Day after day after day this 'market' is manipulated and managed by headlines that memory-less machines read and act upon. Today - yet again - at 210am Japan time, Nikkei news decides it is time to print these headlines:
*JAPAN GPIF TO CUT JAPAN DEBT ALLOCATION TO 35%, RAISE DOMESTIC STOCK ALLOCATION TO 25%: NIKKEI
And sure enough JPY explodes instantly in an attempt to spark momentum. This is not news (it's a constant headline every day since October 18th [5]) as Abe sacrifices his economy and his people's economic future for an uptick in stocks.
The algos react and lift USDJPY
[6]
and of course that means US equities surge...
[7]
and this is what happened as the headline hit...
15,263 eMini's in 1 second at 13:19:19 $ES_F [8] $SPY [9]
— Eric Scott Hunsader (@nanexllc) October 30, 2014 [10]
$550 Million worth of stock traded when EMini popped at 13:19:19
— Eric Scott Hunsader (@nanexllc) October 30, 2014 [11]
That was a record for most eMini's traded in a second (excluding market close and the freak event on 1/13/2010) $ES_F [8]
— Eric Scott Hunsader (@nanexllc) October 30, 2014 [12]
and volume explodes...
[13]
The irony in all of this: this is not news, its 12 days old. [5]
[14]
But when betting on algo stupidity and their 15 millisecond memory, nobody has lost yet.
