Sceeto Stock Trading Indicators: Dec 21, 2012

Friday, December 21, 2012

Flash Crash

If you trade the S&P 500 Emini Futures, or trade the Nasdaq, Dow Jones, Rusell mini futures, or if you trade Forex and Crude Oil you need to check out www.sceeto.com for one of the worlds most advanced indicators. A no obligation Free Trial is availible.www.sceeto.com

Flash Crash 20th December 2012As Seen By ...sceeto's Order Flow Algorithms http://www.sceeto.com . High Frequency Traders re positioning the market by almost 50 points on purpose or whoops !!! did someone push the wrong button ? From 8pm until 8.20 the market crashed over 46 points and 50 points from yesterdays close.
It was caught live by sceeto as it happened. Carl Weiss a high frequency trading expert who writes algorithms that track the hfts says that the markets have changed forever and this crazy type of thing will continue to happen. traders now need real time order flow indicators to monitor the hfts in real time and stop relying on lagging stoneage indicators. Any one using sceeto tonight would have seen the market break down live and have known not to be long thats for sure.The gains from the recent days of the Sanat Claus rally were wiped very quickly it will be now interesting to see what the high frequency traders do next .
To monitor the hifts in real time yourself and be alerted when they are buying or selling please check out http://sceeto.com/user/register/ and protect yourself.
Any media enquires are welcome to Carl Weiss at http://sceeto.com who would be happy to answer any of your questions. .Markets also dropped very quickly overnight due to either human error or possible high frequency trading algorithms thankfully now high frequency trading can be tracked by anyone in real time so perhaps you can avoid getting caught on the wrong side of a move like this and at the very least be able to get yourself out quickly without incurring too many losses if you would like to monitor High Frequency trading yourself in real time get whats probably the worlds fastest set of trading indicators at http://www.sceeto.com we even have a great free trial your trading will be changed for the better and it will help you stay more on the winning side of trades
For all media enquires please contact Carl at the Sceeto website or at www.algofutures.com

Definition of A FlashCrash Courtesy Of Wikipedia Creative Commons Licence
As of July, 2011, only one theory on the causes of the flash crash has yet been published by a Journal Citation Reports indexed, peer-reviewed scientific journal.[40] One hour before its collapse, the stock market registered the highest reading of "order flow toxicity" in recent history.[40] The authors of this paper apply widely accepted Market microstructure models to understand the behavior of prices in the minutes and hours prior to the crash. According to this paper, "order flow toxicity" can be measured as the probability that informed traders (e.g., hedge funds) adversely select uninformed traders (e.g., Market makers). For that purpose, they develop the VPIN Flow Toxicity metric, which delivers a real-time estimate of the conditions under which liquidity is being provided. If the order flow becomes too toxic, market makers are forced out of the market. As they withdraw, liquidity disappears, which increases even more the concentration of toxic flow in the overall volume, which triggers a Feedback mechanism that forces even more market makers out. This cascading effect has caused hundreds of liquidity-induced crashes in past, the flash crash being one (major) example of it. One hour before the flash crash, order flow toxicity was the highest in recent history.
Note that the source of increasing "order flow toxicity" on May 6, 2010 is not determined in this paper or captured in the VPIN metric. Whether a dominant source of toxic order flow on May 6, 2010 was from firms representing public investors or whether a dominant source was intermediary or other proprietary traders could have a significant effect on regulatory proposals put forward to prevent another Flash Crash.

Russell TF Futures Mini Flash Crash Report 20th Dec 2012

Russell TF Futures Mini Flash Crash Report 20th Dec 2012.Russell Mini Flash Crash
20th December 2012.Although not as affected like some of the other markets the Russell Tf Futures also dropped very quickly overnight due to either human error or possible high frequency trading algorithms thankfully now high frequency trading can be tracked by anyone in real time so perhaps you can avoid getting caught on the wrong side of a move like this and at the very least be able to get yourself out quickly without incurring too many losses if you would like to monitor High Frequency trading yourself in real time get whats probably the worlds fastest set of trading indicators at http://www.sceeto.com we even have a great free trial your trading will be changed for the better and it will help you stay more on the winning side of trades
For all media enquires please contact Carl at the Sceeto website or at www.algofutures.com

Definition of A FlashCrash Courtesy Of Wikepedia Creative Commons Licence
As of July, 2011, only one theory on the causes of the flash crash has yet been published by a Journal Citation Reports indexed, peer-reviewed scientific journal.[40] One hour before its collapse, the stock market registered the highest reading of "order flow toxicity" in recent history.[40] The authors of this paper apply widely accepted Market microstructure models to understand the behavior of prices in the minutes and hours prior to the crash. According to this paper, "order flow toxicity" can be measured as the probability that informed traders (e.g., hedge funds) adversely select uninformed traders (e.g., Market makers). For that purpose, they develop the VPIN Flow Toxicity metric, which delivers a real-time estimate of the conditions under which liquidity is being provided. If the order flow becomes too toxic, market makers are forced out of the market. As they withdraw, liquidity disappears, which increases even more the concentration of toxic flow in the overall volume, which triggers a Feedback mechanism that forces even more market makers out. This cascading effect has caused hundreds of liquidity-induced crashes in past, the flash crash being one (major) example of it. One hour before the flash crash, order flow toxicity was the highest in recent history.
Note that the source of increasing "order flow toxicity" on May 6, 2010 is not determined in this paper or captured in the VPIN metric. Whether a dominant source of toxic order flow on May 6, 2010 was from firms representing public investors or whether a dominant source was intermediary or other proprietary traders could have a significant effect on regulatory proposals put forward to prevent another Flash Crash.

Breaking News Nasdaq Flash Crash 20th Dec 2012 Globex

Breaking News Nasdaq Flash Crash 20th Dec 2012 Globex.Breaking news Nasdaq mini Flash Crash 20th December 2012 During Globex Overnight Session High Frequency Trading May Be Running Amok again or are they trying to kill off the santa claus rally
watch this video showing the sudden drop in the Nasdaq overnight over 55 points thats a huge move and it happened in a little over an hour unheard of in a market whose average
move is aprox 12 points daily ,what or whos to blame,well obviously hfts would be suspect number one or some trader that just pushed the wrong button either way it affected the Euro USD as well as Gold and Crude as well as the Dow Jones,The Russell Tf and The Emini which all dropped quite a distance in a very short space of time the markets have changed and this thing will happen more and more you should consider getting
real time indicators to alert you indicators like sceeto get a free trial at www.sceeto.com you pay for real time data feeds why not get real time indicators ?
you won't be sorry.
For all media enquires please contact Carl at the Sceeto website or at www.algofutures.com

Definition of A Flash Crash Courtesy Of Wikepedia Creative Commons Licence
From the SEC/CFTC report itself:
The combined selling pressure from the sell algorithm, HFTs, and other traders drove the price of the E-Mini S&P 500 down approximately 3% in just four minutes from the beginning of 2:41 pm through the end of 2:44 pm. During this same time cross-market arbitrageurs who did buy the E-Mini S&P 500, simultaneously sold equivalent amounts in the equities markets, driving the price of SPY (an exchange-traded fund which represents the S&P 500 index) also down approximately 3%.
Still lacking sufficient demand from fundamental buyers or cross-market arbitrageurs, HFTs began to quickly buy and then resell contracts to each other -- generating a "hot-potato" volume effect as the same positions were rapidly passed back and forth. Between 2:45:13 and 2:45:27, HFTs traded over 27,000 contracts, which accounted for about 49 percent of the total trading volume, while buying only about 200 additional contracts net.[8]
As prices in the futures market fell, there was a spillover into the equities markets. The computer systems used by most high-frequency trading firms to keep track of market activity decided to pause trading, and those firms then scaled back their trading or withdrew from the markets altogether.[9][10][11][12]
The New York Times then noted, "Automatic computerized traders on the stock market shut down as they detected the sharp rise in buying and selling."[11] As computerized high-frequency traders exited the stock market, the resulting lack of liquidity "...caused shares of some prominent companies like Procter & Gamble and Accenture to trade down as low as a penny or as high as $100,000."[11] These extreme prices also resulted from "market internalizers,"[17][18][19] firms that usually trade with customer orders from their own inventory instead of sending those orders to exchanges, "routing 'most, if not all,' retail orders to the public markets -- a flood of unusual selling pressure that sucked up more dwindling liquidity."[12]
While some firms exited the market, firms that remained in the market exacerbated price declines because they "'escalated their aggressive selling' during the downdraft."[9] High-frequency firms during the crisis, like other firms, were net sellers, contributing to the crash.[9][10][11][12]
The joint report said prices stopped falling when, "At 2:45:28 pm, trading on the E-Mini was paused for five seconds when the Chicago Mercantile Exchange ('CME') Stop Logic Functionality was triggered in order to prevent a cascade of further price declines. In that short period of time, sell-side pressure in the E-Mini was partly alleviated and buy-side interest increased. When trading resumed at 2:45:33 pm, prices stabilized and shortly thereafter, the E-Mini began to recover, followed by the SPY."[8] Or as The New York Times reported, "The rout continued until an automatic stabilizer on the futures exchange cut in and paused trading for five seconds, after which the markets recovered."[11]
The joint report noted that after a short while, as market participants had "time to react and verify the integrity of their data and systems, buy-side and sell-side interest returned and an orderly price discovery process began to function," and that by 3:00 pm (EDT), most stocks "had reverted back to trading at prices reflecting true consensus values" and the Flash Crash was over

FlashCrashDow Jones 300 point Drop 20th Dec 2012

FlashCrash Dow Jones 300 point Drop 20th Dec 2012.This Is A Newsflash The Dow Jones Ym Futures Dropped Almost 300 points in a short time in the globex overnight session due to either a mini flash crash or pure market manipulation on the close they were sitting on 13265 with very little warning the Dow Started to drop and plunged to 12964 before starting to rise up again. http://www.sceeto.com
Carl Weiss a high frequency trading expert who writes algorithms that track the hfts in real time stated that the markets are forever changed and that this will happen more often . His software sceeto alerts people in real time when the trading bots are buying or selling and at least as seen in the video warn the trader that the market is going nowhere but down,old fashioned indicators just can not compete in todays trading environment according to Carl You need to know whats going on the second it is happening and of course be sensible and always have stop losses anyway to learn more about sceeto please go to http://www.sceeto.com if you don't want to get caught out
in future please also sign up for our free trial .
For all media enquires please contact Carl at the Sceeto website or at www.algofutures.com

Definition of A Flash Crash Courtesy Of Wikepedia Creative Commons Licence
The May 6, 2010 Flash Crash[1] also known as The Crash of 2:45, the 2010 Flash Crash or just simply, the Flash Crash, was a United States stock market crash on Thursday May 6, 2010 in which the Dow Jones Industrial Average plunged about 1000 points (about 9%) only to recover those losses within minutes. It was the second largest point swing, 1,010.14 points, and the biggest one-day point decline, 998.5 points, on an intraday basis in Dow Jones Industrial Average history
After almost five months of investigations led by Gregg E. Berman,[6][7] the U.S. Securities and Exchange Commission (SEC) and the Commodity Futures Trading Commission (CFTC) issued a joint report dated September 30, 2010 and titled "Findings Regarding the Market Events of May 6, 2010" identifying the sequence of events leading to the Flash Crash.[8]
The joint report "portrayed a market so fragmented and fragile that a single large trade could send stocks into a sudden spiral,"[9] and detailed how a large mutual fund firm selling an unusually large number of E-Mini S&P 500 contracts first exhausted available buyers, and then how high-frequency traders (HFT) started aggressively selling, accelerating the effect of the mutual fund's selling and contributing to the sharp price declines that day