Interesting Reads at Zero Hedge Today (5/6/2010), SPY Lost 9% at One Point

Interesting reading at Zero Hedge today giving the scoop. I'm going to write about $USO/$OVX, $USO puts gone wild, ETF ratios and currencies tonight. EUR/USD fell off a cliff today and is testing support in the descending channel as well as the 1.24 floor. Also at one point today $SPY, the S&P ETF, lost 9% (fat finger?, hedge fund liquidation? or.... weakness ahead for the economy).

$SPY Intraday 5/6/2010 (FreeStockCharts.com)

John Taylor (currency hedge fund FX Concepts) says the Euro is finished - Zero Hedge

Futures Take Out 1,150, Carry Crumbles, Gold On Verge Of $1,200 - Zero Hedge

European Corporate CDS Blowing Out Wider, Xover At 505, HiVol At 152 bps, Public Funding Crisis Becoming Private Again - Zero Hedge

Goldman Out In Full EURUSD Destruction Mode - Zero Hedge

Moody's Sees Contagion Risk For European Banking System - Zero Hedge

Albert Edwards: Don't Buy This Dip - Zero Hedge

Bill Gross' Latest Investment Outlook - Lovin Spoonfull - Zero Hedge

Comments

  1. I just put up the chart of PG http://www.distressedvolatility.com/2010/05/pg-loses-30-but-closes-down-2-chart.html. Insane. I wasn't watching PG, you don't think I could've scooped up PG below the March 2009 low?

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  2. From @reuters

    FLASH: Trades showing rise or fall of more than 60 pct from last print at 2:40 p.m. ET will be canceled by Nasdaq, NYSE Arca 24 minutes ago via web

    FLASH: Nasdaq and NYSE Arca to cancel some trades executed between 2:40 p.m. to 3:00 p.m. 26 minutes ago via web

    Nasdaq to cancel trades http://link.reuters.com/caj92k

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  3. It's funny I was just about to respond to your first comment and say that they'll probably try to write this whole thing off as a bad tick. Psh. It wasn't a bad tick the previous 4 billion times when HFT bots were arbing order flow, nooooo.

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  4. I'd like to add that there was no way to trade this thing. I mean, there was a way, there's always a way, I kind of did it by selling my GLD call near the close/high and being long dollars or yen against any other currency would have been a liquid ticket. I have a newfound appreciation for the FX markets. There was no way to trade this thing in equities or equity options, any limit orders would have not been filled and any market orders would have gotten a shitty fill. This was most probably HFT blowing up and then the PPT stepping in to forestall a drop to 900.

    I'm thinking Interactive Brokers might be a good option later, use their ECN to trade spot currency and trade options for hedging or gamma exposure from the same account. My OANDA dark pool was ticking briskly all day when Tradeking and every other online broker wasn't taking calls or serving web pages. Lessons in liquidity risk.

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