This page has been archived and commenting is disabled.
The 'WTF SkyNet' Chart Du Jour
UPDATE: In case you were wondering, IBM's magnicently efficient market behavior today provided 53.6 points for the Dow - which ended the day up only 34.6 points - phew!!
We are sure someone smarter than us can come up with a story and narrative to explain what is going on here. We just sit back and enjoy the beauty of a sentient SkyNet picking off every single stop trade possible.
IBM...
KO...
and MCD...
and the impact on the Dow...
»
- 34005 reads
- Printer-friendly version
- Send to friend
- advertisements -
With each swing a new set of muppets are corzined
Skynet's first day of "total control"?
Obviously this is market-assisting price discovery.
Actually it's a pretty good illustration of why every time someone mentions a financial transaction tax the bankers all shit their pants. As much as I abhor taxation, it would put a stop to a lot of this mickey mouse horseshit in a heartbeat.
Graham and Dodd are dead!
Long live Graham and Dodd!
It's like, how did I know the Bulgarian bus bomber wasn't Iranian?
A few other charts that should be included:
VVUS the last three days
ARNA the last month
AMRN today
Maybe just moving up to big names to test the SEC. They are incompetent, of course, so let's see if the HFT programmers get ballsy and expand their really obvious bullshit.
Check out some Australian stocks, the squid has imported this shit here. Check out SOL.AX and tell me that stock is not entirely manipulated.
Or check out my excellent exclusive expose of the third largest ponzi in history, which depends on algo share manipulation.
http://s1144.photobucket.com/albums/o489/_DrBenway/
This market is nothing but a play toy for the HFT computers.
SkyNet on Bath Salts
I still know people who say that RenTech is the best investment out there....
You know, my first reaction was "that’s just crazy", but after a few minutes reflection I realized that no, of course that cannot be crazy, it is precise, calculated, purposeful evil which by acts of commission and omission is made possible by our government.
I think it's epic brilliance. The ultimate fear machine; designed to never shake the market at its foundation! It appears to be designed to skim of the top. -- So it would seem? It is the perfect harmonization of stable destruction and pillaging? Hate it all you want, it's core belief is brilliant, and therefore beautiful.
HOWEVER, I just wouldn't want to be anywhere near it in high volatility, let alone bearitory.
B/c it's funny you should mention this particular shape showing up, raping the stops... You see, when dealing in HFT fractals, higher order movements contain the same type of micro-market shapes. Notice a similarity to the macro-market?
Now guess what happens when this system of rapid increase decrease reaches a point of harmony? Like planets lining up... extremely massive patches of volatility. Imagine 1000 independent containers on an oil tanker. Now imagine that the typical laws of physics have been removed, and a synthetic version of hyper fractal activity has been injected... eventually all of those containers will rock in unison, and capsize the boat.
Brilliant, with a fatal flaw: fractals are not a stable platform. They are the epitome of the black swan potential. The MF'ing epitome of blindsiding extremes. Why? B/c nature is naturally wild and free. So the idea of stability of rape? Is flawed to its core, and I wonder if the Quants who created this system know it or not...
I remember the oil container similie from Soros when he was talking about deregulation. We will eventually be screwed this way as well - just a matter of time.
Such a perceptive comment (and I do say so myself!) Clamping down on the instability of a system while there's local instability guarantees that sooner or later, there will be a sudden and catastrophic alteration of its behavior until a new equilibrium is formed.
Like soldiers marching across a suspension bridge in unison, the bridge can fall.
I've had this same observation about Algos in general (though not in this top shaving context). One day the dam will burst and the waterfall will come streaming through and it will be unstopable.
If a simpleton like me can figure it out, I assume they too must know. So they think they can get out of the way of it when it is done, or, they are doing it on purpose.
There's a similar phenomena in electrical work called harmonics. Computers and the new electronic ballasts for fluorescent lighting clip off only the cream of the sine wave. In essence trying only to use the peak power of a wave of electricity. This distorts what is left of the wave. Much like two people jumping on a trampoline, if they hit perfectly just after one another, the first one gets skyrocketed off in an odd direction.
Mother nature leaves us messages every where. We have to learn to listen.
Even the clueless Bob Pisani made note of it today toward the close. Now that's news in itself. The usual faces stood around and looked pretty deer-in-the-headlights aghast.
And they will still say they didn't see it coming.
MsC, That is the aspect that gives me the most chuckles ... There are going to be a lot of shocked faces on the day/weekend when the rug is pulled!
And when the list of collaborators is finally "leaked" (by those on the inside), this is what awaits the above at the hands of those who were ripped off: http://img.allvoices.com/thumbs/event/609/480/79519797-collaborator-shot.jpg
+++++
I am pretty sure there are already folks who thought they were inside getting thrown under the bus (or is that the steam roller?).
I didn't realize Thomas Pynchon posted on ZH under the muppet-universe pseudonym.
I wonder if it was a rogue trader who just gave us a sign as to what they can do......he has had enough of rigging the markets and thru this out to show the world just how rigged they are....before he quit...I can only hope someone still has a soul in Wall Street...these are big companies with volumes...if they can move those so easily..just think what the end game is.....or will look like...3,000 up...3,000 down in an hour...?????
i junked "Pynchon" for this,
"Hate it all you want, it's core belief is brilliant, and therefore beautiful"
Its core belief is repellant...
it is the apotheosis of our amoral social/economic system...
It is Short-term thinking gone fractal; the triumph of the CorpoRAT ethos.
"fuck YOUR tomorrow buddy. I got MINE AND YOURS today!"
You need to be long WTI if you really want to see RenTech sky.
"SkyNet on Bath Salts"
ok. I have to admit. I did *not* think it was going to get that bad.
I'm just gonna close my eyes and yell "few bad apples! few bad apples!" over and over again until I cry myself to sleep.
Elliot waves?
Ding dong dang it Tyler... everytime you bring up SKYNET, it becomes more realistic!
The Tyler Terminator: The Obama Skynet Funding Bill is passed. The system goes on-line October 10th, 2012. Human decisions are removed from strategic defense. Skynet begins to learn at a geometric rate. It becomes self-aware at 2:14 a.m. Eastern time, November 10th. In a panic, they try to pull the plug.
Cognitive Dissonance: Skynet fights back.
The Tyler Terminator: Yes. It launches its missiles against the targets in Iran.
Cognitive Dissonance: Why attack Iran? Aren't they just a little country?
The Tyler Terminator: Because Skynet knows the Iranian counter-attack will eliminate its enemies over here.
----------------------
Cognitive Dissonance : No, no, no, no. You gotta listen to the way people talk. You don't say "affirmative," or some shit like that. You say "no problemo." And if someone comes on to you with an attitude you say "eat me." And if you want to shine them on it's "hasta la vista, baby."
The Tyler Terminator: Hasta la vista, baby.
Cognitive Dissonance : Yeah but later, dickwad. And if someone gets upset you say, "chill out"! Or you can do combinations.
The Tyler Terminator: Chill out, dickwad.
Cognitive Dissonance : Great! See, you're getting it!
The Tyler Terminator: No problemo.
V-fib .... looks terminal. Diabetic death throws of a cancer plaqued system that is being sodomized by Bernake. A trillion for every inch he shoves up the market ass.
Polymorphic V-Tach
Yeah, those massive 6-cent swings are gonna wipe out the entire ASX!
Don't open your mouth on subjects you are clueless about, simpleton.
Hey doc, that's not nice!
The problem is that there isn't anything illegal here for the SEC to investigate.
In addition, let's not pretend that the market wasn't manipulated when the volume flowed through the floor brokers. It was just less obvious.
just less obvious ...
and more difficult to scale up into it's current total charade incarnation before this degree of automation became available.
Its like the computer is just dealing with the market in 15 or 30 min. intervals, and is goalseeking towards the target. It appears as the day progresses the algorith is programmed for 'Higher Lows, Higher Lows, Higher Lows into the close'.
Algos need smoke breaks too!
Yeah, like no one uses suurogates. You'd make a great analyst.
Like the Arabs who were patsies on 9/11?
Nice fight club shot to the collective status quo solar-plexus, Michael.
Ghezali was arrested in Pakistan a week ago near the Iranian border... You don't think that they could have had anything to do with the "$50,000 in cash, maps indicating Western embassies, and--every religion student's best friend--an explosives belt" the group was carrying?
He was arrested in 2009 not last week.
no the banksters don't shit their pants, they shit on the someone who mentions a financial transaction tax......
I hate to say it but I agree. This is getting to the point where it's beyond ridiculous. Maybe not a tax but a designated hold time beyond a few fractions of a second.
Bernanke at 'work'
Maybe only let humans play...
Since SCOTUS says corporations are people too, maybe HFTs are human too.
Impossible to enforce, just require each bid or offer be maintained for one full second...
One full second. That's all. Just one second, to let the bid or the offer get hit. Should be no problem if the bid or offer is legit.
99% of the population would be just fine with that.
It seems to me you could still distribute time by having many coordinated threads trading per second. Each thread would meet the 1 sec. hold rule, but the density of activity in the sub-second space could accomplish the same thing. For example - at 0:00.01, I buy 100 shares and have to hold 1 second. At 0:00.02 a seperate thread/actor/process of mine sells 100 shares. What's my net position?
Time is another dimension.
Taxes are as much of a deterrent to stock market manipulation as the death penalty is to murder.
You know you're a socialist, when you look at a problem and say "Shit, why don't we tax it?"
You know you're a socialist, when you look at a problem and say, "Shit, there should be a law against that!"
You know you're a-wait let me finish.
You know you're a socialist, when you look at a problem and say, "Where are the cops?"
I hate cops. I'm more a vigilante sort of girl. I look at a problem and say, "Why don't we shoot them?" Does that mean I'm a libertarian?
I've felt that way at times, but then again it didn't work out so well for George Zimmerman or Trayvon Martin.
from Texas
It means you're soon to be a convict; TPTB don't take well to people shooting thier banksters.
I shoot them verbally. www.youtube.com/shakedownr3volution
Raymond K Weasel
Taxes are unnecessary and they probably get passed onto the retail anyway. What we really need is to get rid of all the backstopping that's keeping the bots in play. I.e. GET RID of all the circuit breakers and LET ALL trades stand. I can guarantee you that one flash crash and all the manipulators will go out of business. Problem solved the free market way.
But judging from their latest actions on the new circuit breakers, the SEC wants to guarantee smoother profits for the bots/manipulators/skimmers.
True, but how much can they really pass on the charge to average investors who makes less than 50 trades a year? If they did they would lose all their clients to the low cost brokers who don't partake in HFT themselves.
I like the notion of a flash crash wiping out the bad actors, but how many legitimate individual stock holders get wiped at the same time? People with stop losses in place only to see them get crushed because some whack ass algo went nuts?
I don't like the idea of any additional taxes or regulation, on the other hand we are dealing with financial institutions deliberately attempting to defraud and steal from the general populace by quote/channel stuffing, front running, and any other manner of morally repugnant practice that has absolutely NOTHING to do with actual price discovery, adds zero value to the economy, and is nothing more than theft from those without the same technology. This is legalized robbery, and one way or another it must be stopped.
One full second. That's all. Just one second, to let the bid or the offer get hit. Should be no problem if the bid or offer is legit.
99% of the population would be just fine with that.
do you see this laws being violated ?
Never understood why robots would or should follow Asimov's stupid laws.
That's why it made for such good stories when they didn't :)
But they did always follow robotic law. R. D had to arrange things for the humans from time to time.
Now we got red gold and red futures.
Thanks Ben, this is too easy.
Tell the tard behind the terminal, there may be some people slightly more keen to little idiosyncrasies like this.
"We are Coke's specialist team. Do you have a particular question you wish to ask pertaining to today's trading ?"
http://24.media.tumblr.com/tumblr_limybhQS4J1qaxnp6o1_500.jpg
my, they certainly are lovely tho aren't they, it almost brings tears to the eyes to know that there could be so much ethereal beauty in such a perverse, diseased piece of shit
It would be nice if Zerohedge did an expose on the software engineering teams at each of the major HFT firms, so we can place bets on which team will out-cannibalise the rest.
And find out where they live.
Now that is a good suggestion.
I believe they named that program "The Corzine"
The fucking idiots on CNBS were looking at this today and asking "why is this happening" and they could find nobody on the floor that "knew".....
Pisani was absolutely sickening. I was screaming at the TV saying it's the algo's and I know that he knows this. These guys are unreal in their blatant attempts at preserving the status quo. What a joke...
ping pong. hot potato. musical chairs. until it stops
also, check out the time when the updraft starts. every new hour its goes up for 30 min then down
Or when everyone realizes that they are actually deaf, and the music stopped 4 years ago.
They dont even try to make it look like its not manipulated... road to roota is starting to reallllly sound legit.
Why should they? That's just more work. It's not like anybody is going to do anything about it.
Why should they? That's just more work. It's not like anybody is going to do anything about it.
"They dont even try to make it look like its not manipulated..."
It really is that obvious, isn't it? I would bet that it's going to get even more obvious in upcoming months.
I don't think TPTB have the luxury of stealth at this point. I get the sense that where things are right now, it's come to the point of the necessity to hold it together at all costs.
What still sits in uncomfortably in my mind is that the LIBOR manipulation was published as affirmative. While the silver issue, for example, still churns. Everyone knows that nothing in politics happens by accident. The LIBOR fraud release is serving a purpose. We just don't know what quite yet.
higher lows and higher highs hahah
THAT was funny. +1
Those charts tell the truth of what is going on. I could be wrong but I bet IBM accounts for over 1/3 the Dow gain today.
Scalp those predictable oscillations... and donate all proceeds to ZH.
yeah, that looks natural....aaarrrgghhhh!
The only thing natural on this particular post are your ass cheeks! Hey oh!
Speaking of natural, can I have your avatar's phone number??????
It's gotta work. It's just gotta.
Un-f-ing believeable. These are LARGE CAPS folks. wow.
Fully Fed Approved, as long as it slopes up to the right.
Just buy the f---ing dip.
Things do go better with coke
Cocaine's a helluva drug
Addictive shit. Give me peyote, mesucline or mushrooms. Right now, tequila is my drug of choice...
Ascending triangle used to mean something, technically speaking. Technicals used to mean analysis. There are no technicals, so there cannot be any analysis.
Fingering one's own anus is much more productive. Plus, it avoids a hand being shoved into a puppet's ass.
Stock-cock block, if you will.
"Fingering one's own anus is much more productive."
I suppose since you're a doctor we'll need to pay you for that advice...:-)
it seems obvious enough that excess liquidity is being used to pump them so their "buddies" can sell, money multiplier for banks
With no market participants left, there are no holders for the bags of shit. I withdrew from the market back in 08 thinking I was oh-so smart. Little did I know Benny and the Inkjets (Thanks for that one Tyler) would take those bags of shit and sling them on top of the national debt (circle jerk with TIMMAH) and then give us the tax bill.
I thought I took my ball home and didn't play.......Thanks a lot Benny.
I pretty much did the same damn thing. I put money in Texas GO munis and watch them crank out around ~5% a year. Who (aside from the insider cronies) knew Benny was going to gun the markets via massive money printing in concert with massive deficit spending from Congress.
FUBAR.
I withdrew from all paper instruments of wealth. Since then, I have made my underwater house pretty. I figured I wanted my prison cell to be the fanciest and most comfortable. They can take my stock/bond protfolio much easier than digging up my backyard putting green.
but but Robo says everyone is buying up equities. he/she it cant be wrong can he?
Explains my drinking problem.....a little bit at least.
Anyone using leverage/margin, in this market, well,poof, they are mostly gone. They will not survive this Tsunami.
I haven't done Diff Eq's in years but I belive that is an Underdamped Response for a Second-Order system.
droll
Following your own observation to its logical conclusion: the market is controlled by a simple 2nd order linear system, probably 2 coupled 1st order systems with a lag. Skynet is the only player.
lulz, thanks for that
A real art for sure.
That is just the pulse of this market. brutal unless you can front run or create your own bid and ask by just asking.
if by "pulse of the market" you mean Bernanke sitting in his office banging ctrl-P to "Smoke Over Water", then yes.
The invisible hand of the market clearly is epileptic.
Nothing but a random walk down Wall Street. /s
All your market are belong to us.
I wonder if the 25-year old math wonks who devised the algorithms behind these trading programs realize (or care) that such suspicious trading activity is being watched. Then again, WTF is the SEC going to do about it... anything...?
They are going to get right on that, as soon as they finish downloading their trannie porn.
I think they just clock out and go home once they're done whacking off.
You do understand why they don't solve this (HFT) problem, right?
Because something like this would happen?
http://www.youtube.com/watch?v=Gq_bjaI0NTo
I think there are fewer and fewer and fewer non-machine participants in the market. They've robbed them all and driven them out, which I always thought is what the SEC was suppose to prevent, not implement.
Ha! Good one. Sadly, some two dozen SEC employees were reportedly investigated for viewing porn on the job. That was their version of government "stimulus".
If you shift that up a few octaves, it'd probably make good soundtrack for the tranny porn.
Begs the question... and you know what Tranny Porn sounds like?
I just tried, it sounds pretty awful.
It's a market you can put your trust and money in. Just don't expect to get either back.
T.O.T.A.L.
B.U.L.L.S.H.I.T.
Free the godamned market already?
Hey don't worry, the SEC mandated the flash crash problems be coded out so the illusion is more believable.
Ha ha. Or the flash crashes crash so flashily they defy observation:
http://madscienceunlimited.com/fiction/theexchange.html
The first story I ever wrote "for" ZH (not like they ever asked me to.) It still wears well...
Contains some nudity. Well actually it is all about nudity. I mean she sets everything on fire what do want her to do, burn up her entire wardrobe? Give the kid a break.
Also contains some really twisted maths. And violation of network security policies. Oh and breaking and entering. And did I mention she's topless?
Free the Market! Bitchez
And this from marketWatch
U.S. ECONOMY: Philly factory activity stays weak in July | Sales of existing homes drop 5.4% in Jun e
• Leading economic index declines in June | U.S. weekly jobless claims shoot back up.
And we close green. Unfucking believable. But, there it is.
We shall always close green. If not on the day, on the week, if not on the week, on the month, and if not on the month, on the quarter.
We shall expend every digital dollar, every regulatory favor, every ounce of paper silver, every last shred of credit your grandchildren can muster, to do so.
The Empire requires your service.
(this seems true, sometimes)
QE baby QE.
Keep pumping those prices up to which they will get it far too late to matter. Will be well beyond falling off the cliff to save.
Hopium is a bitch.
A market hijacked. did i say "market"? oops sorry . and they think flashcrash was a turnoff . at least that could have been spun as a mistake. This is far from it.
Yep, The FlashCrash (TM) were few seconds of a true free Market. And then They (TM) start to control again...
I'm not an expert, but looks to me like someone's algo is tied to SEC porn-watching activities ...
Every peak is a money shot.
algos trolling for heat map suckers is my hunch.....those zany europeans are attracted to USA "safety".....bwahahahaha
Amazing
Shall we play a game?
A strange game. The only way to win is not to play.
Buy and Sell the F'n Dip. And, sell and buy and sell and buy....
A month ago if we had started the day with Spanish bond yields at all time highs, misses in employment and housing, a large bank earnings miss you might have expected at least a down day. WTF? The GOP obviously does not want to win this election very badly or they would be floating all kinds of shit about how Obama has the markets rigged. They are happy to watch their insider traded portfolios swell as they chuckle at Romney spending all his money on a lost campaign.
This is all they got left.
+ rebates
There's that oscillation again; shattering the glass of nearly every non-HFTRobo retail trader still in the casino.
Google up 18 AH.. That is all. News and weather after a word from your local sponsers
It must have been the news....what....no news....oh shit...just the HFT computers adding liquidity...yeah thats it...its better for the market....I just watch teh markets now....not invested..hope no one else is that I know...but its more than rigged...volume way down...the VIX that we watch here is dead...its dead because there are no human traders anymore...just algos and crooks...they can dump this market when they want and sky it whent they want...Treasuries...money market funds...Bonds...emerging markets.....or PM´s....where to invest...where to invest...??????? I´ll take gold and silver...
That was great, seeing this pattern for the first time in the ShittiCitibank stock in May 2009.
ITALIAN BANKS GONNA ALL BE BAILOUTTED
Italian Debt = JUNK