ANOTHER FLASH, THIS TIME AGAINST NASDAQ, BUT NOT TO WORRY, IT WAS JUST ...

Readers of this website know I'm very suspicious of flash crashes, those sudden market down turns where stocks, or even a few stocks or a single stock, plummet in value in a matter of second due to the sudden action of High Frequency Trading (HFTs) on "dark pools." I have advanced various hypotheses to explain this behavior, from the possibility that artificial intelligence is already here, looming, as it were, in the networks of these trading concerns, to the possibility that someone might be using them to probe market cyber-security and vulnerabilities. Well, so many people saw this one, and sent me this article, that I have to extend my high octane speculations once again. As one individual who shared this article stated in his email, it raises... "questions." Here's the story from our friends at Zero Hedge:

Nasdaq Triggers Market-Wide Circuit-Breaker As AMZN "Crashes" 87% After-Hours

Ponder these statements:

Nasdaq has issued a market-wide trading halt amid what appears to be a "glitch" that sent a number of the largest Nasdaq-listed stocks to crash or spike to exactly $123.47 per share.

This move crashed the value of companies including Amazon and Apple, sparked chaos in Microsoft, while sending Zynga rocketing up more than 3000%.

On the eve of the US Independence Day holiday and in after-hours trading, The FT reports that market data show that companies such as Apple, Amazon, Microsoft, eBay and Zynga were repriced at $123.47.

The Bloomberg data terminal listed either “market wide circuit breaker halt — level 2” or “volatility trading pause” on all the stocks affected.

And then, towards the end of the article, we read this:

In a statement, Nasdaq said the glitch was related to “improper use of test data” sent out to third party data providers, and said it was working to “ensure a prompt resolution of this matter”. In cases of any clearly erroneous data, trades made are cancelled. (All emphases in the original)

Note the implicit assumption: the "safety valve" or "Market wide circuit breaker halt" gets tripped when volatility reaches a certain level. That should trigger the question that some former quants want answered, but it appears not to be "getting through": is volality itself a certain enough epistemological foundation on which to assume that algorithmicly-driven trades are not altogether divorced from human market realities? In other words, does the mere absence of such phenomena on a trading day mean that real human market conditions are being reflected? I would submit that this is not so.

But there's something else here, and it should give everyone considerable pause: these "glitches" appear to be happening with no end in sight, and therefore, how does voiding these trades contribute to the healthiness of our markets, if one has to "lose time" and a potentially whole day of trades to "reset" after a "glitch"? Ultimately, this would seem to be a very inefficient way to conduct trades. However what disturbs me is the constant appeal, on such events, to the ever-present "glitch." We've had several such "glitches" since the famous May 2010 flash crash. One might as well say that these events are due to "gremlins in the system"; such an assertion would possess just as much rational explanatory power as the ever-useful "glitch," and this is a key to the glaring problem once again: our markets are not transparent, and not reflective of genuine human market conditions. I begin to think that, perhaps, "gremlins in the system" might even be a more useful explanation, for that at least would seem to imply that perhaps some of these trading networks have "woken up."

Whether or not that high octane speculation be true, there are a couple of other problems here that greatly puzzle and disturb me. Who got to decide, after the "reset", that various stocks were repriced at $123.47 per share? On what basis was this decision taken, or did it, too, fall within some agreed-upon artificial protocol adopted  in the case of "how to reset market prices in the event of a flash crash?"  Who (or what) took this decision? What was the explanation?

Finally, this new "glitch" was, according to Nasdaq, related to "improper use of test data sent out to third party data providers."

Oh really!

Ok... what was the test data? and WHO were the third parties? Was their "improper use" of that data intentional or not? It's the general lack of any useful information here that once again states, as clearly as possible, that the market is not transparent, and that it ill-reflects any human market realities or analysis of the value of the shares affected. Did that "improper use" of "test data" constitute an attempt to deliberately probe Nasdaq's potential cyber vulnerabilities? And if one can "improperly use test data" to create a "glitch" that leads to suspension of trading, why not use it to erase all records of trades altogether?   Of course, I can hear it now: "Oh we have backup systems and there's no danger of that," and etc &c usw. and k.t.l.  All of this is a nice euphemistic way of saying that the markets have little to no integrity.

I don't know about you, but every intuitive bone I have says there's much more to this story, and to the whole phenomenon of flash crashes, than meets the eye, and that "they" don't want to talk about it, either because they know what's really going on, or - worse - don't really know what's going on.  Why do I get the  queasy feeling that this is all related to the Inslaw scandal and the theft of its PROMIS software?

See you on the flip side...

19 thoughts on “ ANOTHER FLASH, THIS TIME AGAINST NASDAQ, BUT NOT TO WORRY, IT WAS JUST ...”

  1. Robert Barricklow

    Perhaps this is working as designed and the flash crashes are purpose[some of the time].
    If so, then a surprise crash would definitely get their attention. Either in the form of AI, a foe, or and enemy within.
    No doubt new software & hardware is tested to some degree. And in all exercises; a few will go live.
    Yet, the degree of moving parts, and the fact that many of these unseen players are simply NOT human does tend toward some crossing their fingers when keys are hit for the program to unfold..

    1. Robert Barricklow

      TPTB believe they control the markets.
      You would expect that from an authoritarian regime.

  2. With all this going on, why would anybody in their right mind invest in the stock market ???????

    1. Because they know how to make quick profits on failing businesses and unpaid debts..

  3. Peter Sazonoff

    This is a general comment from someone who has been following your website, and reading some of your books, and listening to your various YouTube interviews for the past couple of years. Many thanks for your Herculean efforts. My comment: in view of the ‘world view’ that is being unfolded in your work, what spiritual conclusions have you reached? What is humanity’s place in this cosmic panorama? What is the goal of an individual’s striving in the face of his undeniable/unavoidable mortality? Again thanks for your consideration, and please excuse my using the chat room for an off-topic foray.

    1. Hi Peter – no worries – we all go through the same phases when arriving here.. Dont worry Dr F holds member vidchats where he answers exactly these kind of questions where the topic of the day is .. Id recommend you joining in. I think there is one coming up tomorrow…. but Dr F is writing a book atm.. so I dont know if its confirmed yet..
      Dont forget to go the community and ask those kind of questions as well. Peace and love.

  4. Oh, PROMIS me a story to tell,
    Of Amazon stocks and others to sell,
    As high trade capacities approach the gravity well,
    Where greedy fascists wait for their coffers to swell.

    Test data, aye. What a novel way to employ the word test. This reminds me of President Bush’s suggestion that the nation is under a “test” during the opening stages of America’s famous 2001 geopolitical and financial event.

  5. Volatility’s the name of the game and it appears the larger markets ard behaving like the Alternative Investment Markets where this type of event happens quite frequently, tripping stop losses and providing the market makers with more stock to profit from. Perhaps theyre doing a similar thing with blue chips to shake out the smaller investors and take everything private.

  6. Has anyone thought of reporting this to a gambler anonymous health clinic. Or have our overlords finally gone off the deep end has the last vestige of any sense left their minds.

  7. From Jim Stones website:
    “Late last year I had a Microsoft programmer contact me stating that Microsoft will give any zionist company willing to pay the price the keys to any non Jewish company’s networks so they could go in and steal all the secrets, research and development, and financial info from a non Jewish competitor or any individual so they could then be destroyed in the market place. This same programmer said that McCaffee and Norton would do the same, and that both worked closely with Microsoft to make sure there were no system incompatibilities that would prevent them from being able to provide their own back doors into anyone’s system for a price. It’s no wonder why Jewish companies now dominate everything when they can steal and rape in secret, totally unabated.”

    You only need to research who writes the code for these programs, to realize the potential for misuse/covert control. These back doors are not just in the software, they are also hardwired into the hardware. The Chinese and Russians are finding this out the hard way and are currently taking steps to eliminate it.

  8. Let me be the first to make the following kabbalistic prediction based on 123.47: 1+2+3 = 6, 4+7 = 11. So the “financial reset” will take place on 6/11, i.e. June 11th if read in US date format or November 6th if read in international date format.

    1. so the full serie should be.. 1,2,3,4,7,8,15,16,31,32,63,64, 127,128, 255,
      thats pretty close to hexadecimal.. 1,2,4,8,16,32,64,128,256…
      Fibonacci.. … 0, 1, 1, 2, 3, 5, 8, 13, 21, 34, 55, 89, 144, 233, 377

      Kabbalistic?? I thought we needed words for that 😡

      1. 1,2,3,4,7 are the first five Lucas numbers 2,1,3,4,7 rearranged in ascending order. The Lucas numbers are related to the Fibonacci numbers.

    2. Interesting interpretation, Dana. If we assume the international 6 Nov 2017 date, can any link be made with The Economist’s arcane cover art prediction for 2017?

  9. The single most important truth is that the people responsible for guaranteeing the continuing-profitability of a concern will lie through their teeth as necessary. All reporting of ’causes’ should be seen through that lens.

    The other truth is that the further things go from the physical into the abstract, the more unstable and ‘volatile’ they become. If I am giving you five sheep for one horse, it is hard to cheat each other. If I am engaging in some arcane financial futures derivatives swap or worse, gaming the system becomes progressively easier (for insiders). At some point, people begin walking away from an untrusted system, and restart at a more-trusted level.

    Actually, I believe the latest flash crash was a readjustment of the spacetime continuum caused by a timeline merger resulting from the light of Venus reflecting off swamp gas and adjusting quantum probabilities…

    1. Phil the Thrill

      *gasp* I could read basta’s comment, and I didn’t even have to put on my Rowdy Roddy Wayfarers!

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