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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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Wed, 07/25/2012 - 14:49 | 2650216 lolmao500
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?

Wed, 07/25/2012 - 14:52 | 2650261 Michael
Michael's picture

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

Wed, 07/25/2012 - 14:56 | 2650279 Precious
Precious's picture

Maybe they can enlist in the army.

Wed, 07/25/2012 - 15:05 | 2650318 BC6
BC6's picture

but ... but the HFT robots bring greater liquidity

Wed, 07/25/2012 - 15:47 | 2650509 Martin W
Martin W's picture

Fuck robots

Wed, 07/25/2012 - 16:04 | 2650575 AcidRastaHead
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.

Wed, 07/25/2012 - 15:24 | 2650432 GAAPpreNixon
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.

Wed, 07/25/2012 - 16:21 | 2650633 azzhatter
azzhatter's picture

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

Thu, 07/26/2012 - 00:28 | 2652080 RiverRoad
RiverRoad's picture


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

Wed, 07/25/2012 - 15:05 | 2650271 Precious
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.

Wed, 07/25/2012 - 15:37 | 2650476 GAAPpreNixon
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. 

Wed, 07/25/2012 - 15:11 | 2650351 debtor of last ...
debtor of last resort's picture

Well, they have to do SOMETHING for their foodstamps.

Wed, 07/25/2012 - 15:54 | 2650543 zrussell
zrussell's picture

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

Wed, 07/25/2012 - 16:10 | 2650594 Liquid Courage
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!

Wed, 07/25/2012 - 17:46 | 2650984 11b40
11b40's picture



Wed, 07/25/2012 - 17:46 | 2650988 11b40
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.

Wed, 07/25/2012 - 14:42 | 2650218 ebworthen
ebworthen's picture

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

Wed, 07/25/2012 - 14:55 | 2650275 Alea Iactaest
Alea Iactaest's picture

Volume lower? Dark poolz bitchez!

Wed, 07/25/2012 - 14:43 | 2650220 Rich Bagg
Rich Bagg's picture

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



Wed, 07/25/2012 - 14:53 | 2650262 Dr. Engali
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.

Wed, 07/25/2012 - 15:10 | 2650342 Strut
Strut's picture

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

Wed, 07/25/2012 - 16:10 | 2650593 TPTB_r_TBTF
TPTB_r_TBTF's picture

Is that girl in your image holding on to you?

Wed, 07/25/2012 - 17:49 | 2651017 11b40
11b40's picture

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

Wed, 07/25/2012 - 14:58 | 2650290 Precious
Precious's picture

you are a transparent idiot, nothing more

Wed, 07/25/2012 - 15:17 | 2650383 Everybodys All ...
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.

Wed, 07/25/2012 - 15:33 | 2650472 TheGameIsRigged
TheGameIsRigged's picture

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

Wed, 07/25/2012 - 14:43 | 2650224 zero19451945
zero19451945's picture

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

Wed, 07/25/2012 - 14:48 | 2650245 lolmao500
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...

Wed, 07/25/2012 - 15:57 | 2650513 earleflorida
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.


Wed, 07/25/2012 - 14:49 | 2650247 Winston Churchill
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.

Wed, 07/25/2012 - 14:43 | 2650227 otto skorzeny
otto skorzeny's picture

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

Wed, 07/25/2012 - 14:43 | 2650229 pingpongthesecond
pingpongthesecond's picture

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

Wed, 07/25/2012 - 14:55 | 2650273 The Monkey
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.

Wed, 07/25/2012 - 16:15 | 2650608 TPTB_r_TBTF
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?

Wed, 07/25/2012 - 14:46 | 2650231 TruthInSunshine
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.”



Wed, 07/25/2012 - 14:44 | 2650233 Auburn
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. 

Wed, 07/25/2012 - 15:01 | 2650301 The Monkey
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.

Wed, 07/25/2012 - 14:45 | 2650236 Cdad
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.


Wed, 07/25/2012 - 14:45 | 2650239 insanelysane
insanelysane's picture

Q: Why? 

A: Pension funds and 401k plans

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

Wed, 07/25/2012 - 14:46 | 2650240 unwashedmass
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.......



Wed, 07/25/2012 - 15:57 | 2650552 unwashedmass
unwashedmass's picture,0,708268.story


too bad Jamie Dimon will have put all the silver miners out of business

Wed, 07/25/2012 - 14:47 | 2650244 Racer
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...


Wed, 07/25/2012 - 14:48 | 2650246 adr
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?

Wed, 07/25/2012 - 14:49 | 2650248 hedgeisforpussies
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. 

Wed, 07/25/2012 - 14:52 | 2650259 Rich Bagg
Rich Bagg's picture

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



Wed, 07/25/2012 - 16:34 | 2650695 TPTB_r_TBTF
TPTB_r_TBTF's picture

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

Wed, 07/25/2012 - 14:52 | 2650260 RobotTrader
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.

Wed, 07/25/2012 - 16:27 | 2650661 Savyindallas
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.


Wed, 07/25/2012 - 14:53 | 2650269 adr
adr's picture

Remember natural gas is up 70% because more people turned on air conditioning.

Yeah, sure that is the reason. A 50%+ increase in the volume of contracts traded and Goldman Sachs trying to corner the market on delivery has nothing to do with it.

Wed, 07/25/2012 - 14:54 | 2650270 DCFusor
DCFusor's picture

I like trading against the robots.  They're dumber than (many) humans and they have a too short attention span to beat me most of the time - I couldn't care less about them scalping sub-pennies since that's too tiny for me to care. 

I do dislike the correlation, which I think is caused more by ETFs than anything else.  I screws up my plans of going long the best, but short the worst depending on the trend - there's not as much difference as there used to be.

Junk away, I have to do this to "eat my own dogfood" anyway.  Else I'd be eating my seed corn.

Wed, 07/25/2012 - 15:02 | 2650309 adr
adr's picture

ETFs were such a great idea. You can risk your money and buy something without actually owning anything. The nice side bets at the craps table.

It would be like me making you buy a car that I get to use, and that I get the title for. Then making you also pay for the gas, but at a set price of $3.50. If I fill up for less than $3.50 you get to keep the difference. If I fill up for more than $3.50 you pay the difference.

Someone sold people on the idea that this was a great investment opportunity. Don't know how people can be that stupid.

Wed, 07/25/2012 - 14:56 | 2650274 RobotTrader
RobotTrader's picture

They are painting yet another "Nipple Bottom" on XRT, IYR again.


How many times have people bought the dips and won on these?

Too high to count since 2009.


Wed, 07/25/2012 - 14:56 | 2650281 OldE_Ant
OldE_Ant's picture

Yeah but hey we have bot football to look forward to.

End of Line

Wed, 07/25/2012 - 14:56 | 2650283 marz929
marz929's picture


Wed, 07/25/2012 - 18:33 | 2651163 poor fella
poor fella's picture

Haha! Nice 'Galt' reference? We'll be seeing that for decades with no resolution...

Everyone should drop that once in awhile with friends, in public, on the radio, and television.

Wed, 07/25/2012 - 14:59 | 2650293 eclectic syncretist
eclectic syncretist's picture

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

Because the companies ability to raise capital is a function of their share value.  If the share prices plummet and no one will buy their shares they can't raise as much capital.  It would be even harder to climb out of the economic doldrums we are in.

Of course it's an illusion based on confidence and psychology.  In other words, if people lose all confidence in these markets because they are being so heavily manipulated then the companies would still have a hard time raising money based on what is obviously an inflated market value.  So the chairsatan may be just pissing in the wind, but he definitely believes low stock prices made the great depression longer and more painful than it needed to be.

Wed, 07/25/2012 - 15:14 | 2650369 adr
adr's picture

When you have corporations that can bring in billions in revenue, yet only generate a few million, or even lose millions in profit on margins that are absolutely insane. You have a very big problem 

Walmart and other stores like them work on average margins in the 60-70% range. Don't believe the bullshit they put in reports. A buyer at Walmart won't touch your product unless you can give them at least 60% of your MSRP. Some big ticket items are excluded from this, but 95% of what is on the floor is bought at 60%+ margin.

We are in this depression because corporations have grown too obese to survive. The vital organs can't keep up with the heft that needs to move around. Sitting in the ICU the corporation is being kept alive by the machine of central bank printing, pumping its blod for it. Left to fend for itself the patient would die within hours.

The truth is that the patient is using up so many resources that even the healthy will die, unless someone unplugs the machine.

Wed, 07/25/2012 - 15:01 | 2650299 RobotTrader
RobotTrader's picture

Jon Corzine is now residing in the "Guest Executive Office Suite" at Goldman Sachs, F12 punching and daytrading the $27 billion he personally stole, with Brian Sack on the speakerphone giving him inside information.

Probably 4 bodyguards out in the the hallway, and he commutes to work each day in a bulletproof Bentley.



Wed, 07/25/2012 - 15:01 | 2650304 magpie
magpie's picture

I will probably short on Friday. Not that i wish to trade and profit from a London Olympics nuclear/VX poison gas/biological agent assault, but i expect the Bernank's speech to be a sell-the-news event.

Wed, 07/25/2012 - 15:03 | 2650311 Frank N. Beans
Frank N. Beans's picture

ban the bots

Wed, 07/25/2012 - 23:41 | 2651983 cynicalskeptic
cynicalskeptic's picture

How low would the volume be WITHOUT robot driven trading?      crickets......    you might even be able to hear the economy crashing from the floor of the NYSE

Wed, 07/25/2012 - 15:05 | 2650322 tahoebumsmith
tahoebumsmith's picture

Pretty soon the FED and all its Zionist cronies will be playing patty cake with just themselves. For some it might be gratifying to watch the FED back itself into a corner, however for me it has been painful as I have to wake up everyday and put on a positive face as I look my children in the eyes knowing what the the economic outcome of these failed policys is going to mean for their future. How did America ever let our future rest in such a few peoples hands? They have taken over the Government, the Senate, the Congress, the Markets, the banking system, pretty much everthing now depends on what the FED has to say and what they will do. Remember the FED is a private institution that now not only controls our money, they control everything just like they were set up to do from the beginning in 1913. America, land of the FED, not Land Of The Free.

Wed, 07/25/2012 - 15:06 | 2650323 doc_in_the_house
doc_in_the_house's picture

Fed OPPOSES, wants to keep a SUBPRIME BLACK BOX.


in Oh-STUPID, ODUMMER'S words: YOU gotta buy it and you can't find out what's in it!!

LOL !!!!! ROFLMAO !!!!

Wed, 07/25/2012 - 15:07 | 2650328 yogibear
yogibear's picture

Have at it BOT's! May the best algorithm win, which probably means Goldman Sachs.

Wed, 07/25/2012 - 15:19 | 2650400 orangegeek
orangegeek's picture

The "bull run" from October 2011 to April 2012 was plagued with low volume.  Typical of a "last leg up".


Volume returned during the April 2012 drop.  Not a sign of strength.

Wed, 07/25/2012 - 15:19 | 2650402 q99x2
q99x2's picture

Synthetic markets are made in China.

Wed, 07/25/2012 - 15:30 | 2650459 tawse57
tawse57's picture

My favourite this week was Juniper Networks forecasting sales to drop by 50% and the shares immediately rose by 8% - what the feck is going on there!?

You have to be a mug to participate in this market.

Wed, 07/25/2012 - 15:50 | 2650522 Dollar Bill Hiccup
Dollar Bill Hiccup's picture

One Share to bid them all, One Share to find them,

One Share to short them all and in the darkness bind them ...

Wed, 07/25/2012 - 16:00 | 2650558 asteroids
asteroids's picture

Starve the beast and it WILL die. If you try ti live with it, it WILL try to eat you, or worse. Your choice.

Wed, 07/25/2012 - 16:22 | 2650639 jmeyer
jmeyer's picture

Traderbots do add liquidity and with HFT don't make much difference to day traders who are looking at 1 to 5 minute charts or

tick charts with at least a 1500-2500 tick bar. Who cares whose trading as long as there's tradeable movement, especially the eminiSP ?

Bots hammer other bots in cyberspace. Fibonacci levels still count. Unless you're a psychic or trading on inside info human emotions dominate

Black boxes are designed by humans and market trading fundamentals which don't change much.

Thu, 07/26/2012 - 01:02 | 2651130 poor fella
poor fella's picture

I never saw anything mentioned about Coke on the 18th and 19th.. KO  - Look at that ridiculous chart! If that doesn't look like an algo pattern, it's time to go back to X-box.

You get the idea

I think there were a few more companies with IDENTICAL patterns! So much so that EVEN PISANI brought it up!

Do NOT follow this link or you will be banned from the site!