Just A Very Visible Fat Finger?

Tyler Durden's picture


Equities did it again - and no matter what narrative a mainstream media channel needs to comprehend the monkey-hammering that occurs every second in our 'market', it seems a fat-finger 50k block of S&P 500 e-mini futures (or around $3.3bn notional equivalent) was enough drive the nominal price index up 1% to close the day-session almost green (and rather notably right at yesterday's closing VWAP). All the highly correlated sectors of the equity market surged with them (led by Energy and leaving financials just in the red) and while Treasury yields did leak higher and EURUSD did rally, the moves were miniscule in comparison to someone's desire to own $3.3bn equivalent equity market risk into the close. Silver and Oil plunged early but recovered some into the close as stocks surged but tracked each other tick for tick for tick in general. Equities end the day modestly lower with VIX modestly higher as they saw average volume (thanks to the surge) but a drop in average trade size (algo tickler). Financials were saved by this as most recovered some of their losses with JPM limping up to close at Tuesday's closing VWAP. Credit and equity closed generally in line as IG/HY were very quiet and just being reracked along with stocks as opposed to seeing heavy flow.

The chart below shows ES along with VWAP (red) and 1- and 2-sigma VWAP bands around it. The green dotted line links yesterday's closing VWAP to today's ES close - coincidence?

It seems that there is some mirroring in the early selling and late buying pressure so we would not get too excited by the suggestion that someone knows something...

shown clearly aberrant relative to Treasuries, Gold, and the USD...


and commodities which plunged early, recovered a little on the equity surge...


Perhaps it was the 'over-reaction' of stocks relative to credit early on that spurred the late-day reaction? Though from talking to desks, credit was dead quiet and was being re-racked as opposed to 'traded' up and down...


Charts: Bloomberg

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Thu, 06/28/2012 - 16:18 | 2570847 Xibalba
Xibalba's picture

POTUS gets what POTUS wants.  see: 

Working Group on Financial Markets


Thu, 06/28/2012 - 16:20 | 2570860 Abraxas
Abraxas's picture

I have nothing to say, but I reply to the first guy so that my comment is always on the top [sarc].

Thu, 06/28/2012 - 16:32 | 2570932 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

pointless fucking comment with no style.  if you are going to be pointless, at least have style.

Thu, 06/28/2012 - 16:39 | 2570961 Abraxas
Abraxas's picture

What you said was pointless, but very stylish.

Thu, 06/28/2012 - 16:39 | 2570976 Mr Lennon Hendrix
Mr Lennon Hendrix's picture

Kind of?  I am wearing POTUS cufflinks and you say kind of?

Thu, 06/28/2012 - 16:25 | 2570896 Stoploss
Stoploss's picture


Thu, 06/28/2012 - 16:44 | 2571006 RockyRacoon
RockyRacoon's picture

If CNBC wants to remain relevant, why don't they just take 2 minutes and discuss this chart movement.  No.  We have Maria interviewing The Donald about his take on the SCOTUS decision.   No wonder they have no viewers...

Thu, 06/28/2012 - 17:36 | 2571259 prodigious_idea
prodigious_idea's picture

Why are you watching CNBC?

Fri, 06/29/2012 - 07:20 | 2572597 neidermeyer
neidermeyer's picture

Maybe because FNN isn't on anymore , American EXXXtasy isn't "workplace appropriate" and he needs some entertainment?

Thu, 06/28/2012 - 16:25 | 2570903 azzhatter
azzhatter's picture

yep, would've looked bad for Commander in thief if the market tanked on the day he compromised the SCOTUS

Thu, 06/28/2012 - 16:28 | 2570918 battle axe
battle axe's picture

Maybe Greece came to it's senses and said screw it, lets default....

Thu, 06/28/2012 - 16:39 | 2570972 Thomas
Thomas's picture

Election year shenanigans are going to get VERY old.

Thu, 06/28/2012 - 17:04 | 2571106 Bansters-in-my-...
Bansters-in-my- feces's picture

That terrorist organization you refer to as "Working Group on Financial Markets" gets to play with all kinds of dough,using a slush fund that has no oversight whatsoever and can "dabble" in gold all it wants.

Google up /do some reading on the USTreasury site what this little fund called thw "ESF" Exchange Stabilization Fund can do......

Specially the bit on gold.

It can "do you"........


Thu, 06/28/2012 - 16:18 | 2570848 LawsofPhysics
LawsofPhysics's picture

Excellent work ZH.  Looking forward to friday.

Thu, 06/28/2012 - 16:55 | 2571011 THX 1178
THX 1178's picture

I'm looking forward to July 1st when the Iran sanctions kick in. Why have I not seen more 'bout this here at ZH?

Thu, 06/28/2012 - 16:18 | 2570849 Vincent Vega
Vincent Vega's picture

It's my understanding that Brian Sack has very very very fat fingers.

Thu, 06/28/2012 - 16:38 | 2570968 pods
pods's picture

I think I heard the Keebler Elf speaking about those with wide eyes?

Elves have small backsides you know!

Poor Timmay.

Thu, 06/28/2012 - 16:40 | 2570979 Thomas
Thomas's picture

I think I heard him in the shower along with some rhythmic slapping sounds.

Thu, 06/28/2012 - 17:03 | 2571104 Translational Lift
Translational Lift's picture

Nope......The Sack is breaking in his new protege..........

Thu, 06/28/2012 - 18:20 | 2571369 NotApplicable
NotApplicable's picture

Just one more day...

Thu, 06/28/2012 - 16:17 | 2570850 Ned Zeppelin
Ned Zeppelin's picture


Thu, 06/28/2012 - 16:20 | 2570852 vmromk
vmromk's picture

The criminals in charge do not even try to mask their criminal activities any longer.

Something really serious must be lurking nearby for them not to even try to mask their criminality.

Thu, 06/28/2012 - 16:23 | 2570887 BudFox2012
BudFox2012's picture

Yeah, Depression II: Reality Strikes Back is going to bite us in the ass in the very near future.

Thu, 06/28/2012 - 18:20 | 2571372 Diet Coke and F...
Diet Coke and Floozies's picture

My guess is peak oil / growth / everything.

Thu, 06/28/2012 - 18:24 | 2571382 NotApplicable
NotApplicable's picture

Olympics start in 29 days. I'll be shocked if something doesn't happen to aggravate hostilities, given it's 2012, and all that.

Thu, 06/28/2012 - 16:18 | 2570859 john_connor
john_connor's picture

quarter end tape painting

Thu, 06/28/2012 - 16:24 | 2570895 ACP
ACP's picture

God dammit! Duh! Jesus F Christ I'm so pissed off today I totally forgot about that.

Thu, 06/28/2012 - 16:33 | 2570933 Rainman
Rainman's picture

Yup....one more trading day to go (Brian Sack's " official " last day on the job).

Thu, 06/28/2012 - 18:25 | 2571386 NotApplicable
NotApplicable's picture

I bet tomorrow he smacks the "buy" button with his erection, just to show the new guy how it feels to wield that much power.

Thu, 06/28/2012 - 18:45 | 2571428 LooseLee
LooseLee's picture

Illegal; nonetheless

Thu, 06/28/2012 - 16:18 | 2570861 realtick
realtick's picture


Thu, 06/28/2012 - 16:19 | 2570864 localpacific
localpacific's picture

me thinks its the PPT yet again....  The PPT Methodology At Work: Proven Once Again 

Thu, 06/28/2012 - 16:19 | 2570865 Frastric
Frastric's picture

Thanks Tyler! You always give a reason for the stock market madness! A reason that makes sense!

Thu, 06/28/2012 - 22:24 | 2572048 fswalker
fswalker's picture

Who gives a fuck about what's already taken place. Captain hindsight doesnt make money for either of us. Maybe if he called this drop yesterday then it would be cudos worthy.

Thu, 06/28/2012 - 16:20 | 2570866 JackT
JackT's picture

Those fat dirty fingers don't have any prints on them either. 

Thu, 06/28/2012 - 18:26 | 2571389 NotApplicable
NotApplicable's picture

Damn creepy algobots!

Thu, 06/28/2012 - 16:20 | 2570869 Cdad
Cdad's picture

Most notably, tech shares did not recover.  That's your "market" leader...and I use that word loosely.  Nice Pachinko machine.

Thu, 06/28/2012 - 16:20 | 2570872 BlueStreet
BlueStreet's picture

I'd jump out the window after that bullshit but it's so hot in Chicago I think I'll just go sit on the sidewalk and melt.



Thu, 06/28/2012 - 16:32 | 2570931 otto skorzeny
otto skorzeny's picture

just think-all that $ the consumer "saved" this winter on low nat gas bills will be pissed away on electrical bills. think the MSM will play that up?

Thu, 06/28/2012 - 16:20 | 2570873 Squid Vicious
Squid Vicious's picture

hopefully the ramp job was immediately preceded by Momo-tarder's capitulation in LULU, CMG, and UA

Thu, 06/28/2012 - 16:20 | 2570876 vast-dom
vast-dom's picture

fuck the markets! fuck bernank! fuck obummer! fuck romrad! fuck them all! no justice! no logic! just gamed fake ponzi!

Thu, 06/28/2012 - 16:24 | 2570891 bmusic
bmusic's picture

how short were you?

Thu, 06/28/2012 - 16:31 | 2570926 vast-dom
vast-dom's picture

how short? I'M SHORT THE PLANET! So yeah I'm limping when I should be doing a fucking tap dance! But my narrative holds as do my shorts and PM positions! 


FUCK YOU BERNANK! I'm gonna fucking beat you in the end!

Thu, 06/28/2012 - 16:41 | 2570983 HarryM
HarryM's picture

Maybe you will beat Berank, but you're going to have one hell of a streched asshole by then

Thu, 06/28/2012 - 16:49 | 2571040 vast-dom
vast-dom's picture

i'm already veritable life support system for my stretched asshole!

Thu, 06/28/2012 - 16:50 | 2571044 Everybodys All ...
Everybodys All American's picture

end of the world trades are never easy. I'm right there with ya though and I'm convinced I'll be right in the end.

Thu, 06/28/2012 - 16:53 | 2571065 vast-dom
vast-dom's picture

yeah man, but it's more than end of world -- it's about soberly and accurately looking at fundamentals, P/E, and other now arcane and detested valuations for what shit is really worth. at this stage we are beyond ponzified synthetic! 


my bet: my asshole will be a lot less stretched than Bernank's, in the end!



Thu, 06/28/2012 - 17:43 | 2571278 Quinvarius
Quinvarius's picture

What exactly do you expect to happen in an environment where a bank panic is impossible due to the availability of unlimited free money?

Thu, 06/28/2012 - 17:51 | 2571296 vast-dom
vast-dom's picture

you may quite easily infer what my narrative is. i could be very wrong. or QE ZIRP TWIST x JPM x UnN x Eurozone x SP 500 x R2k x all the other nonsense will eventually come crashing down. Housing mess, which is still very much in play, shot up like crazy until it shit the bed some......and i still expect housing to correct at least 20% on average.....

Thu, 06/28/2012 - 17:44 | 2571282 johny2
johny2's picture

The markets are rigged, trading them is like throwing a dice, where any number from 1-5 means you lose. 

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