Time for our now daily flash-crash segment. After on Friday, LQD flash crashed and several tens of thousand shares traded courtesy of some rogue algo, only to be DKed subsequently, a crash that mind you saw the very suspicious absence of Waddell & Reed in its execution, it is about that time, when 24 hours later we need, nay demand, another flash crash. After all why would all those who claims our markets are beyond busted be taken seriously if there wasn't a daily flash crash somehow, somewhere. Luckily, here comes Century Aluminum (CENX) to prove all those naysayers absolutely correct once again. Oh, and just like in LQD and who knows how many times before, no circuit breakers were triggered: remember that SEC lie that stocks would never drop below 10% of the NBBO following some latent version of SkyNet hitting the tape? A week ago we demonstrated out how PGN dropped from $44 to $4 in one millisecond. Today, CENX dropped by 17% (way beyond the circuit breaker threshold), before trading resumed at previous levels. As for all those who made a killing by taking advantage of broken algorithms? Sorry, you are out of luck again - several hundred thousand shares ended up in the trash basket again.
Pursuant to Rule 11890(b) NASDAQ and NASDAQ BX, on its own motion, has determined to cancel all trades in security Century Aluminum Company (CENX) at or below $11.61 that were executed in NASDAQ and NASDAQ BX between 12:06:00 and 12:07:00 ET. This decision cannot be appealed. MarketWatch has coordinated this decision with other UTP Exchanges. NASDAQ will be canceling trades on the participant’s behalf.
So if you had a stop loss order at $11.62, you are fucked.
And if you were not trading CENX, and don't care what happened to some unlucky fools who lost 10% just because they were in the wrong place, and the wrong time, how long before the flash crash train hits a stock you do care about?
We eagerly await for the SEC to point out where, in what is now a daily flash crash occurrence, did W&R's unpatriotic and outright terrorist attempt to hedge itself occur and destroy the last remaining margin of confidence in what is now SkyNet's stomping grounds.
And the trade audit:
And some additional observations, courtesy of Nanex:
.....seems that BATS starts to stub as soon as high volatility is detected.....don't think that had much to do with the plunge here but it is interesting to see:
here's where the trades occured:
Bottom line: no scapegoat available this time, although we are confident that once the teleprompter is done blaming the previous regime for increasing US debt by $2+ trillion in under two years, he will blame the First Regional Bank of Kansas for killing Lehman.
THIS IS NO LONGER A MARKET WHERE ANYONE HAS EVEN A REMOTELY FAIR CHANCE OF MAKING MONEY: THIS IS, FOR LACK OF A BETTER WORD, SEC-ENDORSED BULLSHIT, IN WHICH THE DEREGULATION OF MARKET STRUCTURE ALLOWS FLASH CRASHES TO NOW BE A DAILY OCCURRENCE. TAKE YOUR MONEY AND RUN NOW.