Thursday, October 9, 2014

UPDATED: 10/11/2014 -> ZEROHEDGE: Did Today's "Satan Signal" In S&P Futures Give The 'All-Clear' For Selling To Begin?

Updated: 10/11/2014

There appears to be a message within a message in the mystery orders that ZEROHEDGE reported in the futures markets.  Since my readers are clever and astute, I always get interesting insights from them and I thought I'd share this one...  Someone was digging deep on this message to the markets...

A reader wrote the following:

I just took a look at that chart and multiplying 666 by 26 arrived at the number 17316.  After googling that number I came to a website half way down the page of search results......Numbers Aplenty: facts and properties. should take you there. Quite interesting.

Hypnotoad from Futurama

Did Today's "Satan Signal" In S&P Futures Give The 'All-Clear' For Selling To Begin?

Submitted by Tyler Durden on 10/09/2014 19:07 -0400

Even Bob Pisani knows by now that the European Close seems to create a trend-reversal moment intraday that few machines (and even fewer humans) are willing to fight. Whether this is remnants of short-term cycles found due to POMO or just a drop in liquidity is unclear; but what is clear, it happens, and all too regularly... except today. After a notably weak start to the day, the machines were just getting revved up for the 1130ET reversal to kick in and lift the market back to VWAP when a curious thing happened... "someone" canceled-and-replaced orders for 666 contracts 26 times in the 1130ET to 1200ET period... and selling accelerated lower, no reversal, to close at the lows on heavy volume.

Thanks to the incredibly detailed work of Nanex's Eric Hunsader, we can see the 'secret' signal that only the HFTs would have been capable of seeing...

Eric Scott Hunsader @nanexllc Follow In the last 20 minutes, someone has placed/canceled a 666 contract order in eMini 26 times $ES_F 5:33 PM - 9 Oct 2014 76 RETWEETS  24 FAVORITES

For a sense of how out of place this was, here is the quote size histogram for that period:

We are sure this is nothing... just pure coincidence that on the 4th most active trading day in history and on following a huge surge day in stocks not trusted by any other asset class, someone would send 26 separate times in a few minutes orders for 666 contracts.

Only a tin-foil-hat-wearing digital dickweed would see anything odd about that: for everyone else this is merely yet another market anomaly that is best left unmentioned.

*  *  *

Oh, one more thing, this all happened just after VIX 'fat-fingered' spike down and VXX volume surged, launching today's selloff.

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