Investors Punish Bernanke's Take Over Of Markets By Sending Trade Volume 19% Lower

Tyler Durden's picture

Every day the Fed's control of all capital markets becomes greater and greater, and every day ordinary investors, and even habitual gamblers, realize they have had enough with participating in a rigged casino, in which the now completely meaningless and irrelevant level of the S&P or the DAX or Nikkei or the 10 Year bond is nothing but a policy tool in the global devaluation race to the inflationary bottom. And while we have shown the week after week of relenltess equity outflows as aging baby boomers call it quits and instead opt for return of capital (than on), the full impact of this boycott on Bernanke's usurpation of capital markets, in which a simple WSJ scribe can move the market more than the deteriorating fundamentals of the world's biggest company-cum-gizmo maker is best seen in trading volumes. Which as Securities Technology shows, are now down 19% in the first half of 2012. Of course, if one were to exclude the robotic presence in stock trading, which is anywhere between 50 and 70%, it would be a miracle to find any human beings still trading with each other.

From STM

Trading is down 18.9% from the first half of last year, according to statistics reported by members of the World Federation of Exchanges. All told, $26.4 trillion worth of shares changed hands, nonetheless.


Of the three regions of the world tracked by the WFE, the Americas fared best. Volume at North and South America member exchanges was down 14.3% and accounted for half the world volume, at $13.8 trillion.


The decrease in trading volumes in the Americas region was “further pronounced by a 25% drop in number of trades,’’ the WFE said.

Faring the best was BM&BOVESPA in Brazil, down just 1.1%. Nasdaq OMX Group came in at -9.5% down. NYSE Euronext at 18.1% down.

Direct Edge and BATS Global Markets statistics are not gathered by the WFE.

The dollar volume of trading fell 21.5% in Europe, Africa and the Middle East. Trading in Asia and the Pacific region fell 22.5%.

The total market capitalization of companies listed on WFE exchanges increased by 5.3% in the first half of 2012, however, the trade group said. But capitalization remains below the level of one year ago.


Bond trading on exchanges declined for the second consecutive half-year, at 9.3% down, the WFE said. That represented trading worth $14.2 trillion. The European – Asia – Middle East region led the decline at -11.0%, while bond trading in the Asia-Pacific region increased 24.4%.


Trading of exchange-traded funds in the Americas also plunged, by 33.7 percent. That led to ETF turnover of $4.0 trillion in the first half. The Americas region represents more than 88% of total WFE turnover in ETFs.


The 18.9% plunge in trading, worldwide, actually is a slight improvement. After the first three months of 2012, trading was down 19.4%, year over year.

Which begs the question: we all know the only real mandate of the Chairman is to keep the S&P artificially elevated - even the Fed has admitted as much - but why, when it is becoming increasingly obvious that fewer and fewer people have any real wealth tied into the daily levitation of the ES

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lolmao500's picture

How could you punish the God of markets?

In other news...

Syria: West 'could deploy 300,000 troops following regime collapse'

Oh really?? Where will you find these 300 000 troops?? And if 300 000 troops are needed for a small country like Syria, how many will be needed for Iran? Can you say draft?

Michael's picture

Many investment banks are announcing major lay-offs at their trading desks. Haha.

Precious's picture

Maybe they can enlist in the army.

BC6's picture

but ... but the HFT robots bring greater liquidity

AcidRastaHead's picture

Yes, when will engineers develop fuck robots anyway.  Many lonely people are waiting.  Could be the new industry to get the economy growing again.

GAAPpreNixon's picture

Well, anyone at a trading desk that has gotten over their terminal case of the dumb ass from waking up to the total absence of a free market will probably not make good cannon fodder.

Depression II is going to eat Bernanke and friends alive.

azzhatter's picture

But....but...wasn't Benny "forcing" us into equities?

RiverRoad's picture


Maybe when THEY lose their jobs, it's a Depression.

Precious's picture

What the fuck does Bernanke do except interfere with public markets and our lives.  That's his fucking charter of course.  It's the charter for the whole fucking government.  Interference with public markets ergo interference with our lives.  Because they fucking know better, of course.

GAAPpreNixon's picture

Bernanke has the analytical ability to plan for depletion of corporate equity due to demand destructon caused by low wages and usurious banking practices of a bacterium approaching the last of the agar in the petri dish.

Bernanke and friends just DO WHAT THEY DO. As Tony Soprano once said, "This is what I am, This is what I do!". Bernanke is nothing but a parasitic POS with brains that can't outcompete even gut bacteria in IQ. 

debtor of last resort's picture

Well, they have to do SOMETHING for their foodstamps.

zrussell's picture

"Not any more", says the prez...

Liquid Courage's picture

Since the Military Wise Guys' cold analysis concludes -- rightly -- that Vietnam was lost on the "home front", the keystone of the PNAC war-mongering policy has been to avoid a draft at all costs ... but, out of pure desperate necessity, it seems the idea is being floated once again. Of course, the latest incarnation was couched in delicate euphemism with references to "National Service", whereby draftees would be deployed only domestically helping little old ladies across the street, shoveling snow and such, to free up troops for the hot spots, but let's remember these are the same "honorable" folks that brought us so-called "stop loss":

What? Your deployment is up and you want to go home? Too fuckin' bad, dogface.

What? Your hitch is up and you want to return to civvy street? Too fuckin' bad, we can't spare you.

Their word, in other words, is worth exactly nothing.


And it's 1, 2, 3, what're we fightin' for? Don't ask me I don't give a damn, The next stop is in Iran ...

Get those pipes warmed up Country Joe!

11b40's picture

"Since the Military Wise Guys' cold analysis concludes -- rightly -- that Vietnam was lost on the "home front"..."

It was lost on the home front when we decided to have a war without knowing what "winning" looked like.  Sound familiar?

Getting rid of the draft was the only way to continue to have all these regional wars and "privatize" so many military functions for even greater profits.  Draftees are way too big a problem.  They bitch & moan, many are actually educated and ask too many questions, and to top it off, the ones in the draft pool cause big problems at home.  Not good from the view of the MIC.  With an Army of draftees, we would have been out of Afghanistan in 6 months, and NEVER have done Iraq.

ebworthen's picture

And the robots don't need volume, just speed so they are in front of any trade of any volume.

Alea Iactaest's picture

Volume lower? Dark poolz bitchez!

Rich Bagg's picture

I'm an active trader and making a fortune.  Taking money from the Muppets and both fun and easy.  LMFAO



Dr. Engali's picture

I see with all your tenure here you already managed to  become predictable with your posts. Maybe you and our resident perma bull troll RobotTrader can get together and rub vaginas.

Strut's picture

FYI - its called scissoring when thier's vaginas involved, but in this case, I think it would be called "frotting".

TPTB_r_TBTF's picture

Is that girl in your image holding on to you?

11b40's picture

That's not a girl....that's a Congressperson in action!

Precious's picture

you are a transparent idiot, nothing more

Everybodys All American's picture

No one with any rightful knowledge of the markets comes here to brag whether they are long or short these markets. I call bs.

TheGameIsRigged's picture

Hey, Dick bag!  Obviously you are NOT an english major

zero19451945's picture

I thought ZH had a post that said some crazy percentage of American wealth was tied to the stock market...

lolmao500's picture

Replace wealth by pensions and you will be right.

Real wealth is not invested in that joke of a market. The real wealth is invested in land, infrastructure, companies...

earleflorida's picture

the gov't owns 30% +/+ of all u.s. land        [note: click on strange maps below][ important: please note the u.s. gov't 'central planning' regarding every states central axis of ownership?]

FWIW:  -  the U.S. gov't. is leasing our land to the Russians, Chinese, etc., for Oil/ Nat. Gas./ Uranium exploration.


Winston Churchill's picture

Thru' their 'managed' pension funds.

All that hard work just to give Unle Sam a big present.

If you cannot touch it,it surely ain't yours.

otto skorzeny's picture

why the 150 point rip/VIX snapback-rumor du jour?

pingpongthesecond's picture

Selling option premium... Any idiot can make money.

The Monkey's picture

Catapiller's CEO: world economy improving. Maybe for large capital producers that are getting subsidized by taxpayer backed low interest loans from the US EXIM bank, and the airlines, miners and farmers buying the equipment on price signals from speculators.

In other news, the world moves closer to max order bookings and supply / production runneth over.

TPTB_r_TBTF's picture

Catepillar-CEO is bullish?  Catepillar must have already received the contract to rebuild Syria.  Or have they already placed bids to rebuild Iran?

TruthInSunshine's picture

Did anyone notice the woman in the red dress?


Yeah...Mouse created her. He can arrange a far more personal session with her for those who make their wish known.


“To deny our impulses is to deny the very thing that makes us human.”



Auburn's picture

and looking at todays activity and disconnects between the DOW and everything else just proves how sick this is.  Perhaps the only humans in this are the ones waiting for the complete collapse. 

The Monkey's picture

You and me are the ones that are "the problem". Why would you allow the economy to worsen (and slack to be taken out) when you can step on the gas?

These policies are a sign of extreme desparation and they are creating an absolutely magnificent top.

Cdad's picture

fewer and fewer people have any real wealth tied into the daily levitation of the ES

So true.  Stocks rise as soon as the selling pauses...and the machines take over with their mark up games.

As for is because the banks are holding the equity bag.  Never over the course of the last four years has the fate of the equity market been more clearly bleak.  The time to exit is now.


insanelysane's picture

Q: Why? 

A: Pension funds and 401k plans

If those collapse and zero out, the sheeple wake up and revolt.

unwashedmass's picture

except in the gold and silver sectors....


where --- since we have been pushed to the side of the playground and forbidden to enter Ben's magic casino -- the stocks have languished.....


and now real people are picking up the stocks....many of which are selling UNDER BOOK VALUE....


And BOOK VALUE is pegged to the JPM/COMEX/MAGIC casino numbers for gold and silver.......



Racer's picture

and that is exactly how they like it... so easy to move it wherever they want without interference...

The 'market' is soaring.....see economy booming

Want more free money.... QuEasy..... crash it...


adr's picture

Flesh and blood investors buy individual stocks. They can't watch a few thousand stocks at once and place buy or sell orders on all of them at once.

The computers can, and the computers buy baskets of stocks they are programmed to buy. One stock may rise 10% with three others for no reason other than a fund ordered its computer to buy that particual set.

Auto parts are connected to burritos, yoga pants, hotal booking, coupons, and diet drugs. Why? Can't really tell any reason, other than market manipulation.

You may follow the fundamentals of a company and see a great investment opportunity, only to watch your fortune evaporate because a buffalo wing chain mised estimates and a major hedge fund had to liquidate other positons to cover the loss.

Is that investing how it's supposed to be done?

hedgeisforpussies's picture

dudes just chill out. no need to get angry. this is all big matrix and big ben is the creator. when neo gets to reset the system we will back to where we started with humans trading against each other. its all a cycle. post wwII system controlled what price to pay for bread and yields on bonds was also fixed. so where the stock prices. we had deregulation over last 60 years so now we have regulation. it all ends at some point. 

Rich Bagg's picture

Watch how it's done fellas.  Short TSCO and LONG WFM for 24 hours.  LMFAO!!!!!



TPTB_r_TBTF's picture

If you'da given me this info 48 hours ago, you coulda impressed me today.

RobotTrader's picture

Bears foiled again.


Probably be some "surprise announcement" tomorrow that will gap us back up over the 50-day again.

Meanwhile muni-bonds making new highs yet again, creating even more "Animal Spirits" for equity traders.

Savyindallas's picture

Isn't it Greece's turn to get bailed out again? Or is is their turn for another baillout rumor?  I think they're up again  -it's been a couple of weeks.