Summer Doldrums: Unchanged Market On Collapsing Volume

Tyler Durden's picture




 

This is the where we would normally do our daily market summary, but frankly there is no longer a market left to summarize: today's volume may not have been the lowest of 2012, including holidays, but it was close. Total volume on Tape A for all exchanges was just above 3 billion shares, 20% below the YTD average, which in turn is 20% below the 2011 average, and so on. As more and more firms such as Knight are carted out, and as confidence in the market follows the US corn reports percentage of corn in "good excellent" condition lower to zero, and then negative (why not? We have NIRP in half the developed world after all) more firms will have no choice but to go out of business: some may blame their extinction on a rogue algo, some on a social network IPO, but the reality is that unless trading volume picks up, banks and trading desks, in their current shape, are doomed.

As for that dump of ES into the last minute of trading to an unchanged close, it would have been almost notable, if anything about the preceding 8 hours rise in the stock market heading into it was also notable, instead of merely the artifact of what everyone now knows is merely a buy everything algorithm belonging to either Knight, or one of its increasingly smaller competitors.

Let the cannibalization begin.

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Mon, 08/06/2012 - 16:47 | 2682798 Bartanist
Bartanist's picture

Couldn't happen to a nicer group of criminals.

Mon, 08/06/2012 - 16:50 | 2682811 SilverTree
SilverTree's picture

Hannibal Lechter would be proud.

Mon, 08/06/2012 - 16:56 | 2682837 JLee2027
JLee2027's picture

I do wish we could chat longer, but... I'm having an old friend for dinner. Bye. 

Best line in the movie...

Mon, 08/06/2012 - 17:18 | 2682903 engineertheeconomy
engineertheeconomy's picture

What's this?

This is the worlds smallest violin...

Mon, 08/06/2012 - 19:53 | 2683185 The Watchman
The Watchman's picture

you just need some of this....

 

http://www.youtube.com/watch?v=32V3GRnz4us

Mon, 08/06/2012 - 16:59 | 2682847 Meesohaawnee
Meesohaawnee's picture

so would hitler

Mon, 08/06/2012 - 17:04 | 2682860 SilverTree
SilverTree's picture

Whats your favorite Hitler quote?

Mon, 08/06/2012 - 17:03 | 2682858 slewie the pi-rat
slewie the pi-rat's picture

mmm...  fava beans & negative corn (non-GMO, thank goodness!) with a nice glass of zirponzi

Mon, 08/06/2012 - 16:52 | 2682819 Clueless Economist
Clueless Economist's picture

At least CNBC's ratings are way up.

Folks who try to help the "little guy" like Cramer, Liesman, Pisani and crew, will always earn high viewership.

 

Mon, 08/06/2012 - 17:01 | 2682853 IndicaTive
IndicaTive's picture

With "help" like that, who needs bath salts?

Mon, 08/06/2012 - 19:13 | 2683097 Lost Wages
Lost Wages's picture

We're going to need bath salts to live through a dystopian future where we will have to cannibalize our neighbors' faces to survive.

Mon, 08/06/2012 - 17:24 | 2682915 engineertheeconomy
engineertheeconomy's picture

Gambling for little teenie tiny pieces of completely worthless green paper

How exciting...

Mon, 08/06/2012 - 17:39 | 2682937 financial apoca...
financial apocalyptic contagion's picture

"little teenie tiny pieces of completely worthless green paper"
those green pieces can buy you important stuff you fuckin hippie
dont hate the messenger..... 

Mon, 08/06/2012 - 17:09 | 2682877 vast-dom
vast-dom's picture

S P U T U M  P O N Z I  D R I P

Mon, 08/06/2012 - 16:50 | 2682806 MillionDollarBoner_
MillionDollarBoner_'s picture

Fixed cost meets shrinking T/o

Bitchez!

Mon, 08/06/2012 - 16:50 | 2682807 Neethgie
Neethgie's picture

Gross was right, for all the wrong reasons, people arent gonna leave equities because of small gdp growth ect, people are leaving equities because nonsense rallies fuelled by about 10 algo's are the only players in this market, you sometimes wonder while trading "how many others are in this" websites like stock twits show how alarmingly few twitter users are trading, infact type in $AAPL on twitter to find only the few bbg tv fellows talking about it.

Gross said equities would die for a whole host of reasons.

nope equities are dying because we have no faith left in the market, their is no belief in it anymore knight caPITal ect shows nothing is real, we had a 80c spike in crude oil because a fake twitter acc said assad died..

but just think how ridiculous that even is? syria is already in a civil war, syria is not a major oil producer, assad dying would bring to an end the instability should be oil negative.... like when monti says the ecb will expand its balance sheet, it should be eur negative but it isnt... the whole market is broken by algos

Mon, 08/06/2012 - 16:55 | 2682830 LawsofPhysics
LawsofPhysics's picture

What about all the working stiffs that are forced to play through their limited 401k plans?  Seems like there might be some blowback should all the 401k holders suddenly find that their accounts have been "corzined".

Mon, 08/06/2012 - 16:58 | 2682843 yabyum
yabyum's picture

Today is three month (to the day) I can liberate my 401k from Wells Fargo w/o penalty Wish me luck.

Mon, 08/06/2012 - 17:19 | 2682904 MachoMan
MachoMan's picture

Good luck bud.  I got the fuck out of my employer's simple plan...  the estimated tax has been paid and it is a distant memory now...  I will never voluntarily contribute to another retirement account...  never again.  (social security obviously being a straight tax with a different name).

Tue, 08/07/2012 - 00:54 | 2683860 JPM Hater001
JPM Hater001's picture

Got mine out in June...What a relief...

Mon, 08/06/2012 - 17:41 | 2682943 ZaphodBeeblebrox
ZaphodBeeblebrox's picture

For those so lucky to be Corzined. I think the more prevalent issue is those of us who are being forced to Corzine/borrow our 401k. Then who knows maybe economy has turned a corner and we'll all be paying off those loans with our new pay raises!

Mon, 08/06/2012 - 19:39 | 2683165 HellFish
HellFish's picture

I took out a max loan on my 401K - I figure if I get corzined at least some of the money won't be there to be stolen.

Mon, 08/06/2012 - 19:13 | 2683118 Offthebeach
Offthebeach's picture

Detroitifaction of America.

(Will the last grifter please pull the ' We Buy Blood Plasma " sign down on your way out.)

Mon, 08/06/2012 - 16:50 | 2682809 AccreditedEYE
AccreditedEYE's picture

People so easily forget the horrors that program trading exacted on the world in October of 87.... I don't think today's young analysts could handle a 22% drop in equities in a single day.... only "up" computes. Well, that and "QE".

Mon, 08/06/2012 - 16:50 | 2682810 SheepDog-One
SheepDog-One's picture

And why would trading pick up, 'investor confidence' will make a U-turn? I wouldnt bet on it.

Mon, 08/06/2012 - 16:55 | 2682833 Hype Alert
Hype Alert's picture

Article in today's WSJ about Macro Funds not being able to make money in a gov't/central bank manipulated market.  Some of them are closing shop and returning customer's money.  When the funds give up...

Mon, 08/06/2012 - 17:33 | 2682926 larz
larz's picture

These guys are giving up because the cover is coming off their sure thing trades.  You need to be nimble and smart, dont give up none of those people that were hired 'second generation' can trade - i have interviewed and backed some of them to my dismay. There is opportunity if you make it

Mon, 08/06/2012 - 16:53 | 2682824 Jlmadyson
Jlmadyson's picture

Like I said in the other thread:

They got this down to an art as it's not the last minutes anymore but seconds.

Anyhow Treasury burning through 25B on Friday....a real coincidence with Knight burning eh.

Mon, 08/06/2012 - 17:01 | 2682850 magpie
magpie's picture

They'll just shut down another stock exchange to make up for the missing liquidity.

Mon, 08/06/2012 - 16:54 | 2682829 JLee2027
JLee2027's picture

3 billion shares. How much of that is just churn? You know, one market order generating 6 subpenny swaps in nanoseconds before it's filled?

Mon, 08/06/2012 - 17:07 | 2682874 Ned Zeppelin
Ned Zeppelin's picture

75% minimum.

Mon, 08/06/2012 - 16:55 | 2682831 Panafrican Funk...
Panafrican Funktron Robot's picture

Your mom's unched!

            ---your local neighborhood fratboy/broker

Mon, 08/06/2012 - 16:57 | 2682840 Winston Churchill
Winston Churchill's picture

Ah.

Revgenge is sweet.

Caught in their own Muppet trap.

 

Mon, 08/06/2012 - 17:06 | 2682872 slewie the pi-rat
slewie the pi-rat's picture

here's friday's top-caller, barely sweating...

Mon, 08/06/2012 - 17:15 | 2682891 LawsofPhysics
LawsofPhysics's picture

Nice of them to give us the extra day to take profits huh. 

Mon, 08/06/2012 - 17:29 | 2682921 engineertheeconomy
engineertheeconomy's picture

Look at AAPl

Does that PE Ratio seem ok?

Mon, 08/06/2012 - 16:58 | 2682842 scatterbrains
scatterbrains's picture

Those quick last minute dumps are the nyfed taking advantage of imbalances to sell into hard, adding new short positions that they can "buy to cover" in the wee hours of the morning. With the aid of computer timing, lift the market with very little effort... Perhaps the nyfed wants /es above 1400 before sunrise ?

 

Mon, 08/06/2012 - 16:58 | 2682844 Panafrican Funk...
Panafrican Funktron Robot's picture

Just wait until firms start raiding segregated accounts and shit!  Then it's really going to be game over!

 

Mon, 08/06/2012 - 17:18 | 2682900 LawsofPhysics
LawsofPhysics's picture

Wait until? Where is Jon Corzine?

Mon, 08/06/2012 - 17:00 | 2682849 Ludwig
Ludwig's picture

Encouraging day for gold miners.

Chart here:

http://wp.me/p2CT0a-1S

 

Mon, 08/06/2012 - 20:13 | 2683205 GAAPpreNixon
GAAPpreNixon's picture

Maybe for the OWNERS of gold mining stocks but not for the miners themseves. Gold mining is one of dirtiest mining operations around. We don't need to mine gold to use it as a store of wealth. If all the mines were shut down, the above ground gold you have would gain in wealth and you wouldn't be contributing to global pollution by buying gold mining stocks. Gold can be subdivided into nanometer amounts so it could always be used as a backing for a currency and a store of wealth.

 http://www.doomsteaddiner.org/forum/index.php?topic=617.0

Mon, 08/06/2012 - 17:03 | 2682857 Bunga Bunga
Bunga Bunga's picture

low volume, bullish, nobody want's to sell.

Mon, 08/06/2012 - 18:06 | 2682996 Haager
Haager's picture

Reminds me of the album from the famous Marketdeth: "No sells... but who's buying", including suck tracks as  "Wake up, debt", "The mortgage",  "Good money, black friday", "I ain't superrich" and so on-

Mon, 08/06/2012 - 17:03 | 2682859 bolen
bolen's picture

under NIRP no business is going to work anymore. we are doomed. we cannot earn enough for even our food!

Mon, 08/06/2012 - 17:12 | 2682883 LawsofPhysics
LawsofPhysics's picture

But the beauty of NIRP is that the bank will pay you to take out a loan.  < sarc off >

Sorry, that's NIRP for the banks, not you.  Your 401k and treasury holdings will be paying off the debt.

Mon, 08/06/2012 - 17:45 | 2682955 Dr. Engali
Dr. Engali's picture

Don't know why you were junked for that comment. Rand must be running around here somewhere.

Mon, 08/06/2012 - 17:58 | 2682975 LawsofPhysics
LawsofPhysics's picture

Around here, stupid seems to self-identify.  Most sheeple don't understand math and interest rates, much less negative interest rates.

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