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Presenting Today's 21 (At Least) Mini Flash Crashes

Tyler Durden's picture




 

Think you were the only one who could not get within 100 feet of any liquidity in today's market which bounced up and down by 5 points on any chatic whim? Think again. The day after the market saw 844 stocks trigger short-sale restrictions (meaning they dropped more than 10% in one day), not even the robots were able to pull a rabbit out of a hat and at least 21 stocks ended up flash crashing for a millisecond or much longer during today's trading session. Below are the charts of the 21 identified victims of overzealous ask-side algos, as usual courtesy of Nanex.

Random images/stocks exhibiting strange behavior on 08/05/2011:

CRP - CREDIT SUISSE GUERNSEY

QCOM - QUALCOMM

CWB - SPDR BARCLAYS CAPITAL

CHDX - CHINDEX INTL

CPV - CBS_6_3/4_%_NOTES

DRU - DOMINION RESOURCES 8 3/8 %

FCQ - FOCUS MORNINGSTAR COMM

GEG - GENERAL ELECTRIC CAPITAL

JPC - NUVEEN MULTI STRATEGY INCOME

KNOL - KNOLOGY

MER.PR.P=MERRILL LYNCH CAP TRUST III

MITK - MITEK SYSTEMS

NEE.PR.F - NEXTERA ENERGY CAPITAL

SBR - SABINE ROYALTY

VOC - VOC ENERGY

WPZ - WILLIAMS PARTNERS

XCJ - XCEL ENERGY 7.6 NOTES

ZAGG - ZAGG

AIRT - AIR T

EXLP - EXTERRAN PARTNERS

TLEO - TALEO

Source: Nanex


 

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Fri, 08/05/2011 - 17:53 | 1528377 rajat_bhatia
rajat_bhatia's picture

Focking Machines!!!!!

Fri, 08/05/2011 - 21:03 | 1528844 Doña K
Doña K's picture

Calibrated by evil men

Fri, 08/05/2011 - 17:51 | 1528379 Highrev
Highrev's picture

OEX closed green.

Fri, 08/05/2011 - 17:54 | 1528380 Spirit Of Truth
Spirit Of Truth's picture

Wonder what this will do:

 

US Braces for Possible S&P Downgrade: Source

http://finance.yahoo.com/news/US-Braces-for-Possible-SP-cnbc-2331093498.html

Notice they waited until after the market closed because Wall Street is Googled:

http://thespiritoftruth.blogspot.com/2010/10/wall-street-is-googled.html

 

Fri, 08/05/2011 - 18:12 | 1528391 Highrev
Highrev's picture

They're looking for that Monday morning panic sweet spot to buy into . . .

. . . but my preliminary read of the charts suggests that they just might get a higher open on Monday.

That won’t keep the gang from scaremongering all weekend long though.

Fri, 08/05/2011 - 17:55 | 1528383 Flakmeister
Flakmeister's picture

Umm... SBR was a steal... BTFD

Fri, 08/05/2011 - 17:57 | 1528384 Moe Howard
Moe Howard's picture

Focking SkyNet!!!!!!

Fri, 08/05/2011 - 18:07 | 1528388 Highrev
Highrev's picture

Gotta find some high school kid to optimize the images for ZH.

Fri, 08/05/2011 - 18:08 | 1528389 Mongo
Mongo's picture

Looks like robot puke

Fri, 08/05/2011 - 18:21 | 1528393 WineSorbet
WineSorbet's picture

Do HFT algos dream of electric sheep?

Fri, 08/05/2011 - 18:27 | 1528395 Dakota Thunder
Dakota Thunder's picture

I wonder if Cramer will announce the downgrade on his show tonight assuming it's taped live.

 

Fri, 08/05/2011 - 18:28 | 1528396 Rick Blaine
Rick Blaine's picture


Serious, and perhaps dumb, question...from someone who very rarely trades stock...

At this point, does anyone here really have any faith in the stock market as a legitimate means for price discovery?

That is, if ACME Co.'s stock is currently trading at $X, does $X at all reflect what real, actual investors (i.e., people) think the stock is actually worth?

...or does $X only reflect the price that SOME actual investors (i.e., people) are willing to pay only because they hope they can sell it for more later? (i.e., is this just all a "greater fool" game at this point?)

Does that make any sense?

Fri, 08/05/2011 - 19:00 | 1528430 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

Rick, I am guessing that you are new to ZH. The community has been discussing over the years about how rigged the market is. Most people here on ZH know it is a greater fool's game. Play at your own peril.

Fri, 08/05/2011 - 19:18 | 1528470 Rick Blaine
Rick Blaine's picture

Actually, I've been following ZH since pretty early in '09.  I heard Tyler on some web-radio show around then (Mish was the other guest)...and I've been hooked ever since...though much of it is over my head.

So, yeah...I completely understand that most people here think the whole thing is "rigged," for lack of a better word...

I guess I was just asking if there was ANYONE here who still had "faith" (?) in the stock market and/or DOESN'T think it's rigged?

Maybe another way to ask it this - Does anyone here, at this point, buy stock because they actually think it is "intrinsically" "worth" it's current price?  Or, is everyone buying stock only because they want to find a greater fool?

Fri, 08/05/2011 - 20:10 | 1528610 buzzsaw99
buzzsaw99's picture

ever play chess against a machine? the greater fool is the fed, aka my money and your money. morality has nothing to do with it.

Fri, 08/05/2011 - 23:58 | 1529515 HAL 9000
HAL 9000's picture

Yes we're still out here.  Take advantage of the volatility.  Buy great companies at good prices.  Buy with a Margin of Safety, sell at Intrinsic Value. Hold cash when nothing is available.  The process that I follow:

http://www.healthywealthywiseproject.com/Home/wealthy-blog/davescomplete...


Sat, 08/06/2011 - 10:28 | 1530254 illyia
illyia's picture

Da Momma still B&H and is often the greater fool (other than JQP via the FED). But even she thinks IOUSA is getting crispy around the edges...

And, Cramer.

Fri, 08/05/2011 - 18:29 | 1528399 PhattyBuoy
PhattyBuoy's picture

But it is SO beautiful ...

Fri, 08/05/2011 - 18:33 | 1528401 Seasmoke
Seasmoke's picture

has anyone invented a program that tracks every stock with a 1000 share buy ay 10% below market price......seems like a winner to me

Fri, 08/05/2011 - 18:51 | 1528409 Mec-sick-o
Mec-sick-o's picture

This just proves the arrogance of those using HFT algorithms, thay can't even put proper limits to avoid a circuit breaker trip.

The algorithm needs some room to get the margin, but needs to check if it will trip anything before betting.

Hope those circuit breaker trips make some HFT loose and take offline the damn thing, haha, bottomless, free-fall illiquid market.

Fri, 08/05/2011 - 18:52 | 1528419 doomandbloom
doomandbloom's picture

and they still call this trading?

 

trading is dead...has been for a while...this is software engineers looting....

Fri, 08/05/2011 - 18:53 | 1528420 disabledvet
disabledvet's picture

I did that 40 years ago when i was 6 years old. I called it my "ma i want another lollipop" sub-routine. It was inserted inside a larger program/tirade called "feed me or else."

Fri, 08/05/2011 - 18:57 | 1528425 Everyman
Everyman's picture

At what point does the SEC and Fed and all the rest of the financial regulators say to themselves:

 

"I can't look the other way any longer, it is just TOO obvious and TOO corrupt, and somebody needs to start going to jail for market manipulation."

 

At what point?  Do these fetid and festering pieces of human filth even have a clue, conscience, ethics anymore?????

Fri, 08/05/2011 - 19:02 | 1528435 Vampyroteuthis ...
Vampyroteuthis infernalis's picture

They will say that when everyone who is honest has been driven into bankruptcy.

Fri, 08/05/2011 - 18:59 | 1528428 Lone Deranger
Lone Deranger's picture

Trading the ES today was a pretty wild ride. Some of my fancier indicators became useless.  Ironically I ended up going back to some pretty basic tools like triple MA crossovers, and was able to eek out a few points.

Even with that, exaggerated swings and pull backs.  I ended up shorting the intraday H&S pattern that showed up midday, and did okay.  Even though there was profit, I was a bit stressed out watching the position whip around like it did.  Quite a similar feel as Oct-08.

Fri, 08/05/2011 - 19:01 | 1528432 Rick Blaine
Rick Blaine's picture

Different subject - Larry Kudlow is reporting that a downgrade for the U.S. may happen as early as tonight...

He claims that the White House may already know for sure that it is going to happen in the very near future...

Fri, 08/05/2011 - 19:11 | 1528461 Diablo
Diablo's picture

CNN: S&P served notice it planned to downgrade U.S. AAA rating but is reconsidering, a senior administration official says. 

Fri, 08/05/2011 - 19:18 | 1528472 mrdenis
mrdenis's picture

another crash all around the same time 9:54 PPT from 6 to 5.43 ...this closed rnd fund usually has a range of 4 to 6 cts 

Fri, 08/05/2011 - 20:04 | 1528596 Use of Weapons
Use of Weapons's picture

I know I've made some very poor decisions recently, but I can give you my complete assurance that my work will be back to normal. I've still got the greatest enthusiasm and confidence in the mission. And I want to help you.

Fri, 08/05/2011 - 20:59 | 1528822 Black Friday
Black Friday's picture

 

It looks like a Skittles commercial:

"Taste the rainbow."

Fri, 08/05/2011 - 21:30 | 1529002 Buck Johnson
Buck Johnson's picture

It's getting harder and harder for the Algo's to operate in an atmosphere of make believe.

Fri, 08/05/2011 - 23:40 | 1529471 drawswell
drawswell's picture

"Open the pod bay door. Hal..."

"I'm sorry, I can't do that Dave..."

 

Sat, 08/06/2011 - 02:26 | 1529793 Mec-sick-o
Mec-sick-o's picture

"Hal, I won't argue with you anymore! Open the doors!"

 "Dave, this conversation can serve no purpose anymore. Goodbye." 

Sat, 08/06/2011 - 04:51 | 1529909 Fallschirmjaeger
Fallschirmjaeger's picture

Please pardon my foolishness but I kindly ask why no CEO, CFO or quoted company board member gets angry at his / her company stock treated like this ...

I just would be MAD, MADDER and MADDER.

Awaiting for a kind reply ... thanks, FSJ

Sat, 08/06/2011 - 06:46 | 1529974 DavidC
DavidC's picture

Because they don't know, and because no-one at the SEC has the knowledge or ability (position or desire-wise) to actually look at the instability that the HFTs have created.

HFTs are great on the way up, chasing momentum and raising prices, not so great on the way down when they HFT:STOP.

DavidC

Sat, 08/06/2011 - 09:07 | 1530113 snowball777
snowball777's picture

I found the exhibit to be a little monotonous and the Chardonnay was pedestrian...hey, is that David Byrne?

 

Wed, 09/14/2011 - 04:53 | 1667436 chinawholesaler
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