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SkyNet Wars: How A Nasdaq Algo Destroyed BATS

Tyler Durden's picture




 

Following the May 2010 flash crash, the investing public hoped that as part of its "exhaustive report", the SEC would find and hold responsible the various components of a broken market structure, be it HFTs, ETFs, stubbing and sub-pennying algorithms, and all the other knowns and unknowns we have covered over the years. Instead, in what would prove to be a move of cataclysmic stupidity (if sadly understandable - the SEC, like everyone else "in charge" is used to dealing with a gullible and simplistic public, which has no access to the real data and analysis, and whose opinion could be easily manipulated, at least until now), the regulator blamed and scapegoated it all on a Waddell and Reed trade (we wonder just what the quid pro quo was to get the asset manager to roll over and take the blame despite protestations to the contrary, at least in the beginning). The result was that the same investing public realized that market structure is so corrupt, and so robotically mutated, there is no place for the small investor in this broken market. Last week's BATS IPO fiasco merely confirmed this. And as usual, BATS (whose chairman Ratterman has just been demoted even as he stays on as CEO) decided to take the "passive voice" approach and blame it all on a faceless, emotionless, motiveless "software glitch". Just like that perfectly innocuous BSOD we have all grown to love and expect any minute. Only it wasn't. To get to the bottom of what really happened, in a world in which the SEC is far more interested in finding the latest discount internet porn stream than actually protecting the small investor, we relied on our friends from Nanex, who have time and again proven to have a far better grasp of what it is that really happens in the market than virtually anyone else. And if Nanex' interpretation of events is correct (spoiler alert - it was not a "software glitch") it takes SkyNet wars from the silver screen and to a trading terminal near you. What happened is that a malicious, 100% intentional Nasdaq algorithm purposefully brought BATS stock to a price of 0.00 within 900 millisecond of the company's break for trading! This is open SkyNet warfare.

The fact that the BATS exchange itself halted just prior to break only facilitated this (and could potentially be a case of malicious sabotage). But one thing is clear - as the data below shows, there is no doubt that an Intermarket Sweep Order originating on the Nasdaq exchange was unleashed to make a mockery out of BATS. It succeeded, and in doing so may have destroyed not only BATS chances for going public, but ultimately ruined the firm's credibility. Who would stand to gain from this? Why exchanges such as Nasdaq and NYSE of course, which already are scrambling for revenue, and in the aftermath of the failed Deutsche Boerse merger, it means that any dirty trick in the book to extend and pretend is now fair game. Such as the algo that crashed BATS.

We fully expect that in keeping with its galactic stupidity of yore, the SEC will do nothing to address this situation which is nothing short of exchange warfare using rogue and malicious algorithms as agents of war. Further, in doing so, it will once more destroy any latent "credibility" that the stock market may have created with the retail investor following the 4 month ridiculous and centrally planned melt up (we doubt there is much faith to lose - as we pointed out last week, Joe Sixpack no longer wishes to be the big boys' patsy). Oh well - if the market and its regulators wish to make "investing" solely a provenance of central banks, ultra fast algorithms, and Primary Dealers, so be it. They can play in their sandbox all they want. Just don't expect the trillions in "money on the sidelines" but mostly in savings accounts, where it may earn 0% interest, but at least it won't be vaporized courtesy of some vacuum tube, to ever come back to stocks. Ever.

As for the forensic reconstruction of what truly happened to BATS, below we provide a spreadsheet (the excel can be downloaded here), of every single trade post the BATS IPO.

 

In Nanex' own words:

Start at line 192 -- these weren't stale quotes from Nasdaq by any means. These were highly accurate and precisely updated quotes from a sophisticated algorithm programmed to take BATS's price to 0. You can see the BATS trades just before the algo on Nasdaq starts up. In other words, after the BATS trades print, everything is fine (except of course for BATS' system). Nasdaq's system is just fine. So is CQS (the SIP). That algo did its job with the precision of a master watch maker.

 

The data and charts make this abundantly clear. The trade(s) that shut down Apple would be considered stale/bad quotes. But not those 500+ trades on Nasdaq.

Nanex' verdict:

It had to be someone who's machines are directly connected to Nasdaq because they used Intermarket Sweep Order orders.

And visually:

Look at the timing! There are many quotes lasting less than 1/10,000 of a second in there! (10 quotes/millisecond). And note the almost perfect 45 degree line in log-scaled blue line below.

 

Had to be from same algo. Way too perfect. Way. Too. Perfect.

 

If BATS' system hadn't failed, this algo would have likely been obscured.

Alas, BATS did fail, and the result was last week's epic embarrassment for BATS which already cost the CEO his chairmanship, and the firm hundreds of millions in fresh equity, but also which destroyed any hope that the retail investor may be coming back to what is now a permanently and terminally broken market.

 

*  *  *

And For the chart porn addicts, here is a step by step forensic view from Nanex of how a stock exchange is permanently prevented from going public.

 

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Tue, 03/27/2012 - 20:36 | 2296068 death_to_fed_tyranny
death_to_fed_tyranny's picture

FUCK THE STOCK MARKET! LOSE! LOSE! BUY PHYSICAL METALS!

Tue, 03/27/2012 - 20:43 | 2296084 SHEEPFUKKER
SHEEPFUKKER's picture

BATFUKKER

Tue, 03/27/2012 - 21:02 | 2296118 Decolat
Decolat's picture

holy jesus what are these goddam animals

http://www.youtube.com/watch?v=F8gAtTxWhUY

Tue, 03/27/2012 - 21:11 | 2296136 HoofHearted
HoofHearted's picture

 

What happened is that a malicious, 100% intentional Nasdaq algorithm purposefully brought BATS stock to a price of 0.00 within 900 millisecond of the company's break for trading! This is open SkyNet warfare.

kind of like what Blythe does to the PMs???

Tue, 03/27/2012 - 21:27 | 2296160 nope-1004
nope-1004's picture

100% rigged casino.  Why anyone "trades" this farce of a ponzi is beyond me.

Banksters can't produce anything, therefore the only earnings to be had are by outright theft.

Nice life.  Wonder what comes at the end of it?

 

Tue, 03/27/2012 - 21:56 | 2296213 DormRoom
DormRoom's picture

If markets signified in 1010s can be hacked, what happens when the ultimate cascading flash crash occurs.  How epic would it be for a red screen of death on every bloomberg terminal. Can't wait for that black swan to unfold its wings.

 

In the next civilization they will talk about the tower of babel and the HFT black swan when refering to man's hubris of reaching God.  Or in quant speak: the Truth.

Tue, 03/27/2012 - 23:44 | 2296405 Zipf
Zipf's picture

Can an expert explain the mechanics of ISO orders? Help!

Here's my guess: an ISO order order is placed with exhcange Q for 1000 shares, but only 900 are available at the NBBO, spread across 3 exchanges as per reg NMS.  The 900 get filled at the inside price at the various venues (plus the routing fee) and then (??) does the originating exchange get some discretion in filling the remaining 100 shares across markets?  Where does an SOR fit into all this?

I suspect two bots at play here.  One sets the NBBO, the other sells.  The nbbo drops seeing the Ask hit. The other sees the momentum, and hits the ask again. A two-player feedback loop.  The funny thing is that most bots turn "on" after a day of trading for lack of stats.

BATS says the problem was in the auction mechanism, but the above looks like a problem in circuit breaker logic.

 

Wed, 03/28/2012 - 01:27 | 2296527 Oh regional Indian
Oh regional Indian's picture

Zip, the actual mechanics of this hardly matter anymore.

All the HFT traders know, full well, that Nanex will be all over suspicious trades. They cannot be hidden. Clearly "law" applies differently here and now. But your honor, the machine became self-aware, what could I do???

We are in a terminal (BOOMBERG TERMINAL) situation. Co-located computers went live in India a few months ago. No one is even talking about it here. 

It's BOTwars and we are all best off being spectators. 

Get heavy folks, digital paper burns real easy.

ori

/the-age-of-machines/

Wed, 03/28/2012 - 02:36 | 2296582 The Big Ching-aso
The Big Ching-aso's picture

 

 

No one's going 2 jail. That means they're still cheating & stealing. That's why I'm out of the market.

Wed, 03/28/2012 - 03:38 | 2296615 Oh regional Indian
Oh regional Indian's picture

Egg-zactly Big Ching. 

It does make for good spectator sport though, especially from a  vantage point like ZH and comments.

ori

Wed, 03/28/2012 - 12:59 | 2297711 smiler03
smiler03's picture

Yet more evidence that the US is just about winning "The Most Corrupt Nation on Earth" award. I think Nigeria may be 1st place, just.

Wed, 03/28/2012 - 05:52 | 2296663 Its_the_economy...
Its_the_economy_stupid's picture

"get heavy"

I like it! Gold IS heavy.

Gonna use it. Thanks.

Wed, 03/28/2012 - 00:11 | 2296439 AldousHuxley
AldousHuxley's picture

history has shown that there is nothing that cannot be hacked.

 

also, interestingly....

Babylon is 50 miles from Baghdad, Iraq

Wed, 03/28/2012 - 00:25 | 2296450 LetThemEatRand
LetThemEatRand's picture

And still the dark stain spreads between
Their shoulder blades.
A mute reminder of the poppy fields and graves.
And when the fight was over
We spent what they had made.
But in the bottom of our hearts
We felt the final cut. 

Wed, 03/28/2012 - 00:45 | 2296474 AldousHuxley
AldousHuxley's picture

www.youtube.com/watch?v=O8g2Fr7A6-c

 

Doomsday Preppers National Geographic series

 

  • hippies bought underground rocket launch cave designed to withstand direct nuclear attack
  • old men made a survival cave out of school buses
  • retired ex marine prepping greenhouse and "spider holes" all over the place

 

I think market bottom is in. doomsday stuff has gone main stream. time for contrarian play and buy some calls.

Wed, 03/28/2012 - 01:25 | 2296524 Things that go bump
Things that go bump's picture

Show trials and boiled hemp is my guess.  

Wed, 03/28/2012 - 02:29 | 2296578 eatthebanksters
eatthebanksters's picture

YOU'LL GET BETTER ODDS IN VEGAS...

Wed, 03/28/2012 - 07:29 | 2296724 DavidC
DavidC's picture

"Nice life. Wonder what comes at the end of it?"

A crash.

DavidC

Tue, 03/27/2012 - 21:04 | 2296121 Triggernometry
Triggernometry's picture

Damn it Nanex, you're chart porn is so dirty good...

Wed, 03/28/2012 - 04:56 | 2296640 putaipan
putaipan's picture

i concur.  now, if it the folks at the sec were as into it as tranny midget lesbians....

Tue, 03/27/2012 - 22:39 | 2296301 ACP
ACP's picture

Less than one second is probably a world record for destroying your competition.

If the SEC doesn't give a shit, Hell, time to get hooked up and fuck with people.

Wed, 03/28/2012 - 00:48 | 2296477 Terminus C
Terminus C's picture

Oh, they will care if YOU do it.

Wed, 03/28/2012 - 01:08 | 2296486 ACP
ACP's picture

IF I do it contrary to their ultimate objectives...

(which are commodities down, overpriced stocks up)

I think it's time for a "World's Baddest Ass Algo" competition.

Goal: Who can ramp AAPL to $1000 a share the fastest.

Winner gets a seat in Congress.

Last place is Jon Corzine's lawyer's personal assistant.

Who's IN???

 

Wed, 03/28/2012 - 07:03 | 2296708 j0nx
j0nx's picture

Anyone who bought silver or gold in the past 12 months has had their fucking asses handed to them. I bought silver this time last year for $39 plus spot charge and have lost my ass on that purchase. Thankfully I bought it to have to trade if TSHTF and not to make money on. There is no safe harbor now in metals or paper. Shit is wayyy too manipulated and volatile in metals to make it a good investment for anything other than the very long game and for hedging against total economic destruction in which it will probably do you no good anyway because you'll be too busy fighting for your life in this multi-cultural utopia that liberals have created for you.

Wed, 03/28/2012 - 08:11 | 2296782 johnQpublic
johnQpublic's picture

you should have dollar cost averaged from around eight bucks...my dollar cost average is right around 17.50 an ounce

and thats not counting the paper silver which sold itself at 45 bucks while i was on vacation

which i bought back at 27.45

physical for an uncertain future and some paper to play with

(because i like gambling and the closest casino is lame)

Tue, 03/27/2012 - 20:36 | 2296069 Atomizer
Atomizer's picture

Nice overview Tyler. Wonder how Facebook IPO will look.

Tue, 03/27/2012 - 20:43 | 2296085 Stoploss
Stoploss's picture

I have the new ticker..

 

FAD

Tue, 03/27/2012 - 22:07 | 2296240 GAAP is crap
GAAP is crap's picture

'Wonder how Facebook IPO will look.'

 

Are you suggesting this may happen to Facebook in an IPO?  That would be messing with the CIA's playground. 

Tue, 03/27/2012 - 22:53 | 2296335 Atomizer
Atomizer's picture

If retail is not playing, Wack a mole becomes the only alternative.

Looky SEC, new Youporn releases to cream your cubicle mates piehole.

Wed, 03/28/2012 - 02:31 | 2296580 eatthebanksters
eatthebanksters's picture

This is the CIA's playground...and the NSA and....

Wed, 03/28/2012 - 03:19 | 2296607 ChrisFromMorningside
ChrisFromMorningside's picture

Mossad.

Wed, 03/28/2012 - 03:49 | 2296621 JOYFUL
JOYFUL's picture

End the ZOG....

 partial listing of identified Mossad agents along with their dates of birth. They do not have American Social Security numbers and do not pay American taxes.

Gadi Regev 12/17/1975
Betzalel Yanay 9/4/1978
Eyal Artzel 5/27/1977
Sharon Rotem 8/12/1977
David Susi 1/9/1975
Dana Sasson 8/10/1980
Morin Biton 7/14/1980
Gilad Lifschitz 9/17/1978
Maya Maimon 12/26/1978
Marco Fernandez 4/13/1977
Keren Touyz 8/20/1978
Nofar Bahidi 21/2/79
Michal Gal 8/10/1979
Ophir Baer 11/11/1956
Dilka Borenstein 3/15/1979
Michael Calmanovic 9/6/75

http://occultsecrets.weebly.com/1/post/2010/02/public-service-announceme...

Tue, 03/27/2012 - 20:37 | 2296072 francis_sawyer
francis_sawyer's picture

"Just like shootin' WOMP RATS eh kid?"

Tue, 03/27/2012 - 21:31 | 2296178 POpatriot
POpatriot's picture

If an algo can manipulate a stock with such ease why would the programmer want to make it so obvious?  At least be discrete about it and try to have it go on for the next 30 years to keep the gravy train rolling.

Tanking BATS only draws attention.  If you can manipulate the market why would you want that?  Something went wrong here and someone royally screwed up.  How hard is it for the SEC to see where the quotes are coming from? 

Tue, 03/27/2012 - 22:00 | 2296235 Dr. Engali
Dr. Engali's picture

You're assuming the SEC will even begin to look. Shit they probably don't even know where to begin to look. It will be swept away like MF Global.

Tue, 03/27/2012 - 22:26 | 2296274 tickhound
tickhound's picture

The SEC serves an important function in the system... It's there to make sure you never get to see too much.  It protects the system more than it will ever protect 'us'... Vital to any scheme, particularly once the sceme turns desperate.

It is the 'necessary' buffer between 'us and them.' 

Wed, 03/28/2012 - 07:08 | 2296709 old naughty
old naughty's picture

Haven't you heard? Nothing is needed to be hidden in plain sight anymore.

So what if a few IPO failed; or a few cronies dumped; its all part of the game, played according to the agenda.

They dare you cannot touch them.

Tue, 03/27/2012 - 22:11 | 2296245 reading
reading's picture

I think they made the point that had the system not failed just prior to the algo it would have remained obscured...it wasn't supposed to be visible. Good luck getting the SEC to look, that isn't the kind of chart porn they are into.

Tue, 03/27/2012 - 22:11 | 2296247 reading
reading's picture

I think they made the point that had the system not failed just prior to the algo it would have remained obscured...it wasn't supposed to be visible. Good luck getting the SEC to look, that isn't the kind of chart porn they are into.

Tue, 03/27/2012 - 22:16 | 2296256 POpatriot
POpatriot's picture

So which party do you think screwed up?

Wed, 03/28/2012 - 07:15 | 2296713 Koffieshop
Koffieshop's picture

Does it matter? Anybody who is running HFT shops to fat-finger the market is a criminal. Whether or not they screwed up and crashed something is secondary.

Tue, 03/27/2012 - 22:36 | 2296299 tekhneek
tekhneek's picture

Wouldn't it blow if he started with x-- instead of x++ and that's what fucked this whole thing up?

Tue, 03/27/2012 - 23:48 | 2296408 PC Load Letter
PC Load Letter's picture
I must have, I must have put a decimal point in the wrong place or something. Shit. I always do that. I always mess up some mundane detail.
Wed, 03/28/2012 - 00:30 | 2296456 deth
deth's picture

yeah...

Wed, 03/28/2012 - 00:31 | 2296457 thatthingcanfly
thatthingcanfly's picture

I sentence you to 20 years in a federal pound-me-in-the-ass penitentary.

Wed, 03/28/2012 - 01:56 | 2296550 greensnacks
greensnacks's picture

This looks vaguely familiar to the Focus Shares ETFs launched about a year ago. It's as if someone doesn't like competition. Same deal. New product launches and the first few trades tank the security 98% ... times 10.

 

ETFs plunge triggers ‘flash crash’ memories

By Agency Reporter   Saturday, 2 Apr 2011

Ten new exchange-traded funds briefly plunged early Thursday before the trades were canceled, triggering memories of last year’s “flash crash.”

According to a report by Bloomberg, Nasdaq OMX Group Incorporated said it cancelled trades in 10 new ETFs sponsored by Scottrade affiliate FocusShares, some of which plummeted by as much as 98 per cent at one point.

The new FocusShares ETFs started trading on Wednesday and are trying to compete with more established funds by offering lower costs for broad-market ETFs.

Regulator-mandated trading pauses that aim to protect the securities and investors from trading errors cover thousands of stocks and hundreds of ETFs, but were not in place for the new products.

They were originally put in place after nearly $1tn in market capitalization was wiped away in a few minutes on May 6.

“I certainly don’t think this should shake investor confidence because it is such a small glitch compared to the flash crash,” associate professor of finance at Georgetown University’s McDonough School of Business, Mr. James Angel, said.

“But it is a warning that all technological systems eventually break in some manner, and we should be prepared for when they do.”

Angel noted “something went wrong” with the new ETFs, which are not among the securities covered.

Nasdaq OMX cancelled trades in all of the ETFs that were more than 10 per cent lower in price than where they trading previously, calling them “clearly erroneous.”

A FocusShares spokeswoman said a mispricing by a market maker triggered the faulty trades.

The Focus Morningstar Healthcare ETF fell as low as 60 cents after trading as high as $25.33, while the Focus Real Estate ETF dropped to $1.48 from $25.50.

http://archive.punchontheweb.com/Articl.aspx?theartic=Art201104022244018

 

Wed, 03/28/2012 - 03:42 | 2296618 ChrisFromMorningside
ChrisFromMorningside's picture

I love how they always bring out some stupid shill from a business school to remind everyone that everything is just fine, nothing to see here.

Not the first nor the last time we see an algo like this strike.

Tue, 03/27/2012 - 20:38 | 2296074 nestle
nestle's picture

all I see are some lines, little triangles and a few circles.

All seem very bullish for AAPL.

Tue, 03/27/2012 - 21:11 | 2296135 UP Forester
UP Forester's picture

For some reason, it's a lot scarier looking than AsteroidsTM....

Tue, 03/27/2012 - 20:38 | 2296075 Jason T
Jason T's picture

.. I could drop a stock just to BURN YOU OUT!!  

What movie? : )

Tue, 03/27/2012 - 20:40 | 2296078 francis_sawyer
francis_sawyer's picture

Come on man!!! Dig deeper...

Wed, 03/28/2012 - 00:58 | 2296489 WestVillageIdiot
WestVillageIdiot's picture

I still think Daryl Hannah was incredibly miscast.  She is not now, never was, and never will be hot.  Making her the object of male drooling makes about as much sense as they were trying to put forth the hatchet faced Geena Davis as a sex object.  I can walk down 3rd Avenue at noon and find 10 girls hotter in 2 minutes.

Don't even get me started on Cameron Diaz.  Who the fuck did she blow to get where she's at?

Tue, 03/27/2012 - 21:20 | 2296144 Money 4 Nothing
Money 4 Nothing's picture

The destruction of Lehman Brothers movie?

That one chart strikes me as how some day, the Dow will walk down to 6K in a matter of minuits and blow out stops and telephones alike all at the same time. Napalm scortched earth style.

Wed, 03/28/2012 - 11:48 | 2297470 ParkAveFlasher
ParkAveFlasher's picture

right, and in the downward-sucking commodity paper vortex to follow all the remaining fizz out there is syphoned up and the whole deck of ownership reshuffled for the next global paradigm.  STACK WHILE YOU CAN.

Tue, 03/27/2012 - 21:48 | 2296207 streetcrawler
streetcrawler's picture

Sir Larry Wildman. Like all Brits, he thinks he was born with a better pot to piss in.

Wed, 03/28/2012 - 01:00 | 2296491 WestVillageIdiot
WestVillageIdiot's picture

How many douche bags has the queen knighted over the years?

/rhetorical

Tue, 03/27/2012 - 20:39 | 2296077 Catflappo
Catflappo's picture

Shame BATS didn't have an algo 'doing the opposite'.    That would have led to quite a shit-fight !

Tue, 03/27/2012 - 20:57 | 2296112 DeadFred
DeadFred's picture

BATS is still around. What's the chance they go for revenge? Perhaps it's time for some very deep puts, they're virtually free.

Tue, 03/27/2012 - 21:49 | 2296209 Dr. Engali
Dr. Engali's picture

I'm thinking the same think.

Tue, 03/27/2012 - 23:31 | 2296392 Zero_Sum
Zero_Sum's picture

Nahh, you miss the point. Immunity isn't equal here. BATS is clearly not in the favor of TPTB. If they retaliated, the SEC would crucify them at the behest of those in power. All in the name of justice and transparency, of course.

 

You really think that the folks at BATS didn't know why this had happened within 2 hours of the event? And yet the chairman is taking the hint and stepping down. They were told "stay quiet, and we may let you limp along. Retaliate or complain too loudly, and you're done".

Wed, 03/28/2012 - 01:02 | 2296494 WestVillageIdiot
WestVillageIdiot's picture

Are we talking about Billy Bats?  Didn't they beat the shit out of him at The Sunset Lounge in Queens in '70? 

I think that mutt dented Robert DeNiro's shoes.  Fothermucker.

 

Tue, 03/27/2012 - 20:40 | 2296079 Schmuck Raker
Schmuck Raker's picture

Obama's fault. And bullish.

Tue, 03/27/2012 - 21:14 | 2296138 Money 4 Nothing
Money 4 Nothing's picture

Obama is Bush's fault..

Tue, 03/27/2012 - 21:48 | 2296206 Dr. Engali
Dr. Engali's picture

Bush is Clinton's fault.

Tue, 03/27/2012 - 21:58 | 2296218 Money 4 Nothing
Money 4 Nothing's picture

Monica Lewinski was Clintons fault. Or was it Clintons cigars fault?  

Tue, 03/27/2012 - 23:21 | 2296372 palmereldritch
palmereldritch's picture

San Andreas is California's fault

Tue, 03/27/2012 - 20:42 | 2296083 Boilermaker
Boilermaker's picture

My heart fucking bleeds for those poor souls.

Who gives a shit at this point?

Tue, 03/27/2012 - 20:53 | 2296105 seek
seek's picture

It's actually important to give a shit, because this stuff reveals the internals of the "market," and with it, what state the financial world is in, which lets us determine how many minutes are left on the global financial doomsday clock.

So they are open and notoriously sabotaging competitors, no more of the subtle BS, and doing so without apparent fear of consequences -- presumably because they (NASDAQ, NYSE) have been given a free pass to do whatever it takes to maintain the perception that the world hasn't collapsed.

The takeaway is we're closer to the end than many might imagine. I used to think the SHTF around 2016-2018, but I can't believe this level of shit can go on for six more years. Two, perhaps. Combine this with the stories here from the last couple days about the state of Japan and I'm starting to thing we're getting into the last few minutes before the boom.

Maybe we make it to 2014 or 2015. It's coming.

Tue, 03/27/2012 - 21:06 | 2296125 francis_sawyer
francis_sawyer'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."

"I'm afraid. I'm afraid, Dave. Dave, my mind is going. I can feel it. I can feel it. My mind is going. There is no question about it. I can feel it. I can feel it. I can feel it. I'm a... fraid. Good afternoon, gentlemen. I am a HAL 9000 computer. I became operational at the H.A.L. plant in Urbana, Illinois on the 12th of January 1992. My instructor was Mr. Langley, and he taught me to sing a song. If you'd like to hear it I can sing it for you."

Wed, 03/28/2012 - 01:04 | 2296496 WestVillageIdiot
WestVillageIdiot's picture

+2001

Tue, 03/27/2012 - 21:08 | 2296126 FreeNewEnergy
FreeNewEnergy's picture

I think you're on to something there. I was postulating today that we have had major crash events in 1987, 2000-2001 and 2008, and if that progression continues, the next one should be around five to six years from the last one (time between "events" 13 years, 8 years, ???), if this collapsing bag-o-ponzi is accelerating, which I think it is.

The 2012 election will keep it from crashing this year, that's a given since the elites want to have their jollies throwing wool over the eyes of the public, but any time after that is open game.

Interestingly, the Fed has set a date of late 2014 for the earliest end to ZIRP, which sounds about right. I give it two more years on the outside before all hell breaks loose from thousands of different angles. Total chaos, engineered by the 1% and carried out by their lackeys.

Prepare or die.

Tue, 03/27/2012 - 23:21 | 2296373 Nukular Freedum
Nukular Freedum's picture

Just ran this one up for people based on some thoughts I had a while a while ago. Subject to future revision/correction of course. Enjoy.

http://pearlsforswine.wordpress.com/2012/03/28/september-2015/

Tue, 03/27/2012 - 21:50 | 2296208 Money 4 Nothing
Money 4 Nothing's picture

Mutual Assured Destruction of a Financial Nature, there are lot's of different types of WMD's Just ask Israel.

Tue, 03/27/2012 - 22:26 | 2296278 erg
erg's picture

Chapter: This is John Galt speaking

Wed, 03/28/2012 - 07:58 | 2296756 Koffieshop
Koffieshop's picture

.Interestingly, the Fed has set a date of late 2014 for the earliest end to ZIRP, which sounds about right.

End of ZIRP? How is that going to work? As I understand it it would only increase the need for money printing because it pretty clear there can not be any real deficit cuts without crashing the system.

Tue, 03/27/2012 - 21:11 | 2296130 samsara
samsara's picture

dup

Tue, 03/27/2012 - 21:09 | 2296131 samsara
samsara's picture

2015 is Martin Armstrong's US Turning point. Sovereign Defaut type thingy.

Tue, 03/27/2012 - 21:25 | 2296164 Dr. Engali
Dr. Engali's picture

If we make it beyond this year I'll be amazed.

Tue, 03/27/2012 - 22:27 | 2296281 espirit
espirit's picture

Baracudas have taken out all the small fry in the pool, now they are starting to feed on each other.

There shall only be one left.

Wed, 03/28/2012 - 00:06 | 2296432 ghengis86
ghengis86's picture

And it will be the Squid who feasts on the carcasses

Tue, 03/27/2012 - 22:34 | 2296294 Vendetta
Vendetta's picture

Indeed.  But there is an ad on ZH for a CD paying 1.08% ...yee haw.  That will make someone's money survive it all .. .  /sarc off

Tue, 03/27/2012 - 20:44 | 2296088 max2205
max2205's picture

It's all a crapshoot from here

Tue, 03/27/2012 - 20:45 | 2296090 francis_sawyer
francis_sawyer's picture

'Timmeh' needs a new pair of shoes...

Tue, 03/27/2012 - 20:49 | 2296091 SwingForce
SwingForce's picture

Wow, Parabolic DOWN! Only the second time I've seen that.

(SPY 7/21/2011- 8/9/2011)

Tue, 03/27/2012 - 21:41 | 2296097 williambanzai7
williambanzai7's picture

I love those charts!!

And Mary Schapiro is a Borg comfort woman.

BATS CHART

.
And this belongs in this thread...

AUTOMATED TRADER

Tue, 03/27/2012 - 20:51 | 2296098 malikai
malikai's picture

Welcome to FailTown, BATS. Enjoy your stay. You'll be here for a while.

Wed, 03/28/2012 - 01:12 | 2296509 WestVillageIdiot
WestVillageIdiot's picture

The bedbugs are an excellent source of protein.  Enjoy!

Tue, 03/27/2012 - 20:52 | 2296100 Caviar Emptor
Caviar Emptor's picture

The algos are beginning to eat their own children! 

Tue, 03/27/2012 - 21:04 | 2296123 Yes_Questions
Yes_Questions's picture

 

 

Hmmmm, baby algos.

 

Tue, 03/27/2012 - 21:10 | 2296133 Money 4 Nothing
Money 4 Nothing's picture

BATS playing The Hunger Game

Tue, 03/27/2012 - 20:56 | 2296108 Hangfire
Hangfire's picture

May 6th 2010, the day I opened my eyes.   

Tue, 03/27/2012 - 23:38 | 2296398 Zero_Sum
Zero_Sum's picture

So true. I was driving through Alabama on the highway, listening to news radio. Heard the markets dropping, pulled over on the side of the road, booted up my laptop and wireless and watched the whole thing go down, right there on the highway. Pulled every dime I had in the markets out the very next day. I'll take my 1.14% APY, thank you.

Wed, 03/28/2012 - 00:24 | 2296453 Hangfire
Hangfire's picture

While it may not have been the day that "Skynet" realized it's own existence, it was the day that humans SHOULD HAVE become aware of the dangers ahead.     

Tue, 03/27/2012 - 20:58 | 2296113 Dicite justitiam
Dicite justitiam's picture

Alternate markets, that do not enable our currency, are forbidden.

Tue, 03/27/2012 - 20:59 | 2296116 nmewn
nmewn's picture

May the best cyborg win.

Tue, 03/27/2012 - 21:02 | 2296117 Caviar Emptor
Caviar Emptor's picture

In the end there were no humans left. But the algos kept trading the market higher

Tue, 03/27/2012 - 21:57 | 2296225 blu
blu's picture

This will almost certainly become the case. I can imagine a dozen ways it could happen. The entire economy -- top to bottom -- as one ginourmous act of propaganda.

Tue, 03/27/2012 - 21:05 | 2296124 fonzannoon
fonzannoon's picture

Some jetblue pilot today went batshit crazy. I wonder if these incidents are related.

Tue, 03/27/2012 - 21:14 | 2296137 francis_sawyer
francis_sawyer's picture

JetBlue = Zionist false flag (probably paid some overindebted pilot to wig out & scream out IRANIAN TEAR OUR WRISTS)

http://news.yahoo.com/jetblue-captain-theyre-going-us-down-213258583.html

Fucking "underwear bombing 101"...

Wed, 03/28/2012 - 05:23 | 2296651 Disenchanted
Disenchanted's picture

 

 

Not enough Soma...or too much?

 

"..there is always soma, delicious soma, half a gramme for a half-holiday, a gramme for a week-end, two grammes for a trip to the gorgeous East, three for a dark eternity on the moon..."

Tue, 03/27/2012 - 21:08 | 2296127 Atomizer
Atomizer's picture

One sidenote, watching CNBS Income Tax bit. Not one politician noted for not paying taxes, all sheeple court cases. Policy planners get caught, but never serve jail time. ie Rangel & Turbo Timmy perps.

http://174.129.17.12/20120327/harlem/charlie-rangel-ordered-pay-thousands-fines-for-campaign-violation

This is the fucked up system we live in.. Two sets of laws, some go to jail and others walk.

Tue, 03/27/2012 - 21:10 | 2296132 ekm
ekm's picture

..."but also which destroyed any hope that the retail investor may be coming back to what is now a permanently and terminally broken market."

Now, Tylers, do not give us BS please. One of the main reasons the retail poor souls are out is because of Zerohedge. Almost every single retail sucker reads Zerohedge, not necessarily posting thoughts, but people read ZH every day and have learned the tricks not to be suckered in any longer.

So, being humble is a good thing, not beating your chest is a good thing, but from time to time, it's a good thing to give you credit. Good job, very, very good job.

Tue, 03/27/2012 - 21:15 | 2296142 fonzannoon
fonzannoon's picture

ey EKM if they are out of stocks and into PM's how are they doin?

Tue, 03/27/2012 - 23:04 | 2296185 ekm
ekm's picture

Fonzannoon

By definition the market is for Venture Capital, hence a riskly place. The very name "retail investor" is to suck them in. They should be nowhere, but save the money and live within their means. Even those who had a "home", now have no home at all, and in old age. Can't remake that money any longer.

Tue, 03/27/2012 - 22:00 | 2296236 ThisIsBob
ThisIsBob's picture

Yes siree, those poor retail souls have been warned off since 666.

Tue, 03/27/2012 - 22:14 | 2296250 ekm
ekm's picture

The feeling of being a sucker, it's a strong feeling, debilitating sometimes.

People with houses under water or even just a little above water (forget retirement), are feeling SUCKERS, and they hate it.

To be suckered once, it's no biggie, to be suckered twice it's bad, but hey, no more, but being suckered for 30 plus years and the retirement money they though they had is .......................pulverized. Debilitating. Feel so bad for them.

 

Tue, 03/27/2012 - 21:10 | 2296134 Herkimer Jerkimer
Herkimer Jerkimer's picture

Was this also a message being sent?

Has somebody created software that is just hands and feet above everybody elses?

Follow the money. Who did this?

 

•?•
V-V

Tue, 03/27/2012 - 21:59 | 2296232 blu
blu's picture

NASDAQ might have done it themselves.

It's just like when the rating agencies started down-grading each other.

Tue, 03/27/2012 - 21:14 | 2296140 FreeNewEnergy
FreeNewEnergy's picture

I wonder if BATS has the balls to sue NASDAQ. That would be a fun trial, take about seventeen years to settle, by which time, who the hell would care?

There are probably simpler solutions for BATS, like using bats on some people's kneecaps and craniums. Been done before and there had to be some serious moolah behind BATS, so they can pay up for the best.

This story isn't over by a long shot.

Tue, 03/27/2012 - 22:38 | 2296305 azusgm
azusgm's picture

BATS' general counsel is none other than Eric Swanson, husband of Shana Madoff. Mrs. Swanson is Peter's daughter and Bernie's niece. She is an attorney and was the compliance officer for Madoff. (No kidding.) She and Eric started dating while Eric was at the SEC and in charge of an investigation of the Madoff firm.

Too bad the SEC is a corrupt, captured, inept regulatory agency headed by one of Bernie's friends.

Wed, 03/28/2012 - 11:57 | 2297498 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

Bill Shakespeare could not come up with a web that twisted.

Tue, 03/27/2012 - 21:22 | 2296157 Dr. Engali
Dr. Engali's picture

I thought that might be the case. I hope these basturds cannibalize each other until the whole system crashes. So I wonder how BATS will strike back.

Tue, 03/27/2012 - 22:16 | 2296254 infinity8
infinity8's picture

It's nice to have confirmation of the conclusion that I came to las Friday after watching this shit-show. It was the answer that made the most sense to me. Donner's Pass Now!

Tue, 03/27/2012 - 21:24 | 2296162 The Beam
The Beam's picture

wrestlemania is this weekend. New match added:

BATS vs NASDAQ. Grudgematch for the ages in the first ever FIGHT TO THE DEATH MATCH!

Tue, 03/27/2012 - 21:32 | 2296167 Number 156
Number 156's picture

Hyperfast Server farm: $120,000,000

Dedicated multi leg MPLS network wired directly to the exchange: $ 3,000,000

The best and brightest people money can buy $30,000,000

The big day when your stock exchange finally goes public: $0.00

Watching skynet self immolate itself: PRICELESS.

 

Tue, 03/27/2012 - 21:52 | 2296216 streetcrawler
streetcrawler's picture

Nice. We had a company that wanted us to build them a "hammer" for energy trading. For one thing, we have no experience in RTOS programming, and also I don't think this company had the slightest idea what kind of hardware you would need to compete with the big dawgs.

Tue, 03/27/2012 - 21:27 | 2296169 alfred b.
alfred b.'s picture

 

   Markets à la Goldman !

 

Tue, 03/27/2012 - 21:28 | 2296170 oogs66
oogs66's picture

Ecn's are parasites. They only thrive off of real orders elsewhere

Tue, 03/27/2012 - 21:29 | 2296171 lolmaster
lolmaster's picture

BATS also could have avoided this by conducting a proper IPO ...

Tue, 03/27/2012 - 22:17 | 2296258 UP Forester
UP Forester's picture

You mean if they hired Goldman and JPM, this golden turdball wouldn't have been flushed until money had actually been stolen good and proper-like?

Tue, 03/27/2012 - 21:45 | 2296199 JW n FL
JW n FL's picture

 

 

Let that be a lesson to you Slaves!

The Masters have spoken!

Board of Directors
http://ir.nasdaqomx.com/directors.cfm
Tue, 03/27/2012 - 21:46 | 2296201 TradingJoe
TradingJoe's picture

See, this is why I stopped trading paper! Much nicer to STACK IT fellows!:())

Tue, 03/27/2012 - 21:47 | 2296205 palmereldritch
palmereldritch's picture

Just imagine what Skynet will do when it really becomes self aware.

Fascinating interview here about what may happen if future super AI escapes into the wild

http://www.youtube.com/watch?v=2YygKQh74Rg
Tue, 03/27/2012 - 22:30 | 2296287 mick_richfield
mick_richfield's picture

After perfecting time travel, it would send humanoid robots back in time to 1913, create the Federal Reserve, and conquer the human race without letting them know there had even been a war.

Tue, 03/27/2012 - 22:39 | 2296308 palmereldritch
palmereldritch's picture

It will be a beautiful world, run by caring politicians. Like the kind you will find in Sustainia

http://thedailybell.com/3712/Schwarzenegger-Sells-Out-to-the-Horrible-UN...

Tue, 03/27/2012 - 21:53 | 2296217 dogismyth
dogismyth's picture

here's the relevant question...

 

WHY ARE YOU STILL PLAYING THE MARKET AND STILL REPORTING ON IT??  FOR WHOSE BENEFIT???

 

Because you're an idiotic addict just like the slot machine junkies who think they'll walk out with their pockets full knowing full well the house has the advantage.

 

But have at it....play in the corrupted game which you are obviously interested in because you are complaing/reporting on it.

Tue, 03/27/2012 - 22:18 | 2296261 UP Forester
UP Forester's picture

I see what was done there.  You confused "you" with "ewe"....

Wed, 03/28/2012 - 00:32 | 2296458 dogismyth
dogismyth's picture

idiots...the lot of ya.  I laugh my ass off at you guys trying to rationalize this BS and the "serious" and "thoughtful" consideration you give for your next dart throw.  LMFAO!!!!!

Wed, 03/28/2012 - 01:23 | 2296522 UP Forester
UP Forester's picture

Much like folks of your ilk, the "market" has devolved into mere entertainment purposes only.

Conflating those who make fun of the "market" with clueless zombies that "make money" on paper holdings is akin to saying that your bomb-throwing has as much merit as you think it does.

I fart in your general direction....

Tue, 03/27/2012 - 22:35 | 2296222 Godisanhftbot
Godisanhftbot's picture

 Amazing all this foresnic shit, and no one asks WHO is SELLING to WHO at those prices.

 

 Are they selling to themselves?  What imbecile would sell the stock at < $10 no less 2 cents?

 If they are self dealing , then that is a violation.

 If not, then the whole episode makes no sense.

 Lots of arm flailing for nothing.

 

PS Anyone want to buy some of those BATS shares I bought at .0000001 cent?

 

 

Tue, 03/27/2012 - 21:56 | 2296223 Cdad
Cdad's picture

As always, Tyler with the truth of the matter...while the MSM bites on "glitch" and wishes the story away for five straight days.

You just have to love how the BlowHorn [CNBC] and its perpetually meaningless programming, while all about us, and on a daily basis, swirl these stories of corruption within the financial services industry.  

Tue, 03/27/2012 - 21:59 | 2296231 lasvegaspersona
lasvegaspersona's picture

May 6, 2010...October 31, 2011 ...March 23, 2012

these are days that will live in imfamy...except  the MSM first has to make them imfamous. For now they are the days that taught me to get the fuck out of the market and stay out!!! If you ain't a Large Dangling Phalus you will be hurt....

there is simply no safe investment except for physical metal held close at hand...

I am quitting/closing down  my profit sharing plan because there is no point in taking a risk like these days prove exist, just for a brief and small tax advantage. From now on I will do it the old fashioned way; buy gold, hide it under the mattress (metaphoriclly speaking) and when I'm old (er) take it to the coin store and get what ever circulating medium of exchange is commanded by the almighty government and buy my cat food with it. I may not be all that bright but I got the message this time.

Wed, 03/28/2012 - 12:28 | 2297603 MayIMommaDogFac...
MayIMommaDogFace2theBananaPatch's picture

October 3rd, 2008

Tue, 03/27/2012 - 22:11 | 2296248 blu
blu's picture

It's like a circus. Today there's nothing, then over night it shows up, and the next day it's gone.

Heck, must be time for more fun & games with Fortran:

http://madscienceunlimited.com/fiction/theexchange.html

She's cute, she's blue, she's insane, she's stacked like a brickhouse and she's finally going to answer the question; what exactly does a girl do with 4 trillion computational units?

Get yer game on, beotchez.

Tue, 03/27/2012 - 22:16 | 2296257 chump666
chump666's picture

HFTs just bust all the index supports, you can do it you crazy bits of junk.  So the momos panic and we can swing trade these goddamn tops.

Crash APPL or something. Thanks.  Y'know an inverse skynet trade i.e crash the stock on good news hahaha.

The market is a f*cking joke.  But payback is looming...

Tue, 03/27/2012 - 22:27 | 2296276 ekm
ekm's picture

You told me sth last night about crude oil being bid. It's still in my mind, I don't know why yet, but it could explain a lot of things.

All day today, as soon as it got down to about 106.80, it started being bid up. Right now 106.76

Tue, 03/27/2012 - 22:35 | 2296297 chump666
chump666's picture

Check this, oil bid, commods sell, equities sell, USD bid.  The proxy risk trade is the AUD, usually it's a good bellwether on US futures...usually.  It got slaughtered, going from 1.055 to 1042 in 5hrs or so.  Point?  The markets are completly our of whack or disconnected, that being said it may be HFTs just supporting MA's, nothing else.

I hope they (HFTs) sell, because money (end mth) will be sucked out of this market so fast.  We could have a crash any moment.

Tue, 03/27/2012 - 22:42 | 2296316 chump666
chump666's picture

...in theory

Tue, 03/27/2012 - 22:49 | 2296330 ekm
ekm's picture

Since MFGlobal happened, it is quite obvious PPT has been trying daily to prevent a crash. I paid attention to oil every 3-4 minutes at work based on what you said, and it was very, very true.

Which makes me ask:

- Why? They cannot do this forever.

- They switched from, bymonthly, to byweekly, to weekly, to .................daily. Crude oil is proof.

There is something, really really bad. Only patience pays off.

Tue, 03/27/2012 - 23:34 | 2296394 palmereldritch
palmereldritch's picture

Crude Oil's price has been denominated exclusively in USD until just very recently. 

Could this unwind be exacerbating things for the algo PPT and increasing volatility?

Tue, 03/27/2012 - 23:53 | 2296417 ekm
ekm's picture

Getting stuffed with BAC to hold up the price is one thing, holding up the price of the crude oil, the base of western civilization, is totally another thing. This is bigger than I thought and I credit Chump for this one.

Wed, 03/28/2012 - 00:07 | 2296434 palmereldritch
palmereldritch's picture

So did they whack the AUD as risk trade through it threatened crude?  Kind of a warning not to go there?

Wed, 03/28/2012 - 00:15 | 2296443 ekm
ekm's picture

http://world.kbs.co.kr/english/news/news_In_detail.htm?No=89205

Lolmao just posted this. Korean website.

You and Chump are the finance guys that try to analyze money flows. I read you and him and make my own macro analysis.

I am no longer paying attention to those details since I do not see a market. There is no market. Just the Fed and the Primary Dealers. I think any conclusions off money flows are inherently incorrect at this point as all that matters is about when the Fed and Primary Dealers decide to pull away the rug.

Basically, from same facts, I draw different conclusions.

Wed, 03/28/2012 - 00:26 | 2296454 palmereldritch
palmereldritch's picture

From the link:

US Considering Release of Oil Reserves

Write 2012-03-28 08:53:57   Update 2012-03-28 10:51:24

Acting assistant secretary for fossil energy, Charles McConnell, said at a hearing of the House Appropriations Subcommittee on Energy and Water Development in Washington Tuesday that the idea has been considered for a while but "no decision has been made.” [Emphasis mine]

Sorry to go OT on this sub-thread but the overall meme is illusion afterall and this idea of fossil fuels is a pet peeve with me.  This article is quite insightful as to the nature of the scarcity of oil as a commodity:

http://thedailybell.com/3719/VIDEO-The-Origins-of-the-Phrase-Fossil-Fuel

 It appears the term dates back to Rockefeller and the late 19th century when selling a commodity based on its scarcity helped support the price and foster monopolies.

Video is an interview with the great Col.Fletcher Prouty.
Wed, 03/28/2012 - 00:37 | 2296462 ekm
ekm's picture

You're talking to the wrong guy.

Based on my own research, the earth produces crude oil endlessly. The earth cannot run out of any element, like air, water, crude oil etc.

Wed, 03/28/2012 - 00:42 | 2296467 palmereldritch
palmereldritch's picture

Then I'm talking to the right guy.  The story is about artificial scarcity.

Like any element it is finite but petroleum is very unlikely organic in origin and very probably continuously produced inorganically and in much higher reserves than represented.

Wed, 03/28/2012 - 00:44 | 2296472 ekm
ekm's picture

I don't even agree with the concept of reserve.

What is the reserve of air, or water?

Wed, 03/28/2012 - 00:48 | 2296478 palmereldritch
palmereldritch's picture

If you ever owned a motorbike you would...lol

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