I just landed in LaGuardia from Dallas, and was surprised to see the Dow was down 1,000 points today.

To clarify the 100% cash position, that is in the long short aggressive accounts. We are far less aggressive in our asset allocation model, which typically is far less exposed to equities anyway.

More when I get settled in back at home.

Category: Markets

Please use the comments to demonstrate your own ignorance, unfamiliarity with empirical data and lack of respect for scientific knowledge. Be sure to create straw men and argue against things I have neither said nor implied. If you could repeat previously discredited memes or steer the conversation into irrelevant, off topic discussions, it would be appreciated. Lastly, kindly forgo all civility in your discourse . . . you are, after all, anonymous.

122 Responses to “Down How Much?”

  1. helge58 says:

    Clearly, it pays to have some loooooooooow bids in place.

  2. franklin411 says:

    I put in a buy @ the market order for PM when it was at $38, and it was filled at $46. It was never -1000, IMO. I’m not too upset because $46 is still a bargain and this is my IRA, which I expect to cash in in about 40 years.

  3. Ny Stock Guy says:

    Oh, NOW you tell us….

    It is scary how the market plunges right after you say you are all in cash.

  4. Mannwich says:

    Yes, BR. Heckuva cash call on your part. Nailed it head on.

  5. emmanuel117 says:

    Some music for Barry.

  6. uncmed says:

    Franklin, I like that play a lot. I got in a while ago around 49 and am thinking about increasing my exposure.

  7. helge58 says:

    Most everyone with a stop-loss in place must have gotten blown out their positions.
    Lost of unhappy people.
    Margin calls in the AM.

  8. DC says:

    “Where are the regulators???!!!”

    - Screeching anti-regulation harpy Maria Bartiromo, 2:50pm

  9. mbelardes says:

    Break out the Dow 10,000 hat when you get home.

  10. Apologies if this is an obvious question; but when you say 100% cash do you mean:
    a). 100% in cash (i.e. no positions)
    b). Long and Short Positions, but with 0% net equity exposure (though obviously, you have exposure to other factor risks).

    I only ask because there’s a subtle difference between the two (or perhaps, I’m easily confused).

    ~~~

    BR: 100% Cash means precisely what it sounds like

    Net 0 exposure — or market neutral — is something else.

  11. rustum says:

    Few more jitters like this, it will shake off the confidence.

  12. gordo365 says:

    Clearly – the short sellers caused this. Look for a senate hearing coming soon…

  13. X on the MTA says:

    A bunch of my stops fired off today, but on the upside, some of my low-ball GTCs did too. All in all–stomach churning moments and all–pretty fun day. We’ll see what the reaction of the employment situation is tomorrow and if the EUR thing cleans up or gets worse over the weekend.

    My favorite buys of the day were a bunch of ING preferred shares during one of the plunges. Now let’s just hope they don’t turn go under as a result of the sov debt crisis

  14. dss says:

    Those hedgies got all of their algo’s going one way, down. Santelli is talking about how this was caused by HFT.

  15. Mannwich says:

    @gordo: I was saying the same thing earlier. How long before a universal ban on shorting all stocks? Heck, might as well ban any price decreases on all assets. Problem solved!

  16. ashpelham2 says:

    I see a sizeable rally tomorrow, then some tension over the weekend from Europe, followed by god-only-knows next week.

    Affirmative on the margin calls tomorrow morning, possibly liquidating more positions. GOLD is a HOLD for right now.

  17. Mannwich says:

    Maybe, ash, but many online brokers were down today, so we could see some nervous retail selling happen tomorrow that would have happened today.

    I also think we rally either tomorrow or Monday, but who knows?

  18. Alan says:

    Wasn’t there a day like this in March of 2000? Though, I don’t think anyone back then blamed it on a fat finger. Heh

  19. Mannwich says:

    @Alan: Well, there’s far more fat people in this country 10 years later. ;-)

  20. call me ahab says:

    Maria Bartiromo can XXXX XX-

    where the fuck is she when the Fed allows the TBTF’s to game the market?

    anything that causes the market to go up whether complete bullshit and lies is perfectly acceptable

  21. Alan says:

    Well it wasn’t me. I’ve been eating paleo for quite a while now. :)

  22. Diamonic says:

    The Show Has Ended – Now We go up, I closed my shorts and will sell S&P futures at 1155+

  23. call me ahab says:

    . . .and of course the excuse is “trader error”- you see it wasn’t your normal run of the mill crash- but just an error-

    see folks everything is ok- it was just a mistake- carry on with your bullish ways-

    of course- is it ever trader error that makes the market jump- OF COURSE NOT- those are wise investment decsions-

    got it?

  24. Mannwich says:

    Not me either, Alan.

  25. leftback says:

    Nice work again, Mr. Ritholtz… you jumped from the burning building just in time.

    I am going to miss Cognos – after his quant fund probably flamed out this afternoon.
    Really have no call on the near term trade, but I think we have now seen the top for 2010.
    ECRI pointing to a slowdown and financial reform means we see Deleveraging, PART DEUX.

    Actually found today rather frightening, despite making money, more scary than 2008.
    Where will this all end? In a true bear market bottom, one hopes.

  26. scharfy says:

    I love the modern world. We just had a computerized ’87 crash and rally in 15 minutes.

    The Algo’s are now drinking beers at virtual bars and trading HFT war stories….

  27. dss says:

    @ahab,

    Tell us how you really feel!

  28. contrabandista13 says:

    come on fellas….. give me a break… Stay cool….. this is tech buziness…. back in 04 or 05 i was long gold at about 440….. i woke up checked the market and it was unchanged, went to the bathroom did the 3 S’s came back out and prices were up 73 dollars on the mini… i couldn’t get my fingers to move fast enough and by the time i sold i think that i made a buck, if that…………. It’s not the fat finger or the error…. it’s simply that we can not react fast enough…. my lesson did not go unlearned…… these days i place limit orders in the extreme and today was the best year that i’ve ever had…. let’s just all give a big hand to NNT (Taleb)….. Bet the pennies to make the dollars and not the other way around…. sooner or later and i’m not talking about geological time, you’re going to get lucky……. today i’m a hero, tomorrow I’ll be a zero…. who gives a shit….?

    Best regards,

    Econolicious

  29. DeDude says:

    “Most everyone with a stop-loss in place must have gotten blown out their positions”

    Yes talk about milking the stop-loss crowd. Lots of happy Wall Street banksters and lots of unhappy main street investors. They never run out of “financial innovation” do they ;-(

  30. Mike in Nola says:

    Lefty: you think his top hat is floating down the East River?

    BTW, anyone see the story on the CNBC site that a trader error caused a big plunge near the last hour. What resilient, failsafe system we have.
    http://www.cnbc.com/id/36999483

  31. cheese says:

    I agree w/ scharfy TOTALLY!

    The LAST THING the banks are gonna cop to in the HFT desk. “Oh……..some fat-ass hit a B instead of an M”?

    Are you fucking kidding me?

    This has HFT written all over it.

    Small wonder this happened 15 min after trading curbs were lifted for the day????

    You wanna know exchange rules, in all their glorious minutia? Ask the programmer for an HFT desk.

    This was 87.

    The good thing is communication is sooooo much better. Once the algo traders realized what was happening……….they turned them off………..that still left about 2 minutes of orders executing…

    I’m a agnostic on HFT………still am. Would’ve hated to be one of those moms or pops who had an “emergency” sell stop in PG @ $55…………can you imagine that fill?!

  32. call me ahab says:

    ding ding ding ding ding-

    Scharfy get’s the prize for making the most astute observation today!!! Got a chuckle out of me too :D

    dss-

    good thing I sugar coated it- lol

  33. KidDynamite says:

    it’s all your fault, Barry! word got out that you were ONE HUNDRED PERCENT CASH and everyone went running for the hills. NOW you clarify??? ;-)

  34. WolfStreet says:

    “Down how much?” were I paranoid, I’d dare think that the stuff’s been (briefly) down enough to screw up most long Stop Loss, and also down enough to suck in a fair enough pack of bearz.

  35. cognos says:

    And that my friends… is why you DONT USE STOPS.

    Somebody “stopped” themselves into a -20% day.

    Hope somebody here got some AAPL at 199. Wow! Free money.

  36. mbelardes says:

    Barry proved that some of this game is luck.

    Check the daily on PG. Some genius over at Citi allegedly pushed through a sell order on the Nasdaq for a billion shares instead of a million. Oops. That explains the 600 points of this.

    Now the questions are:

    1) Does this failure of a Citi employee now qualify them to be on the Board?

    2) Was the person responsible of Greek heritage?

    3) Was Vikram Pandit even aware that Citi still has trading desks?

  37. call me ahab says:

    gee- what happens when somebody buys a billion of something- I wonder if the price goes up?

    and also- that’s what it’s all about- right cognos?

    free money-

    you should be very proud of the Fed who has led the way with that philosophy

  38. leftback says:

    Leaving aside the amusing sideshow known as the US stock market, the credit markets are showing renewed signs of stress, especially in regard to Europe and in the banking industry. The FX and bond markets usually stay closer to reality, and demand for dollars and Treasuries has been picking up for weeks now.

    Don’t for one moment think that this was a one-off “phat phinger” event, or that happy days are here again.

  39. “Don’t for one moment think that this was a one-off “phat phinger” event” lb, above

    Totally, that story is B*******.

  40. subscriptionblocker says:

    “Phatt phingers” are better excuse than traders watching pornos?

  41. Transor Z says:

    I declare that May 6th shall forevermore be known as

    Barry Ritholtz’s “Straight Cash, Homies” Day

  42. Tezzer says:

    The CNBC video with Cramer, et. al. watching P&G drop and rise 30% in real time and calling trades is kind of awesome:

    http://www.cnbc.com/id/15840232/?video=1487022682&play=1

  43. DeDude says:

    I guess the new STOP-LOSS orders will include a 1-4 hour “below the limit” requirement before they are executed. Fool me once shame on you – fool me twice …………..ehhh…….hehe………I can’t be fooled again.

  44. cheese says:

    +2……..

    “fat fingers” happens every god damn day! how many traders are there in the world? Of course they hit a wrong key every now and then……….

    Are you really telling me that a major U.S. financial institution doesn’t ITSELF have an internal software “backtsop”?

    If you really want to execute a $16 Billion order………..what is 3 seconds to answer a confirmation box “Click YES if you really meant SELL $16 Billion”………..?

    Retail has it………But, the prop desks at Citi are too sophisticated?

    I can’t even believe CNBC actually reported that.

    I’d be embarrassed to be a producer there.

  45. Jonathan says:

    If you ask me, the market tanked BECAUSE Barry went into all cash. ;)

  46. emmanuel117 says:

    @Jonathan

    Barry killed the recovery!

  47. catman says:

    BR – Thanks for the nudge. I have been scaling out of a closed end position that reached NAV parity. Saw your comment and finished the job first thing this morning – and I won three bucks playing golf today!

  48. Mr.E. says:

    Battle of the computers – stops getting hit got it down below the Jan highs – short/sell algos kick in – get down to the Feb lows and cover/ buy algos kick in. Add a little panic to speed it up on the way down and you get some record making moves. All in day’s fun.

    WAG on my part but my guess is the Jan highs will now prove to be solid resistance and we will see more downside in the days/weeks ahead.

  49. Mitchman says:

    Dear Friends,

    this is the beginning of the great unraveling. For the nbetter part of two years, the Fed and the Treasury have been rtying to pull over our eyes telling us about how things are getting better while we have had an artificial “rally” all based on light volume and on the theory that we could print our way out of the problem.

    Today, the chickens have come home to roost. Anyone who honestly belives that today’s drop was caused by computer “errors” (as opposed to the al;gorithm-based programs of the bug banks) is welcome to make an offer on the bridge I have for sale here in Brooklyn.

    Just watch what the Nikkei does when it opens tonight in Tokyo just the way I watched it last night to see what was going to happen here today. Tokyo is one place where blowing smoke is not quite as easy to do to a not quite as gullible a public as it is here in the good old US of A.

  50. Darkness says:

    Close out your positions, Barry is getting on a plane!

  51. Livermore Shimervore says:

    bah….computers. Inventions of Lucifer.
    too many people sitting long for dreadfully too long.
    the sharp fellows are looking for an excuse to buy a summer cottage in Atlantic City.
    The Greeks and the China property bubble will surely provide them with the means for a Packard or two.
    Heed the early warnings when the fat cats are already cashing in today’s winnings because there’s more to come boys.

  52. nhr_215 says:

    Regardless of any “trading malfunction,” the market has just given up 70% of the gains form this year in a couple of weeks…

    And it makes sense. The market has gotten way ahead of the fundamentals. Bottom line is we have high unemployment for foreseeable future and a housing market that will likely decline further and certainly has not rebounded (price-level wise). You can not have a real recovery without those. GDP is still lower than before the recession. We are likely in for not great returns for the next year or two…. There is no free lunch. And now that the government has stepped back, there truly is no free lunch.

  53. johnborchers says:

    This is what happens when the market goes up on low volume and hasn’t a good trading base. Just think, all the funds have the stocks. But if no one wants to buy them they have to fall hard due to no bid. Then the funds start to panic that there’s no bid and sell off and away you go.

  54. leftback says:

    Will be interested to see your wrap up and TA perspectives tomorrow, Barry. Well done!

  55. Captain Jack says:

    Anybody notice gold? Up nearly three percent today — thirty-four bucks an ounce on the futures, GLD volume off the charts.

    Fat finger my @#$@#…

  56. Joey says:

    It did get pretty hairy there for a few. I kept taking snap shots of charts that were so grossly oversold yet couldn’t catch a bid. Its indeed plausible an error caused the market to dive so precipitously but at the same time, its not as if the market wasn’t highly risk adverse to begin with.

    Regardless, if you had the stomach for a bid’less trade, one could have done very nicely. There must be 100 or so charts with this similar structure
    http://www.screencast.com/users/BalaB50/folders/Jing/media/1a3f9f1d-4dc7-44b0-90b2-59474b7bf204

  57. constantnormal says:

    I placed a fair amount of buy orders for a $7 stock at 2:42 pm, hoping that things might get low enough that I could pick up some a bit under $7. So I spread the buy orders across 6.90, 6.70 and 6.50 (which I really did not expect to get filled, perhaps none of them would, but you never know …). Looked at a couple of other things, and clicked for a quick price check before I returned to mowing the lawn. $5 and falling. ‘Bout had the Big One. Frantically started looking for WHY???!!!!, did they cut the dividend, did the price of oil plummet, what was going on?

    Absolutely no news, and then the Schwab and Fidelity web order servers died. But by that time it had dawned on me that this wasn’t just my little corner of the market, it was everything.

    And then 5 minutes later, everything had returned to “normal”, and I was sporting a profit. In the best of impossible worlds, I could have (in theory) picked up the shares south of 4.25, but I am more than happy with my 6.70 aggregate cost for a stock that closed at 7.23.

    While it would be mildly interesting to know exactly what happened (almost certainly a software spasm, given the speed with which things plummeted and then recovered), I think the lesson to draw from this is that these markets are really quite fragile, and susceptible to stampedes with any given thunderclap (real or imagined).

    I’ll bet a lotta folks with stop-loss orders got taken out and then had the prices jump back above their exit point before they could do anything about it. Almost certainly Barry has a lotta company that is in 100% cash right now. That could make for a brief rally, perhaps taking us into June before the next thunderclap.

    Chaos, it’s a wunnerful thing.

  58. constantnormal says:

    And here’s a query to the technical analysis folks:

    What did this mean, in a TA sort of way? Are we now poised for a great rally, or poised on the brink of collapse?

  59. deltaverde says:

    Hope this doesn’t get you put on the NO FLY list.

  60. crunched says:

    Give me a f*****g break! TRADING ERROR?!?! Anyone has read ‘The Quants’ has a pretty good idea what happened today.

    May an asteroid crash into the CNBC studios tonight and wipe this scourge from our earth.

  61. panchog says:

    Indeed a good day for a gold bug.

    I fully expect more of these spikes in gold prices, followed by sell-off, then to the higher floor ($1200 is the next floor). IMHO, gold is the currency with no constituents it has to please, ie. the ultimate reserve currency… it is my “cash” position.

  62. Pacific says:

    Great call, luck is happpy with you.

  63. buffaloes2000 says:

    As a trader at a wall street investment bank, I will tell you that the capability is there to have checks in place to avoid making those mistakes….BUT, every trader disables them because every second counts in a fast moving market, and those checks cost you seconds. I would say its possible a fat finger “contributed” to the sell off, but I highly doubt it.

  64. R. Cain says:

    precipitated by GIIPS

    exacerbated by HFT

    concatenated by WTF

  65. PeterR says:

    “Trust” in our trading platforms may evaporate tomorrow.

    Hard to find the proper words for the cliff, the edge of which we are on.

  66. nhr_215 says:

    cognos Says:
    May 6th, 2010 at 4:53 pm
    Hope somebody here got some AAPL at 199. Wow! Free money.

    And I hope someone here didn’t buy AAPL at 277 a few days ago. Wow! Free loss of 12%!

  67. Jonathan says:

    Barry,

    Any word on what this week’s lottery numbers will be?

    Also, what is the date and time for when I will die?

  68. Chief Tomahawk says:

    “I just landed in LaGuardia from Dallas, and was surprised to see the Dow was down 1,000 points today.”

    Yes, it was a multi-undergarment day!

  69. buffaloes2000 says:

    just read on wsj.com that the Chicago Mercantile Exchange reviewed trades executed by Citigroup and saw nothing to lead them to believe there was an error. Way to break the story Fartiromo.

  70. rktbrkr says:

    Where was the Plunge Protection Team when we needed them? The Dow was rocketing toward -1000 when there was a miraculous rebound.

    Now if there is a PPT wouldn’t you want them to act BEFORE the Dow broke -1000? The PPT should also have a cover story or two to calm rattled nerves.

    And if the TBTF banks anticipate hairy times as the Greek drama plays out they’d want to load up on cash.

  71. gregh says:

    i’m curious about the TA too – longest tail ever…

  72. JustinTheSkeptic says:

    rktbrkr, what do you think, “fat fingers,” and “computer hackers,” are?

  73. Marcus Aurelius says:

    No matter the cause, today’s plunge shows how fragile the markets are, and how quickly bag-holders can be created.

  74. JasRas says:

    Regardless of whether it was a fat thumb or someone leaned on the keyboard while having a conversation–the market righted itself and ended in the general area it was heading to before whatever the heck happened. I can tell you cash would’ve been nice. I haven’t experience that fast of a market since the LTCM debacle…

    Those expecting a bounce rally on a Friday….really?! Art Cashin used to always say on our squak that in down markets rallies are not born on Fridays. The best thing would be to try and kill it again w/o the billion share error (or whatever) and leave it on the floor for people to ponder over the weekend. Then a small lift on Monday with a late killing, followed by a “Turn Around Tuesday”…

    A rally on Friday would be pointless, and a flat to slightly positive market will mean more to chew on. People are confused about Europe’s mess and “why does it matter to me”–which means either you didn’t have macro-econ, or didn’t pass…

    I think this will be solved in time for the World Cup, or there are going to be many Euro-politicians canceling their plans to go to the games…. not kidding…

  75. Dennis the menace says:

    Who was the guy complaining that your market calls were too nuanced and there was no money to be made reading this blog?

    Wonder what he’s doing today . . .

  76. Paul Jones says:

    Barry knew the “recovery” was fraud.

  77. Cynic_FA says:

    Who is talking about stops and flops on P&G and AAPL. The real cataclysmic trades were in some ETF’s. Look at the 1 minute charts on IVE, IVW, RSP. These are SP 500 Growth, SP 500 Value, and Equal Weight SP 500. My co-worker got stopped out on IVW and filled at $1. I am serious, $1 or down 98%. I looked at individual trades before I could bring myself to enter buy orders. The vacuum down to zero trade only lasted about 2 minutes. I could not enter my trades fast enough. Got filled on a buy of IVW at $32 off yesterdays $52.

    I am proclaiming HFT to be a threat to national security! Where were the short sale limits on these stocks down 95%? The DOW printed down 1,000 points, but the SP ETF’s printed like the DOW was down 10,000 points.

  78. Daffyorbugs says:

    Little bit of the HFT gone berserk. Good call Barry, and good “Heads up!”.

  79. TripleB says:

    I have a basic/dumb question on institutional orders – do people really type out the word million (or, as happened today erroneously – billion), as in “Sell 1 million shares”?

    Why don’t they just type the number 1,000,000 ?

  80. TakBak04 says:

    TODAY…WHILE BARRY WAS AWAY….Is WHAT HAPPENED! Ended up GOOD for some……BAD for others…We shall see how it all plays out:

    ———

    leftback Says:
    May 6th, 2010 at 5:04 pm

    Leaving aside the amusing sideshow known as the US stock market, the credit markets are showing renewed signs of stress, especially in regard to Europe and in the banking industry. The FX and bond markets usually stay closer to reality, and demand for dollars and Treasuries has been picking up for weeks now.

    Don’t for one moment think that this was a one-off “phat phinger” event, or that happy days are here again.

    —————-
    DeDude Says:
    May 6th, 2010 at 5:26 pm

    I guess the new STOP-LOSS orders will include a 1-4 hour “below the limit” requirement before they are executed. Fool me once shame on you – fool me twice …………..ehhh…….hehe………I can’t be fooled again.

    —————-

    Mr.E. Says:
    May 6th, 2010 at 5:56 pm

    Battle of the computers – stops getting hit got it down below the Jan highs – short/sell algos kick in – get down to the Feb lows and cover/ buy algos kick in. Add a little panic to speed it up on the way down and you get some record making moves. All in day’s fun.

    WAG on my part but my guess is the Jan highs will now prove to be solid resistance and we will see more downside in the days/weeks ahead.

    ———–

    Livermore Shimervore Says:
    May 6th, 2010 at 6:03 pm

    bah….computers. Inventions of Lucifer.
    too many people sitting long for dreadfully too long.
    the sharp fellows are looking for an excuse to buy a summer cottage in Atlantic City.
    The Greeks and the China property bubble will surely provide them with the means for a Packard or two.
    Heed the early warnings when the fat cats are already cashing in today’s winnings because there’s more to come boys.

    —————–
    constantnormal Says:
    May 6th, 2010 at 6:29 pm

    I placed a fair amount of buy orders for a $7 stock at 2:42 pm, hoping that things might get low enough that I could pick up some a bit under $7. So I spread the buy orders across 6.90, 6.70 and 6.50 (which I really did not expect to get filled, perhaps none of them would, but you never know …). Looked at a couple of other things, and clicked for a quick price check before I returned to mowing the lawn. $5 and falling. ‘Bout had the Big One. Frantically started looking for WHY???!!!!, did they cut the dividend, did the price of oil plummet, what was going on?

    Absolutely no news, and then the Schwab and Fidelity web order servers died. But by that time it had dawned on me that this wasn’t just my little corner of the market, it was everything.

    And then 5 minutes later, everything had returned to “normal”, and I was sporting a profit. In the best of impossible worlds, I could have (in theory) picked up the shares south of 4.25, but I am more than happy with my 6.70 aggregate cost for a stock that closed at 7.23.

    While it would be mildly interesting to know exactly what happened (almost certainly a software spasm, given the speed with which things plummeted and then recovered), I think the lesson to draw from this is that these markets are really quite fragile, and susceptible to stampedes with any given thunderclap (real or imagined).

    I’ll bet a lotta folks with stop-loss orders got taken out and then had the prices jump back above their exit point before they could do anything about it. Almost certainly Barry has a lotta company that is in 100% cash right now. That could make for a brief rally, perhaps taking us into June before the next thunderclap.

    Chaos, it’s a wunnerful thing.

  81. jeffg says:

    The Dow dropped 1,000 points before strorming back to close down 350 on news that Barry Ritholtz was at 100% cash………….

  82. TakBak04 says:

    jeffg Says:
    May 6th, 2010 at 8:03 pm

    The Dow dropped 1,000 points before strorming back to close down 350 on news that Barry Ritholtz was at 100% cash………….

    ——

    BR did a Caveat…..He’s only in CASH in the things that matter to his Blog Readers. I hope he was safe today in the rest of what he owned. It was an ugly, ugly day.

  83. wisedup says:

    NYSE’s Leibowitz blames computers not the large black swan under his desk
    Housing prices can never go down and Spain etc can never default. Hello?

  84. call me ahab says:

    goddammit BR-

    you edited my 4:21 post- Shocker!!!!

    I most definitely did not say XXXX XX-

    WTF? and I meant it in a nice way- LOL

    I mean really- she’s definitely on my list for those kind of services :D

  85. GZR says:

    Barry

    Thanks for your response about your reasoning for going to cash in a previous thread.
    Being 75% short and 25% cash made it a nice day for me. Tomorrow is another day. We shall see.

  86. TakBak04 says:

    BTW…I give Credit to the “Fast Money Folks” on CNBC (the only trash I watch there.) There folks were onboard for having some “time outs” on the “Black Box, Dark Pools, etc. FAST HFT schemes that are out there.

    I can’t stand CNBC…but the “Fast Money Crowd” did a good job tonight…..REGULATE THE HFT…by putting some “stops” on the “unfair advantage to the retail buyer.”

    I realize that without us “Retail Buyers” their “Trading” suffers so their views are really just taking care of their own….but still…I’m OK with honest traders…but as they pointed out…”THEY with their Bloomburg Terminals and other add ons are at an ADVANTAGE to the the average Joe and Jane Retail investor out there.

    I thought it was a fair and honest consensus amongst the “Fast Money Crowd.” So I’ll give a Kudo’s to CNBC for them.

  87. DeDude says:

    Phat Phingers up theirs – this was the invention of the Stop-Loss squeeze ;-)

  88. WolfStreet says:

    @ahab: what about those XXXX XX? hangman time?
    alright then my guess is K..? S..? and huh M ?
    What?? ahab? KxSS Mx xSS ?
    er.. Z..JVWX? no sry don’t know really.

  89. constantnormal says:

    this is gonna upset a number of applecarts … scramble the lawyers

    http://www.reuters.com/article/idUSN0614132620100506

  90. Transor Z says:

    Anyone interested in the Ahab edit, here is a very appropriate video that will be of interest and will shed some light on the XXXX XX combo. ;-)

    http://www.youtube.com/watch?v=DggnpdhPEnA

  91. mitchn says:

    Can you say “banana republic”? Thank you Masters of the Universe, thank you.

  92. Transor Z says:

    @constantnormal:

    What a freaking disgrace. It’s an “orderly markets” thing so they can get away with it.

  93. Mannwich says:

    How long before all trust and confidence in the markets is lost? Anyone?

  94. Mannwich says:

    Meaning the legitimacy of the markets…..

  95. mitchn says:

    FWIW, Nikkei down 3.77% an hour+ into trading.

  96. gregh says:

    Who is winning and who is losing in these proposed 20 minutes worth cancellations on the 60% gaps by the nyse and nas? Swing traders winning, scalpers losing?

  97. WolfStreet says:

    @Manny(I’m here also yeah:p) : maybe question this time is: “after having somewhat regained confidence in the markets after2008/begin09 crash, how would people react in the face of another huge selloff”?

    Now selloff is not here yet. But question still remains.