Tag Archives: Dow Jones

US Stock Markets Infected By Malicious Software?

The once great American Stock Market are behaving more and more like an old Compaq Presario, still operating on a windows 98 platform and heavily infected by malicious software. It keeps flashing and crashing, and seems to become more and more unstable every day. The new single stock circuit breakers are almost meaningless, as they only reboot the system – over and over again.

“The CBOE Stock Exchange is looking into the issue.”

CBOE spokeswoman


The trade, which appears to have taken place on a stock platform owned by CBOE Holdings Inc . (CBOE), set off a single-stock “circuit breaker” as exchanges this week expand the trading halts to all stocks in the Russell 1000 index, alongside some exchange-traded funds, Dow Jones news wire reports.

Strangely, very few other news media does…

Im spite the fact that it’s only been a week since the last flash crash occurred in the US stock markets.

And the fact that nobody have managed to figure out what really happened on May 6th when we had the first big one that later triggered a cascade of investigations and the recent implementation of single stock circuit breakers.

Today‘s hiccup appears to have originated at the Chicago Board Options Exchange:

“The trade, which appears to have taken place on a stock platform owned by CBOE Holdings Inc . (CBOE), set off a single-stock “circuit breaker” as exchanges this week expand the trading halts to all stocks in the Russell 1000 index, alongside some exchange-traded funds,” Dow Jones news wire writes.

“A spokeswoman for CBOE said Tuesday that the trades that triggered the circuit breaker were canceled. The CBOE Stock Exchange, the market where the trade took place, was looking into the issue, she said.”

Big Boys With Big Toys?

However, amongst the common traders, there’s little doubt about what’s going on.

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Tyler Durden at Zero Hedge comments:

“It has been about a week since we have had a flash crash in our broken markets, and we were getting a little antsy. Then Nucor showed up and traded at $0.01. At 11:52:21 something broke, and as the QR chart below shows, it was basically precisely the same algo malfunction that either goes and hits all bids all the way to zero, or some HFT decided to shut down, and wipe out the entire bid-side order book. The stock which had been trading at $39.58 literally milliseconds earlier, saw a SkyNet T-1 unit go berserk and take out the bids at $37.22, and $35.77 in sequential fashion, with the next trade being at at the residual stub quote of $0.01. Of course, circuit breakers were triggered, but not before even more irreversible damage to investor confidence was suffered. And those idiots ‘upstairs’ still wonder why tomorrow we will report another massive outflow from mutual funds.”

And here’s some charts to visualize:

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Zero Hedge: “There is a pattern emerging: every week we are seeing a flash crash in more and more prominent stocks. These are getting more and more frequent. And instead of fixing the underlying cause, the SEC continues to fret with reactive damage control, and DKing trades of those who are brave enough to step in and take advantage of broken algos. How long will this kind of bullshit travesty continue?”

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By the way, this is what the heavyweights in the financial news business reports:

Bloomberg: U.S. Stocks Drop as Financial Shares Slump, Technology Rallies

CNN: Stocks end mixed after choppy day

CNBC: Stocks Fail To Hold Gains; Technology Rises

The Wall Street Journal: Gold at New Peak; Dow Slips

?

Related by the Econotwist:

SEC Expand Single Stock Circuit Breakers for Russell 1000 Index And Others

May 6. 2010: “The Black Thursday”

Testimony Of A High Frequency Trader

Thursday May 6. – Busiest Day Ever On CBOE

Wall Street Collapse: Did Somebody See It Coming?

David Rosenberg: “The Weirdest 20 Minutes Of My Life”

U.S. Stock Crash Compels Further Investigation of Wall Street Scam

The Rise Of The New Market Makers

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Filed under International Econnomic Politics, National Economic Politics

US Stock Markets Infected By Malicious Software?

The once great American Stock Market are behaving more and more like an old Compaq Presario, still operating on a windows 98 platform and heavily infected by malicious software. It keeps flashing and crashing, and seems to become more and more unstable every day. The new single stock circuit breakers are almost meaningless, as they only reboot the system – over and over again.

“The CBOE Stock Exchange is looking into the issue.”

CBOE spokeswoman


The trade, which appears to have taken place on a stock platform owned by CBOE Holdings Inc . (CBOE), set off a single-stock “circuit breaker” as exchanges this week expand the trading halts to all stocks in the Russell 1000 index, alongside some exchange-traded funds, Dow Jones news wire reports.

Strangely, very few other news media does…

Im spite the fact that it’s only been a week since the last flash crash occurred in the US stock markets.

And the fact that nobody have managed to figure out what really happened on May 6th when we had the first big one that later triggered a cascade of investigations and the recent implementation of single stock circuit breakers.

Today‘s hiccup appears to have originated at the Chicago Board Options Exchange:

“The trade, which appears to have taken place on a stock platform owned by CBOE Holdings Inc . (CBOE), set off a single-stock “circuit breaker” as exchanges this week expand the trading halts to all stocks in the Russell 1000 index, alongside some exchange-traded funds,” Dow Jones news wire writes.

“A spokeswoman for CBOE said Tuesday that the trades that triggered the circuit breaker were canceled. The CBOE Stock Exchange, the market where the trade took place, was looking into the issue, she said.”

Big Boys With Big Toys?

However, amongst the common traders, there’s little doubt about what’s going on.

Tyler Durden at Zero Hedge comments:

“It has been about a week since we have had a flash crash in our broken markets, and we were getting a little antsy. Then Nucor showed up and traded at $0.01. At 11:52:21 something broke, and as the QR chart below shows, it was basically precisely the same algo malfunction that either goes and hits all bids all the way to zero, or some HFT decided to shut down, and wipe out the entire bid-side order book. The stock which had been trading at $39.58 literally milliseconds earlier, saw a SkyNet T-1 unit go berserk and take out the bids at $37.22, and $35.77 in sequential fashion, with the next trade being at at the residual stub quote of $0.01. Of course, circuit breakers were triggered, but not before even more irreversible damage to investor confidence was suffered. And those idiots ‘upstairs’ still wonder why tomorrow we will report another massive outflow from mutual funds.”

And here’s some charts to visualize:

Zero Hedge: “There is a pattern emerging: every week we are seeing a flash crash in more and more prominent stocks. These are getting more and more frequent. And instead of fixing the underlying cause, the SEC continues to fret with reactive damage control, and DKing trades of those who are brave enough to step in and take advantage of broken algos. How long will this kind of bullshit travesty continue?”


By the way, this is what the heavyweights in the financial news business reports:

Bloomberg: U.S. Stocks Drop as Financial Shares Slump, Technology Rallies

CNN: Stocks end mixed after choppy day

CNBC: Stocks Fail To Hold Gains; Technology Rises

The Wall Street Journal: Gold at New Peak; Dow Slips

?

Related by the Swapper:

SEC Expand Single Stock Circuit Breakers for Russell 1000 Index And Others

May 6. 2010: “The Black Thursday”

Testimony Of A High Frequency Trader

Thursday May 6. – Busiest Day Ever On CBOE

Wall Street Collapse: Did Somebody See It Coming?

David Rosenberg: “The Weirdest 20 Minutes Of My Life”

U.S. Stock Crash Compels Further Investigation of Wall Street Scam

The Rise Of The New Market Makers

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Fighting The Stimulus Addiction

The U.S. economy will be needing artificial economic stimulus in years to come. That’s what most analysts thinks after this weeks economic data. And there’s more stimulus under way, the govenrnment signals. On Wall Street the Dow Jones Index jumps 200 points.

 

“Crisis bailouts are a new way for big business to get richer”

Les Leopold

(Article in Norwegian)

economic-stimulus-logo.jpg

 

Amerikanske økonomi er avhengig av kunstig økonomisk stimulans i flere år fremover. Det er konklusjonen blant de fleste analytikere etter ukens økonomiske begivenheter. Og mer stimulus kommer, signaliserer myndighetene. Dow Jones-indeksen spretter opp 200 poeng.

Gårsdagens uttalese fra Federal Reserve om at den amerikanske styringsrenten vil være “eksepsjonelt” lav i lang tid fremover, var et nytt skudd i armen på den stimuleringsavhengige økonomien i landet.

At president Obama lover å videreføre ordningen med sudsidiering av førstegangs boligkjøpere, er også med på å løfte aksjemarkedet torsdag.

Den ukentlige oversikten over nye arbeidssøkende var også litt bedre enn forventet, men spenningen knytter seg nå til den månedlige rapporten som legges frem fredag-

I følge estimater som nyhetsbyrået Bloomberg har innhenter forsvant ytterligere 175 000 jobber i oktober og ledigheten økte med 0,1 prosentpoeng til 9,9 prosent.

Forrige måned bommet økonomene med en feilmargin på over 50 prosent. Derfor er det ekstra nervøst i markedet foran fredagens rapport fra arbeidsdepartementet.

“The U.S. unemployment will remain quite bad for a long time.”

Det sier sjeføkonom Allen Sinai hos  Decision Economics Inc i samtale med reporter Lori Rothman i Bloomberg Television.

Nytt rally i emning?

Det er ting som tyder på at vi står foran et nytt aksjerally.

Dollarkursen forventes å svekkes videre, noe som i stor grad driver aksjemarkedet for tiden.

I tillegg har flere tekniske indikatorer snudd snudd den kortsiktige trenden.

Her er Dow Jones indeksen:

 dow5.gif

Relative Strength Index:

rsi_fra6okt.gif

RSI ser ut til å han snudd opp etter å ha ligget i en nedadgående trend i hele oktober.

Momentum Indicator:

mon_fra6okt.gif

 Momentum i Dow Jones indeksen har også vært stigende siden begynnelsen av uken.
Bull vs Bear Force:

bullbear_3mnd.gif

 Disse indikatorne gir også et tidlig signal om at markedet kan være på vei opp igjen.

 

Flat dollar

Dollarkursen er omtrent uendret i forhold til de fleste valutaer fredag.
Dermed er det en forsiktig oppgang i råvareprisene – gullprisen holder seg rundt 1090 dollar per unse.

Torsdag gikk gullprisen til ny historisk toppnotering på 1098 dollar per unse.
Om økonomien er i så dårlig forfatning at folk bør veksle sparepengene sine om til fysisk gull, får man selv vurdere.
President og sjefstrateg Peter Schiff hos Pacific Capital mener det er en god ide å kjøpe gull nå.
Det sier han i dette intervjuet med Fox Business News fra i går.

 

Drukner i gjeld

Spillerne på Casino Wall Street er begynt å tjene gode penger igjen, og Obamas folk er klippefast i troen på at tingene er i ferd med å bedre seg.
Men blant vanlige amerikanere føles det som om økonomien bare blir verre og verre, og forskjellen mellom rike og fattige blir større og større.
Slik er det også, sier forfatteren Les Leopold, som har skrevet boken “The Looting of America“. Slik er det alltid i økonomiske krisetider, hevder han.
Leopold tror Obama vil få store problemer med å gjennomføre den reformen i finansmarkedet som han planlegger, sier den amerikanske forfatteren i dette intervjuet med RussiaToday.

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