We discussed the theory about the incessant stop-runs and 'momentum-ignition' [3] that algos employ to suck retail dollars into their vortex. Now we have, from our friends at Nanex, a perfect example in reality. On the day of Facebook's IPO, when every man, woman, child, and rabbit with skin-in-the-game was hoping for this social monster to go to the moon and fix California's tax crisis, the algos were indeed hard at work all that day to try and ignite the IPO's failing performance. Sometimes, however, the magic doesn't work.
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Charts: Nanex