"We risk becoming the best informed society that has ever died of ignorance"
- Rubén Blades

"You can't make up anything anymore. The world itself is a satire. All you're doing is recording it"
- Art Buchwald

"It's getting exciting now, two and one-half. Think of everything we've accomplished, man. Out these windows, we will view the collapse of financial history. One step closer to economic equilibrium"
- Tyler Durden

"It is your corrupt we claim. It is your evil that will be sought by us. With every breath, we shall hunt them down."
- Boondock Saints

Wednesday, October 5, 2011

Nothing To See Here, Move Along

I'm not even going to waste time with humorous sentences or a big intro.  I just want you to pull a Yahoo chart for today and look at the price movement.  Does the chart make you think that it was traders, worldwide, pilling into Yahoo?  Or could it be something perhaps a little more sinister?

Basically, HFT Alert is the most incredbile platform I've dealt with.  Here is what happened to Yahoo today from 14:45:00 to 14:54:00.  Everything started to go berserk on HFT Alert Pro, the flashing caught my eye and I followed this one closely, trying to understand how everyone and their mother stands to be a buyer of Yahoo's firm


Raw Quote Bursts
These came in droves as HFT began to use its light-speed ability to game the market.  Around this time also, I heard over the Trader's Audio that NASDAQ seemed to be delayed.  Clearly the bots decided to pounce like a gang of Marines coming to help a fallen brother.

Here are what the columns mean (breakdown from HFT Alert Pro Manual):

Time:  Time of occurrence in HH:MM:SS
Symbol:  Symbol of stock.
Exg:  Exchange quotes are reported from in the sequence.
Elps:  The elapsed time of the sequence in MM:SS format.
STRG:  #Quotes recorded in the sequence from the specific exchange.
IQTS  #Quotes from other reporting exchanges in the sequence.
BBO:  #Of times quotes were the BBO.
CBBO:  #Of times quotes were the BBO and changed the BBO.
TRD:  #Trades recorded in the sequence.
ETRD:  #Trades recorded in the sequence from the specific exchange.

Bob Pasani would probably attribute this rise to some far-fetched Greece banking news (idiot) but thanks to the NANEX crew and the HFT Alert branch of distribution, we can see the truth.  Yahoo quotes were incredibly high in this picture, most of which hit on the NASDAQ and could have been the cause of the slow down in pricing.  Since Mary Shapiro won't step down amid evidence of her organization's incredible short-comings, we're willing to bet this was tied to the "FASTASECOND" algo that used Yahoo to make enough money for a retirement package (read the research from NANEX here).

HFT Alert Graphic Screen
Here is the sequence graph with the arrow pointing to the time period highlighted above

Now lets leave this and skip forward 3 seconds, to 14:48.  Notice the defining large peak on the Graphic Screen (just before 14:49)?  Let's examine that a little further.  The image below is from the later half of the 48 minute mark.

Here we'll look at minute number 48 during the Yahoo manipulation at the back end of the 2 o'clock time period

Raw Quote Bursts

HFT Alert Graphic Screen 
Graphical breakdown of the level of HFT activity between 2:48 and 2:50 this afternoon

As long as the SEC wants to blame this on rogue traders expect this happen over and over and over.  Except that now a days there will be traders like myself piggy backing on this, reminding many of us of the traders who rode along with JP Morgan during the Silver manipulation time period.  Hopefully someone will stop this but in the mean time I plan to try and secure a new home on a nice island so when this shit does bring the American and world financial system down, I'll be right where I need to be, on the beach.