This post is a follow up to my previous post, “Is The End Near? You Can Smell The Fire Smoldering “
Chart is of P&G with all trades…even cancelled
There you have it ladies…….We saw a little “puke” in equities. The smoldering pine needles have combusted resulting in HFT trading wreaking havoc across the equity markets, nothing stood a chance.
Just about every name across the board was annihilated at about 2:45 as the market started the precipitous HFT exacerbated fall. Though some trades may be cancelled on the NASDAQ, the majority of the trades will stand, why would they not? It aggravates me when damage control measures are taken when clearly the markets were sold off as a results of what was happening across many different major index leaders.
The smoke led to fire today. The fire started smoldering a week ago…The tip of the iceberg is the market puked like a son of a bitch, the biggest/fastest drop ever, no one saw it coming. I could feel something happening as huge amounts of puts were bought on S&P500 components around 2:30 est….which was reflected in the VIX, as it shot up almost 100% during the height of the sell off. The markets are clearly scared, traders did not know what was going on, they did they right thing buying puts because it payed if you bought them and sold them at the right time.
This afternoons trading presented very quick trading opportunities, you get in and get out.”When you are able to pull 2 points out of the SPY in less then 20 seconds, you know shit has hit the fan.” was my motto today. Or in simpler terms: “Scenario recognition’. I could not believe the veracity of selling. When the SPY widens out to 25c you know players are scared and are saying FU i am not hitting your bid and those offering said FU i am not buding.. ..When this happens liquidity dies, you gotta get in and make your own market no matter what the cost, you gotta get your price.
Do you think today was out of the blue? I do not, the signals were all in place, Greece going insane with Molotov cocktails and a week of continual selling, massive price spikes in the SPY on minuscule volume AND GS civil and potential Crimal charges… The puzzle pieces are in place, the power is in your hands, when we sell back off the bid, do not be a hero.