Tuesday, August 26, 2014

The Skynet Pump and Dump: Primed for Implosion

"For those who fear 'the big one', for those who understand market liquidity, for those who got a glimpse of what happens when large crowds meet small doors in the high-yield credit market, today's "broken" market was a cold hard lesson"
BTFATH over and over again on miniscule volume, money printing, record margin debt, and HFT momentum-ignition, and then drop the entire contrivance from high altitude to see what happens:


Today's SPY (S&P ETF) hourly volume was lower than Christmas Eve, which was a half day of trading:
Dec. 24th, 2013: 45,368,800 [3.5 hours]
Aug. 26th, 2014: 47,257,300 [6.5 hours]
On an hourly basis, it was the lowest volume since April 2007

HFT is a glitch-ridden pile of shit:

Today, retail investors were "locked out" of their favourite momentum stocks for a period of time longer than during the 2010 Flash Crash. Meanwhile, the Globex futures market was unexpectedly offline on Sunday evening for four hours. Last week, the BATShit exchange broke causing dozens of single stock flash crashes. 

If the Made-by-Mattel HFT bots are breaking now, what does that portend when real selling appears for the first time in three years?

Skynet's trick is to pump the low share count recent IPOs, like Puma Biotech, the $8 billion dollar company with no sales:



Can't handle the volume: Skynet is now front-running itself:



IPO Update: At least five gaps below, which will all get filled when the rocket ride ends


WTF?
NYSE Momentum Oscillator 50 DMA 



The Nasdaq's New Highs Lies
This should not be mathematically possible, there are 2600 stocks in the Nasdaq: