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Visualizing The Halt Of America's Largest Publicly Traded Company Due To A HFT Glitch

Tyler Durden's picture




 

Today, at 10:33:37 am, America's largest publicly traded company, Exxon Mobile (sorry, any surge in AAPL to the top market cap position in the US is truly the only realistic use of the word "transitory" in the past year) was halted after an errant trade printed outside of normal trading parameters and freaked out the artificial regulatory limiters. Naturally the trade was DKed, but for a few minutes one of the bellweather American stocks was out of commission due to the post-modern equivalent of a fat finger: an algo that was programmed to aggressively hit any bid, well below the NBBO. Luckily, this happened well after the rumor of a short selling ban was implanted in the traders' psyche, and markets were largley higher. Had XOM been halted as the S&P was down several percent, who knows what panic would have gripped the stock market forcing many to dump their holdings of viable stocks. And this will continue for as long as the SEC does not comprehend that the fact that US capital markets are broken is well and fully understood by most retail investors and which is why they have pulled over $160 billion from equity mutual funds since 2010.

XOM wide angle - follow the white dot.

and XOM, close up, and again, follow the white dot.

Source: Nanex

 

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Thu, 08/11/2011 - 12:20 | 1551232 FreakuentFlyer
FreakuentFlyer's picture

which venue printed this trade?

Thu, 08/11/2011 - 12:46 | 1551308 crazyjsmith
crazyjsmith's picture

BANK OF AMERICA is not showing my checking or savings accounts this morning.  My accounts have totally disappeared, my wife's accounts have totally disappeared. 

Called in, been on hold for 30 minutes after they have already hung up on me once.  I am sure there is no reason to panic...yet

Argentina anyone?

Thu, 08/11/2011 - 12:52 | 1551326 ReallySparky
ReallySparky's picture

And everybody here is wondering why you are even banking there.  Please immediately withdraw your funds and put them in a strong local bank, most preferably a strong local credit union.  I used to bank there,  pulled in by the preffered customer bullshit, prior to the awakening.  I would rather have my checking account safe than my ego.  Really why bank with villians?

Thu, 08/11/2011 - 12:53 | 1551331 pods
pods's picture

Might I suggest finding a new bank?

pods

Thu, 08/11/2011 - 12:56 | 1551340 crazyjsmith
crazyjsmith's picture

Yeah, I know.  This was their last move.  I have been to several local banks this past week - this was basically my direct deposit bank only, company I work for has a relationship with these crooks.  Still not enough reason to go against my ethics... I am out

Thu, 08/11/2011 - 13:05 | 1551363 pods
pods's picture

Well change is tough.  My BIL works for them.  He is a great guy, but I had to close my CC acount with them, as I closed all my credit accounts.  If I had credit, it would be through a credit union.

Be careful of even credit unions.  Mine was on the FDIC watchlist as of last year.  Haven't kept up with them, but they are still open.

pods

Thu, 08/11/2011 - 13:53 | 1551481 Widowmaker
Widowmaker's picture

BAC = definition of fraud and failure rewarded (moral hazard).

With your patronage you support their criminal racket, thus should expect [and deserve] to see none of your wealth again. 

Sorry, I hope you lose it because I'm sick of paying for it.

Thu, 08/11/2011 - 12:21 | 1551235 WineSorbet
WineSorbet's picture

Broken Bitchezzzz! 

 

THere I said it.

Thu, 08/11/2011 - 12:39 | 1551285 i-dog
i-dog's picture

"this will continue for as long as the SEC does not comprehend that the fact that US capital markets are broken"

Who seriously thinks that  the SEC "does not comprehend" the consequences of their lack of action. It's part of the fucking plan!

Thu, 08/11/2011 - 12:23 | 1551241 centerline
centerline's picture

The modern battlefield, made more visible by Nanex and ZH.

Thu, 08/11/2011 - 12:28 | 1551252 Cognitive Dissonance
Cognitive Dissonance's picture

You mean the modern (HFT gang) rapefield, made more visible by Nanex and ZH.

Thu, 08/11/2011 - 12:34 | 1551273 centerline
centerline's picture

Just wait until they turn to eat each other!

Thu, 08/11/2011 - 12:26 | 1551247 Arch Duke Ferdinand
Arch Duke Ferdinand's picture

Its Not Just Stocks Blowing Up Folks!

*****Volcanic eruptions off Oregon and Alaskan Coastlines in Progress...

http://seenoevilspeaknoevilhearnoevil.blogspot.com/2011/08/pacific-north...

*****OT: The Creek...short film.

Parallel to knocking your head in the Stock Market...

http://www.youtube.com/watch?v=BLRAqfN48zo&feature=feedbul

Thu, 08/11/2011 - 12:26 | 1551249 slaughterer
slaughterer's picture

This algo is clearly not THE DISRUPTOR.  It must be THE THROWER.

Thu, 08/11/2011 - 12:27 | 1551250 speconomist
speconomist's picture

I know these kind of images of Nanex from HFT bots are quite usual, but isn't it somehow difficult for some of you to analyze/understand them?? Would love to see some kind of explanation to interpret them.

Thu, 08/11/2011 - 12:32 | 1551260 goldstandard
Thu, 08/11/2011 - 12:31 | 1551263 hackettlad
hackettlad's picture

Only Americans use the word "transitory" - everyone else says "transient".  The FT quote marks "transitory" when it cites the Bernank.

Thu, 08/11/2011 - 12:31 | 1551264 Josh Randall
Josh Randall's picture

Time to change the name back to ESSO

Thu, 08/11/2011 - 12:34 | 1551267 slaughterer
slaughterer's picture

There are about 12 different popular algo programs on the market.  Money center banks like WFC and the Asians are buying them up to better serve their institutional clients.  Recent trend is in "low-contact" algos for low-volume stocks.  Whenever you get cornered by one of these in a low-volume issue, your life becomes a living nightmare as a trader.   Paranoid thoughts fill you with despair as you realize your broker sold your trade information to an algo system that rips you apart in the fight of man and machine.

Thu, 08/11/2011 - 12:34 | 1551270 Biff Malibu
Biff Malibu's picture

Wow! Someone got a really good deal! They must use 'extreme couponing'

Thu, 08/11/2011 - 12:37 | 1551278 RobotTrader
RobotTrader's picture

I don't see any XOM gyrations on my screen.

Stock has been trading in a tiny narrow range all day.

Same with CVX and COP.

Thu, 08/11/2011 - 12:39 | 1551286 slaughterer
slaughterer's picture

You need a SOTA  trading tracking system to follow algos.    The DKed trades usually do not show up on most trading monitors. 

Thu, 08/11/2011 - 12:40 | 1551287 hackettlad
hackettlad's picture

What's your view on the current market rout in the light of your earlier (recent) comments about the market trending upwards?

Thu, 08/11/2011 - 12:46 | 1551305 slaughterer
slaughterer's picture

I only trade day-by-day, and today (just today) the technicals of the ES and S&P are fairly bullish.  This might change after 2pm when the MF redemptions come in.

I would go along with either Tyler's 1050 support level or Marc Faber's 1010 support level, but that needs another week or so.  Until then, I am just battling the bots as best I can on six screens (one of which is perpetually reserved for ZH).

Thu, 08/11/2011 - 12:39 | 1551283 Long-John-Silver
Long-John-Silver's picture

Skynet is probing it's environment as it becomes self aware. 

Thu, 08/11/2011 - 12:39 | 1551284 Steaming_Wookie_Doo
Steaming_Wookie_Doo's picture

"the fact that US capital markets are broken is well and fully understood by most retail investors and which is why they have pulled over $160 billion from equity mutual funds since 2010."

I would contend that "most" retail investors don't know much of anything except that they are probably so strapped for cash with downsizing or other longterm unemployment that they *must* cash in their 401k money. Unfortunately too many folks I talk to about trading their own acct will not apply any personal responsibility, control or knowledge, but merely blub half-heartedly when they have losses. Even cargo cults had a more causative viewpoint on trying to attract prosperity.

As for XOM shit canning, I could only hope for such luck to the original Monty Burns (D. Rockefeller).


Thu, 08/11/2011 - 12:43 | 1551297 RobotTrader
RobotTrader's picture

Futures have cleared yesterday's highs

Thu, 08/11/2011 - 12:46 | 1551306 fuu
fuu's picture

Got a blood transfusion recently?

Thu, 08/11/2011 - 12:48 | 1551315 Caviar Emptor
Caviar Emptor's picture

lol

Thu, 08/11/2011 - 12:46 | 1551307 fuu
fuu's picture

.

Thu, 08/11/2011 - 12:47 | 1551311 Caviar Emptor
Caviar Emptor's picture

Let's add to the list of Wall Street (and CNBS's) favorite list of bullshit adages for the stock market:

 

You've all heard: "It's not a stock market, it's a market of stocks"...

Today we proudly add :  "It's not a stock market, it's a market of BOTS!!!" 

Thu, 08/11/2011 - 12:49 | 1551317 slaughterer
slaughterer's picture

You owe me a new screen.  Would love to see Becky spout that out.

Thu, 08/11/2011 - 12:51 | 1551322 slaughterer
slaughterer's picture

If we can close at 1200 tomorrow the IBD cup-and-handle squad will come back into the market to buy their favorite IBD 100 stocks next week.  

Thu, 08/11/2011 - 12:53 | 1551328 prophet
prophet's picture

"viable stocks" 

Really?

Thu, 08/11/2011 - 12:56 | 1551338 slaughterer
slaughterer's picture

TBT got algoed yesterday. XOM today.  Pretty soon the ultimate target: SPY!

Thu, 08/11/2011 - 18:23 | 1552356 citta vritti
citta vritti's picture

which means, the Rod Serling and the Outer Limits rules now apply: don’t touch that dial, we control the horizontal (time), we control the vertical (price). Shows us who controls bartertown. 

Thu, 08/11/2011 - 13:13 | 1551385 The Grip
The Grip's picture

.

Thu, 08/11/2011 - 13:13 | 1551388 DarkStarDog
DarkStarDog's picture

hears a BooYah !!!  for you TD ,  look at SODA   LOL !

Thu, 08/11/2011 - 13:16 | 1551401 Greater Fool
Greater Fool's picture

Um, can somebody explain to me why trades like these get busted? I've never noticed that any of the retail brokerages offer free stupidity insurance.

Thu, 08/11/2011 - 13:47 | 1551483 lizzy36
lizzy36's picture

There is no reason why these trader should get dk'd.

Best thing that could happen to a market not being regulated by regulators, but rather being facilitated by regulators:allow all trades to stand.

A couple of traders stuck with these shitty prints, and pretty soon we wouldn't see them as often.

As long as they continue to get bailed out, there is less than ZERO incentive to change thier Algo's/behavior.

Thu, 08/11/2011 - 14:29 | 1551580 JW n FL
JW n FL's picture

http://www.youtube.com/watch?v=k5kHACjrdEY&list=FLjAWptc6azYo&index=1

The Story of Citizens United v. FEC (2011)

 

http://www.youtube.com/watch?v=tJEeKez1Jlw&feature=related

Story of Citizens United v. FEC, The Critique <--------------- Koch Brothers! at work!

Thu, 08/11/2011 - 18:52 | 1552423 i-dog
i-dog's picture

"Koch Brothers! at work"

Correction: Logic at work! He absolutely demolishes Annie Leonard's liberal propaganda piece.

Thu, 08/11/2011 - 14:36 | 1551607 Jason_1sandal
Jason_1sandal's picture

Bad algo... bad, bad.... no zeros for you today, only ones

Sat, 08/13/2011 - 02:46 | 1556594 yang46
yang46's picture


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