Mini Flash Crash Following CDU Statement Eurozone Leaders Have Excluded Boosting Volume Of EFSF Sends ES Down 30 Points

Tyler Durden's picture

After soaring by over a hundred points, the DJIA subsequently plunged in a flash crash type move after Reuters carried headlines saying that the CDU budget expert said that the Eurozone leaders have clearly excluded boosting the volume of the EFSF (and the plunge has nothing to do with any ridiculous rumor of an S&P downgrade - the S&P would be sent into exile if it dared to defy Obama at this point in his debt ceiling hike victory lap). The plunge was further exacerbated by a previous interview on CNBC with Olli Rehn in which he was pressed for details on the EFSF which he naturally would not provide as obviously Germany is still not onboard. And as everyone knows, without a €1.5 trillion expansion in the SPV monetization mechanism known as the EFSF, Italy is doomed. The result: a 30 point plunge in the ES showing once again that when it comes to flash crash risk, it is once again all about Italy and insolvent Europe in general.

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Thorlyx's picture

Always count on these clowns to move the market !

scatterbrains's picture

for real, I visualize them sitting around smoking cigars laughing and plotting ways to panic this sovereign or panic that sovereign, all the while playing the game with money they create out of thin air... *and  now the berstank does the chinaman one better by approaching the printer with a single cartwheel, double Pirouette,  left handed, reverse tap of the print button to the applause of the fiat gods..bravo bravo* all the while the put/call ratio spikes and the sheeple dump their shares into the groups hands.

ZeroPower's picture

Yes rumor was ridiculous - no man at S&P has balls enough to downgrade the Motherland.

pods's picture

I wouldn't touch this market with a Robo's money.


GeneMarchbanks's picture

That is a terrible thing to say. I'd buy wineries in Argentina with his money, Leo said it's time.

Thorlyx's picture

Does that mean I should sell my chinese solars ?

karzai_luver's picture

You COULDN'T touch this market with a Robo's money,




FunkyMonkeyBoy's picture

It was a sad day when they let bots trade on the markets. You can't trade with or against machines.

InconvenientCounterParty's picture

Algos are correlated near 1.0.

If you believe reality is correlated 1.0, then then you truly have no opportunity to profit from capital markets.


swissaustrian's picture

How many puts did the cdu buy before?

schismjism's picture

flash! a-ha! you saved everyone of us!

Jason T's picture

Rudy Havenstein!!!!!!!!!!!!!!!!!!!!!!!!!!!

Boilermaker's picture

Now back to our regularly scheduled forced rally on shit news.

Spitzer's picture

All good for the Euro currency itself, and not for the bond holders.

King Euro

Ben Bermonkey's picture

CDU leaders playing ping-pong, not bad. haha

the not so mighty maximiza's picture

must repromming those cells, those spreadshhets must look good.

hedgeless_horseman's picture

...obviously Germany is still not onboard.

Come on Angela!  It could be made into a monster, if we all pull together as a team.

fuu's picture

I was listening to "Welcome to the Machine" when I read your post. Where in my office are you hiding?

GeneMarchbanks's picture

I'm pickin up what you're puttin down. Pink Floyd... a lot of 80s references today.

fuu, I was listening to A Momentary Lapse of Reason just a day or so ago. It was all better with Syd imho.

Shitters_Full's picture

Enjoy that cigar, HH.  By the way...which one's Pink?

machineh's picture

As Jim Rogers used to say, surely there is some kind of fee we can pay to resolve this matter.

What's €1.5 trillion between friends? 

DCon's picture

The European Failed State Fund is a myth. It has no cash and the States that are guaranteeing it are broke..


German politicians are calling for Merkel to come back from her holiday. Fat chance.





writingsonthewall's picture

TOO MUCH INFORMATION - I cannot keep up!


I'm still laughing at this 'intervention'

Is it just me or does anyone else find it funny that 10 trillion Yen only buys you about 2 days relief these days?


They need to find something a little stronger than the feather they're trying to stop this steamroller with!


Boilermaker's picture

Phew, they've got the SPX and DOW back in the RAMP THE SHIT OUT IF slot.

All better now.

Tic tock's picture

The 'bots are programmed to love their owners - but they think. It might not be fair, but the bots are the imperfect tool used to oppress us slaves; if weren't for 'bots, we'ed be be oppressed some other way.

Cdad's picture

Sustained selling in individual retail names that are extended.  Source of funds.

Sustained selling in basic material let up yet...even in names that have been obliterated [coal] which are probably good buys for a bounce back.

The algos are just mental EVERYTHING as one.  One day, they will shut down the room with the co located computers next to where Duncan Niederauer takes his afternoon constitutional.  This and tens of thousands of banker pink slips...and maybe we can begin the long road back to capital formation in the worlds largest capital markets.

Barring that, and the "joyous" NFP report aside, we are all still just as fucked as we were last night...last year...etc...

Good grief.



SheepDog-One's picture

We've ONLY had +250 points worth of total market swings positive to negative back to positive all in the first all totaly calm!

Cdad's picture

Every day, the criminal syndicate Wall Street bankers take us closer to total oblivion through the destruction of the market's credibility.  Today...a prime example.

That the SEC continues to fail to address HFT and the co located computers is another day of market credibility death.  Everyone currently working at the SEC needs to be terminated, and unemployed Average Joes need to be hired...regardless of their professional background.  Purge the corruption.  

And pull the license at the BlowHorn.  The insidiousness of people like Joe Teranova, the Najarian brothers, Cramer [with his perpetual upside down calls]...the whole lot...they all need to go.  That COMCAST has also failed to act is ridiculous beyond belief...and I still believe that stock is a short until such time as redress is made.

Add to this the need to pull Ben Bernanke from the Eccles building.  Mail out tens of thousands of banker pink slips.

Do these things, and Average Joe can start to get a little bullish on America again.  Until then...sell and continue the revolution of the closed wallet. 

augie's picture

it's a friday. can't have a down friday, Dat's bad fo bin'ness. i held through 1330 i can hold through a retest of 1230.

augie's picture

I'm not dead yet! I want go for a walk!

dwdollar's picture

Commence meltup to squeeze shorts.

Bam_Man's picture

"We need more bailouts, dammit!"

Arch Duke Ferdinand's picture

Why Speculators Should Sell Their Gold Now

Four Factors That Could Stall Gold’s Price Rise...

OT: hilarious 2 min video When Everything is impossibly upside down...

LoneStarHog's picture

Get ready for the PPT-generated Obama He Gonna Make Him A Speech Rally, while dumping worthless paper derivatives in the gold/silver markets, since the physical London market will have just closed and the gold PM Fix will be complete. Timing is everything. Right, Messiah?

WoodMizer's picture

Looks like the PPT cant find the resources to juggle knives this morning.

Bob's picture

It's looking like a greased pig contest so far.  Got him  . . . lost him . . . got him . . . lost him . . .

Something tells me the HFT's are gonna be eatin' pork tonight, though, one way or the other, whether it's theirs or yours. 

SheepDog-One's picture

And as usual Obama speech is good for -100 DOW points every time.

bam_son's picture

The term "flash crash" is grossly over used.  Yes it is very likely to happen again but this was NOTHNIG like a flash crash type move.  This was just a well deserved move down, big deal. There was not the chaos and disappearing markets that were present during the real flash crash.  Tyler, don't start being like the MSM and throwing undo fear out there.

dwdollar's picture

Maybe I'm wrong, but I believe it's defined largely by its time interval.

topcallingtroll's picture

Undue fear

Good point though

search's picture

They're still fretting, a sledgehammer says the weilder thinks only a sledgehammer will suffice. Self fulfilling? i think we're far beyond that

franzpick's picture

FTSE has gone from down 2% pre-NFP to unch'd to back down 2.4%

I'll WAG DJIA close down 100 - 200.

oogs66's picture

why do they bother calling it EFSF.  It all comes down to Germany deciding to throw more money after bad.  France is all in because it's banks are screwed.  Holland will do as told.  It all comes down to Germany,

machineh's picture

See you at the 'D-marks only' beer tent at Oktoberfest. Back by popular demand ...

topcallingtroll's picture

Ouchy! I did catch a falling knife yesterday at close, but so far merely a flesh wound.

EWZ has a yield of 5 1/2 %
They have hardly any mortgage debt, a growing economy and sovereign debt less than 60 percent of gdp. Cut off my other leg now.

Cursive's picture

So, Priceline's profit doubling isn't going to save this market? Somebody remarked the other day that we have soveriegn problems, but the corporations are strong. What good are corporate profits when the money is no good?

dwdollar's picture

Corporate profits will be real when the government is no longer manipulating markets.  Until then, it's nothing but transient delusional hopium.  Anyone who argues otherwise is a shill.

Corporate leaders don't even believe their 'profits' will last.  Otherwise they'd be expanding and hiring.


walküre's picture

Thanks for setting that straight. It was a crash of some sort, some big money moved quickly out of the market.

Now, where do we go from here? I was prepared to trade the relief or upswing this morning. Maybe this time is still good to short?

SheepDog-One's picture

I dont know how one trades the 'Cuckoo's Nest', but good luck.