takes a bite out of it.

 

Fri, 03/23/2012 - 11:20 | 2283516 101 years and c...
101 years and counting's picture

so, does that close all the gap ups in the last month?  these criminals are the best.

Fri, 03/23/2012 - 11:29 | 2283566 Big Slick
Big Slick's picture
"Blank faces -- calm as Hindu cows."
Fri, 03/23/2012 - 12:07 | 2283817 bernorange
bernorange's picture

I guess reason code T7 doesn't apply to the silver crusher.

Fri, 03/23/2012 - 12:12 | 2283842 TruthInSunshine
TruthInSunshine's picture

Steve Jobs' theories on the value-added activity of dropping acid is vindicated, at least in the realm of these markets, because one would stand a far, far, far, FAR better of not losing as much fiat, and possibly even makin some fiat (e.g. BATS, PCLN, CMG), if they were trading it whilst on acid.

Fri, 03/23/2012 - 12:18 | 2283893 NumberNone
NumberNone's picture

Maybe somebody was trading on their new iPad, it got too hot, and they pressed some buttons by accident as they flung it from their on-fire crotch.  Nothing to see here. 

Fri, 03/23/2012 - 17:52 | 2285197 SilverDosed
SilverDosed's picture

Didnt the same thing happen on tuesday at about the same time?

Fri, 03/23/2012 - 11:17 | 2283498 HelluvaEngineer
HelluvaEngineer's picture

The criminals are finally handing off their positions

Fri, 03/23/2012 - 11:18 | 2283507 SheepDog-One
SheepDog-One's picture

Or trying to anyway. Must be kinda tough passing off the pump to a volumeless market.

Fri, 03/23/2012 - 11:24 | 2283540 LongSoupLine
LongSoupLine's picture

It doesn't f'ing matter...SPX has ramped 7 points since shitty home building data.  It's a piece of shit crooked system. period,

Fri, 03/23/2012 - 11:29 | 2283568 Divided States ...
Divided States of America's picture

Precursor to whats going to happen on Judgement Day. They are just testing the circuit breakers out to see if they are working a week before the calling.

Fri, 03/23/2012 - 11:40 | 2283640 drink or die
drink or die's picture

I think you meant to say "culling"

Fri, 03/23/2012 - 11:14 | 2283483 slaughterer
slaughterer's picture

Bullish!

Fri, 03/23/2012 - 11:17 | 2283494 jus_lite_reading
jus_lite_reading's picture

Everything is bullisht...

But I would have to say that the circuit breaker rule is not in effect if this was a fat finger BUY...

Fri, 03/23/2012 - 11:31 | 2283571 Acet
Acet's picture

Good News: Bullish!

Bad News: Comrade Bernanke turns the printers on - Bullish!

It's a win-win market out there ... unless you're retail.

Fri, 03/23/2012 - 13:52 | 2284294 PrintingPress
PrintingPress's picture

Apple is all the retail!

Fri, 03/23/2012 - 11:14 | 2283485 SheepDog-One
SheepDog-One's picture

Thats a large market crap!

Fri, 03/23/2012 - 11:15 | 2283487 Seize Mars
Seize Mars's picture

What a shit show.

Fri, 03/23/2012 - 11:16 | 2283490 monopoly
monopoly's picture

Patience, it will get there again.

Fri, 03/23/2012 - 11:17 | 2283496 5880
5880's picture

yup

Fri, 03/23/2012 - 11:17 | 2283497 TwoJacks
TwoJacks's picture

uh, when you input market order don't most trading platforms ignore your price unless you choose "limit."

i call b.s. on the fat finger excuse

Fri, 03/23/2012 - 11:18 | 2283509 HelluvaEngineer
HelluvaEngineer's picture

I'm sure it's a bug in the GetMeOutOfHere algo, likely due to latency

Fri, 03/23/2012 - 11:20 | 2283513 Schmuck Raker
Schmuck Raker's picture

That would be a default setting, usually easy to disable.

Fri, 03/23/2012 - 11:17 | 2283499 SheepDog-One
SheepDog-One's picture

-Reason Code T-7: Thats an Error-

Fri, 03/23/2012 - 12:42 | 2283997 Zero Debt
Zero Debt's picture

iFUBAR

Fri, 03/23/2012 - 11:20 | 2283502 All Rise
All Rise's picture

I wondered why the markets were not up today. Good job they got it sorted quick.

Fri, 03/23/2012 - 11:17 | 2283503 realtick
realtick's picture

They cleaned that chart up quick.

The Procter & Gamble chart flash crash not so much:

http://stockcharts.com/h-sc/ui?s=PG&p=W&b=5&g=0&id=p87629369884

 

Fri, 03/23/2012 - 11:21 | 2283523 Bring the Gold
Bring the Gold's picture

They doing a test run of a future crash today? Something smells fishy...and I say that as we sit in the depths of a sardine trawler they call a market...

Fri, 03/23/2012 - 11:18 | 2283504 Equites
Equites's picture

Or just give credit to the algo-guy/gal behind it (not that I will, though)

Same like the P&G one where some just made 10% in seconds (they could even afford transaction tax on that one)

Fri, 03/23/2012 - 11:19 | 2283508 Cdad
Cdad's picture

A market of fat fingered psychopaths.  Great!  Gimmie more of that, for sure.  Generational opportunity is stocks, as the market itself shows time and time again that it is not a market.

Fri, 03/23/2012 - 11:21 | 2283514 SheepDog-One
Fri, 03/23/2012 - 11:20 | 2283515 Dr. Engali
Dr. Engali's picture

That can"t be allowed to happen. It's the only growth stock left in the country.

Fri, 03/23/2012 - 11:20 | 2283521 blunderdog
blunderdog's picture

Guess it's true, anyway, the market-overseers really have found a way to prevent flash-crashes.

Fri, 03/23/2012 - 11:21 | 2283525 Waffen
Waffen's picture

I guess I dont get it. Someone tries to dump A bunch of shars that Would drop the price to 542 so circuit breaker engages and dissallowed the trade?

Fri, 03/23/2012 - 11:23 | 2283529 The Axe
The Axe's picture

Hi...I am a HFT  I provide liquidity in AAPL !   You need me!!!

Fri, 03/23/2012 - 11:30 | 2283572 Atomizer
Atomizer's picture

Dave, although you took very thorough precautions in the pod against my hearing you, I could see your lips move.

Fri, 03/23/2012 - 11:23 | 2283532 Matt
Matt's picture

Why are Wedell and Reed even allowed to trade such a vital stock as AAPL? They have proven time and again their sausage fingers cannot handle the delicacy of trading Systemically Important equities.

Fri, 03/23/2012 - 11:23 | 2283533 CheapBastard
CheapBastard's picture

Someone saw the Bubble and paniced.

Fri, 03/23/2012 - 11:24 | 2283535 San Diego Gold Bug
San Diego Gold Bug's picture

Ooops......my bad.

 

 

Fri, 03/23/2012 - 11:24 | 2283538 the 300000000th...
the 300000000th percent's picture

too big to fail lol

Fri, 03/23/2012 - 11:29 | 2283551 Money 4 Nothing
Money 4 Nothing's picture

Too fuked to function.

The man behind the curtain dropped his cafe' au lait and banged his head on his key board.

Fri, 03/23/2012 - 11:24 | 2283539 campag
campag's picture

fat finger or fat algo on crude markets minutes ago - no closure of oil market though  and tough if you got stopped out . All well on the ICE exchange then !

Fri, 03/23/2012 - 11:25 | 2283541 GMadScientist
GMadScientist's picture

Interesting. Sweep this under the rug a day after announcing a focus on HFT. That'll inspire confidence in the markets. LOL

Fri, 03/23/2012 - 11:36 | 2283542 Money 4 Nothing
Money 4 Nothing's picture

Overheated Algo IPad?

Fri, 03/23/2012 - 11:25 | 2283543 scatterbrains
scatterbrains's picture

perhaps he meant to dump into the shadow market and  fat fingered it into the open exchanges.  We probably weren't suppose to see the institutions bailing out yet.

Fri, 03/23/2012 - 11:36 | 2283625 Alea Iactaest
Alea Iactaest's picture

I think the term you are looking for is 'dark pools'.

Fri, 03/23/2012 - 11:25 | 2283546 SheepDog-One
SheepDog-One's picture

100 share trade drops the largest market crap stock -10%....LULZ shall ensue from here on out, big time.

Fri, 03/23/2012 - 11:34 | 2283608 Waffen
Waffen's picture

Was Tyler joking or was it really just 100 shares?

So selling 100 shares knocks off 10%?

Is this right?

Fri, 03/23/2012 - 11:25 | 2283547 crawldaddy
crawldaddy's picture

When I was like 6 and played whiffleball in my neighbors back yard and there was a close play at 1st base, some times we would simply do a redo.  Nice to know that our gazillion dollar ponzi stockmarket follows suit and does the same as 6 year olds playing whiffle ball.

Fri, 03/23/2012 - 11:28 | 2283561 SheepDog-One
SheepDog-One's picture

Calvinball.

Fri, 03/23/2012 - 12:32 | 2283948 SmoothCoolSmoke
SmoothCoolSmoke's picture

Man, I loved wiffleball.

Fri, 03/23/2012 - 11:28 | 2283562 Al Huxley
Al Huxley's picture

Wow, I wonder why retail is so hesitant to get back in the equity pool?  Maybe they need a new rule that people with 'fat fingers' aren't allowed to enter trades any more.

Fri, 03/23/2012 - 11:33 | 2283591 Money 4 Nothing
Money 4 Nothing's picture

Corporate Gyms been closed for a while now.

Fri, 03/23/2012 - 11:31 | 2283584 SheepDog-One
SheepDog-One's picture

Nein! See Lebowski vee vill only execute zee Apple trades at Zee $600, ya if you try it again vee come back and cut off your johnzon vee believe in nothing!

The Big Lebowski: Nihilists - YouTube

Fri, 03/23/2012 - 11:31 | 2283592 Catullus
Catullus's picture

I think 200 hedge fund managers just soiled themselves for at least 20 microseconds, which is like an eternity in HFT world.

Fri, 03/23/2012 - 11:33 | 2283598 Atomizer
Atomizer's picture

Its just an anomaly folks, trade was most likely made on an overheated iPad.

Fri, 03/23/2012 - 11:35 | 2283620 the not so migh...
the not so mighty maximiza's picture

What a confidence builder

 

Fri, 03/23/2012 - 11:37 | 2283628 streetcrawler
streetcrawler's picture

I work right down the street from BATS, want me to stop in and see what's up?

Fri, 03/23/2012 - 11:40 | 2283642 Waterfallsparkles
Waterfallsparkles's picture

That is the problem with HFT.  No one has an order in to buy below the current buy, ask quote because they do not want the Computer to trade based on trades below current bid ask.  no one wants to tip off the Computer on their intentions.

Fri, 03/23/2012 - 11:44 | 2283670 BlackholeDivestment
BlackholeDivestment's picture

...somebody spilled their patchouli oil on their Apple, reaching for their burnt cup of Starbucks, because their nails where still wet on their right hand. http://www.youtube.com/watch?v=ufYYOXiEtxM

Fri, 03/23/2012 - 11:47 | 2283688 YesWeKahn
YesWeKahn's picture

This someone just found the real value of his shares.

Fri, 03/23/2012 - 11:51 | 2283706 lolmao500
lolmao500's picture

Funny how when this happens in silver, nothing is stopped...

Fri, 03/23/2012 - 11:54 | 2283729 kralizec
kralizec's picture

iPlunge!

Fri, 03/23/2012 - 11:56 | 2283753 Hobbleknee
Hobbleknee's picture

Would they stop trading if it went up 10%?

Fri, 03/23/2012 - 11:58 | 2283763 vote_libertaria...
vote_libertarian_party's picture

fat finger?

Maybe the bots were scanning Twitter feeds and one had the word combinations of 'AAPL'...'product'...'recall'....'lawsuits'

Fri, 03/23/2012 - 11:58 | 2283766 NumberNone
NumberNone's picture

The Israeli Federal Reserve has jets gassed up and on the runway...

Fri, 03/23/2012 - 12:11 | 2283840 Outlaw Of The W...
Outlaw Of The Wasteland's picture

"All stop loss orders stand, all limit orders cancelled" - the jew

Fri, 03/23/2012 - 12:18 | 2283885 El Hosel
El Hosel's picture

"Orderly markets" will stand... Nothing to see here, move along.

These flash crashes further motivate the working group to maintain complete control at all times. We can't have people losing confidence in the system, its the only one we have. Rig it until it hurts.

Fri, 03/23/2012 - 13:25 | 2283843 oldman
oldman's picture

@Tyler

Off topic from post last night on HFT/UN article---repeat question

"@ Tyler or anyone in operations:

In the old days, no matter whether it was a day trade or back office error or a simple typo, there had to be a confirmation generated and on the errors a separate confirmation cancelling and/or correcting the first confirmation. If this is still the case, then why can't the CFTC do an audit to see whether each tick represents a trade and then match up the confirmations with the trades to be certain that these are not wash trades to launder money or hide the theft from the Fed by the banks?

It has been obvious since December that the game has really changed in gold or, at least what is represented by the tick activity on netdania. If I wanted to wash money or steal from the Fed---I would certainly take advantage of these HFT trades---they are  dream to steal with because no one has to report the day trades and certainly not the nanosecond trades to the CFTC. Is there a connection here?

"                             thanks     om"

Fri, 03/23/2012 - 12:17 | 2283879 I should be working
I should be working's picture

Last year during the August crash I went into my brokerage account and it said my shares of AAPL had been suspended with the last trade at $87 a share.  I can't remember the exact date, it was sometime in the middle of the beserk mid-August crash.  

If you have active stop losses I would turn them off.

Fri, 03/23/2012 - 12:39 | 2283978 ZenOps
ZenOps's picture

9%  thats damn impressive.  Almost double my estimate for the first of possibly many sells.

If you eat a virtual apple will it still fill your tummy?

Fri, 03/23/2012 - 12:42 | 2283996 Yen Cross
Yen Cross's picture

  AAPL as the " Hedge Fund Hotel" .  I almost chocked up my orange juice on the keypad. That was funny.

Fri, 03/23/2012 - 13:00 | 2284078 walküre
walküre's picture

You guys are damn good, Tylers. Keep it up.

Fri, 03/23/2012 - 13:03 | 2284094 nmewn
nmewn's picture

Here...pull my fat finger.

Fri, 03/23/2012 - 13:28 | 2284185 bugs_
bugs_'s picture

reason code T7 - Terminator VII

Fri, 03/23/2012 - 13:32 | 2284217 Seorse Gorog fr...
Seorse Gorog from that Quantum Entanglement Fund. alright_.-'s picture

I've never owned nor intend to own any crApple toys, but, goddam, it's the best stock I've got!

Fri, 03/23/2012 - 13:45 | 2284267 dbTX
dbTX's picture

Easy explanation: the e-Trade kid was in time out and pitched a fit.

Fri, 03/23/2012 - 18:23 | 2285320 cristo
cristo's picture

 

E-Tade baby's fat finger http://youtu.be/N6oNJHvExBI

Fri, 03/23/2012 - 13:51 | 2284293 Geoff-UK
Geoff-UK's picture
http://money.msn.com/market-news/post.aspx?post=f0b093c6-7ac7-45de-acb8-cc9638aa834b&_nwpt=1 . The part that makes my blood run cold every time I see this bullshit?: . Apple at $542.80? Never mind Trading of shares is halted for 5 minutes after the stock is suddenly quoted as being down more than $56. Turns out the trade was a glitch and has been canceled. (emphasis added) . The trade was a GLITCH? NO, THE COMPUTER AT BATS GLOBAL MARKET MADE A FUCKING BAD TRADE DUE TO SHITTY PROGRAMMING (THEIR own fault) AND THE NASDAQ GOVT FLUNKIES TOOK THE MONEY BACK FROM THE WINNER OF THE TRADE! . If some guy's 18 year old son offers me a plasma TV at a yard sale for $150 bucks because he doesn't know/doesn't care about the true value, and his dad left him in charge--he then helps me lift it into my truck, fills out a bill of sale, he signs it, I sign it, we shake hands and I drive home. Transaction concluded! . This is like the NASDAQ then come INTO MY HOUSE and take the TV back. "Sorry, it was a 'glitch'...plus, the guy's dad is the Deputy Mayor so here's your $150 back." . Anyone still in the stock market is a fucking moron. The criminals get to take their mistakes back.
Fri, 03/23/2012 - 14:52 | 2284548 juggalo1
juggalo1's picture

I don't understand how a fat finger trade of 100 shares can mess up the stock that much.  Doesn't it trade 100x a second?  Wouldn't the computers have churned over that trade, and gone back to normal before a human even noticed?

Fri, 03/23/2012 - 15:49 | 2284710 Richard Whitney
Richard Whitney's picture

Now I have 100 shares of AAPL at 542. I can't complain.

Sat, 03/24/2012 - 04:01 | 2286172 Grand Supercycle
Grand Supercycle's picture

The Wile E. Coyote scenario continues...

SPX daily chart with rising wedge enclosed by substantial megaphone pattern.

http://stks.co/31QM

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