"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

Thursday, April 12, 2012

Natural Gas Inventory Release April 12, 2012

Natural Gas inventory level change came in at 32% of what was expected and here what the computers did.  Something to consider would be how far you are from the exchange.  By the time this information got to you, it could very well be considered a stale price that is now, a near 200ms later, all information.  Pretty scary stuff we're allowing into the deep infrastructure of our markets.  Given the lax behavior from the SEC and the well rooted corruption in American politics, this type of trading will only go away when a newer, less known form pops up.  You guys see us post things daily and Nanex is out nearly everyday showing more detailed, more shocking findings and yet Academics continue to sit around debating the issue and forcing Nanex to listen to Manoj Narang drivel regarding how great HFT is when measured using EOD prices.  I know the SEC would rather sit around and watch TV (or Bree Olson) but most of us have real shit to do and this whole dog and pony show about protecting us and legitimizing markets, etc is becoming old.  I'm tired of calling bullshit every, single day on these Phantom Regulators.

You can see at 10:30:00 the depth of bids on the book exploded from a few hundred to over 2,000 contracts

Here is a zoom of the moments leading up to the 10:30 release

UNG 1-Minute Chart

UNG was traded with recognizable algorithmic sequences

The triangles represent ISO (Intermarket Sweep Order) trades and the circles represent a collection various types of trades.  Read more on ISO orders and why these are expected to become more regular data points here.