Market Breaks As Stocks Explode Higher On Algo-Triggering Headline

CBOE: AS OF 13:07ET OPRA NOT DISSEMINATION QUOTES,LAST SALES

 

This was right as the Nikkei headlines hit and e-mini volume exploded.

And here is the NYSE confirming that stocks are now soaring higher on “critical Issue”, aka broken market:

Confused what this means: simply said, virtually all quotes, and certainly options, are stale and unreliable, even as dark pools, internalizers and other ATS are filing orders based on 1 hour old data.

In short: a total mess.


Visualizing some of the berserk trades during the outage courtesy of Nanex:

 

What a total farce!




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So Many Problems at the Baltimore Police Department

Anthony BattsThe Baltimore city council
held a hearing
with the police commissioner, Anthony Batts, and
several other high-ranking officials. Council members probed how
police officers actually made stops and police brass insisted they
expected constitutional policing. The police commanders also said
they wanted more cops to handcuff people while stopping them, for
safety. Asked about the same people being stopped multiple times by
cops, one deputy commissioner called it a “delicate situation,”
saying he and the other commissioners didn’t want cops “to
terrorize the citizens.”

The meeting came after a Baltimore Sun investigation
into the number of lawsuits against police claiming excessive
force. Residents also complained about a 30 day rule cops use to
keep the property of people they put in jail. Property taken by
cops has to be claimed within 30 days or it’s forfeited, even if
the property owner is being kept in jail or otherwise away from hi
things for longer than that. Duane Davis, who was arrested for
putting a toilet in front of the local courthouse and regularly
films cops, said he’s had his cameras taken away that way.

One council member, Warren Branch, relayed in one instance
seeing cops enter a man’s home and search his refrigerator after
detained him, and in another a cop poking a handcuffed man later
released. The police brass there said they’d never heard of it. At
the time, Branch said he reported both incidents to commanders,
including one lieutenant colonel, Dan Lioi, was promoted with two
other commanders in 2013 to get the murder rate down, but, as the

Baltimore City Paper reports
:

Since then, two of the three have left the department and have
been charged with crimes. Lioi currently faces assault charges in
Harford County related to a dispute with his wife. When Harford
County deputies seized five guns from Lioi’s residence, they found
that one had previously been held by Baltimore City police as
evidence. There has been no public explanation of how the gun got
to Lioi’s house or how the Baltimore Police evidence control
section lost it. The incident is allegedly under
investigation. 

Last week [Clifton] McWhite was charged with theft because he
allegedly claimed academic credentials he had not earned, which got
him a pay bump. He had resigned abruptly in April after 19 years on
the job. His lawyer told the Sun that he is a victim, as he did not
realize his credentials came from a diploma mill.

The Department of Justice says it will investigate the alleged
pattern of excessive force used by the Baltimore Police Department,
but residents hope other issues are addressed to. Talking about his
experiences having his property seized, Davis told the city
council: “The Justice Department is coming now and you’ll have to
turn the records over to the Justice Department.” We’ll see.

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Watch: Should Libertarians Vote for Republicans in 2014?

“Should Libertarians Vote for Republicans in 2014?,” our
interview with Republican National Committee press secretary
Kirsten Kukowski on the midterm elections, is the latest from
Reason TV. Watch above or click the link below for full text,
links, downloadable versions, and more. 

View this article.

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USDJPY Spikes On 10-Day-Old News About Japan’s Pension Fund Allocation

Day after day after day this ‘market’ is manipulated and managed by headlines that memory-less machines read and act upon. Today – yet again – at 210am Japan time, Nikkei news decides it is time to print these headlines:

*JAPAN GPIF TO CUT JAPAN DEBT ALLOCATION TO 35%, RAISE DOMESTIC STOCK ALLOCATION TO 25%: NIKKEI

And sure enough JPY explodes instantly in an attempt to spark momentum. This is not news (it’s a constant headline every day since October 19th) as Abe sacrifices his economy and his people’s economic future for an uptick in stocks.

 

 

This is not news!!!! its 10 days old!!

 




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Tailing 7 Year Auction Is Carbon Copy Replica Of Yesterday’s 5 Year

If one had to pick a carbon copy replica of yesterday’s 5 Year tailing auction, today’s 7 Year probably ranks toward the top. Just like yesterday, the auction priced with a tail to the 2.009% WI, coming in 0.9 bps wider at 2.018%. Just like yesterday, the high yield was a steep drop from the September auction, sliding from 2.24 to just over 2%, and just like yesterday the Bid to Cover slid alongside the yield, with the 2.415 BTC printing at the lowest level since November 2013. Finally, and just like yesterday, the internals demonstrated the same trend with Directs taking down 15.42%, less than the 23.11% TTM average, Indirects ended up with 46.6% or more than the recent average, and dealers left holding 38.0%: right on top of where it has been in the past year. In fact, the only difference from yesterday is that there is no FOMC announcement in less than an hour.




via Zero Hedge http://ift.tt/1zjp5Jp Tyler Durden

022: These investments should do well no matter what happens in the global economy

Investments Global Economy Podcast 022: These investments should do well no matter what happens in the global economy

October 30, 2014
Santiago, Chile

Do you remember all the great economic forecasts that ever came out of the Fed? I don’t either.

My favorite one was when 9 months before the Great Recession kicked off, the Fed Chairman, Ben Bernanke, remarked: “The Federal Reserve is currently not forecasting a recession.”

We all know of course what happened next. These people have a horrible track record. This is not a dig at anyone personally, it’s just simply a fact of how the system works.

So yesterday the Fed, under Chairwoman Janet Yellen, announced that they’re bullish on the economy. That the economy is doing well, so they’re going to stop their asset purchase program a.k.a. Quantitative Easing.

First of all, QE should never have happened. It was the single worst policy decision for the US dollar. The Fed expanded its balance sheet by more than a factor of five using QE in only a few years.

What effect has it really had? The whole world is starting to ditch the dollar, banks have been recording record profits, US and worldwide debt has surged to astronomical figures, and asset prices across the board have reached record highs.

Everything, from house prices, stocks, bond prices and collectibles is simultaneously at all time highs. This is NOT normal.

It has enormously benefited those at the very top. Yet for the average people it has largely been destructive by ruining the purchasing power of their dollars.

So while it’s good that the Fed is ending its destructive program, the reasons behind it are completely screwed up. Their analysis whether the economy is healthy starts from a wrong premise.

We discuss this in today’s podcast.

How wealth can’t be conjured out of thin air. How GDP growth figures aren’t important at all. The three factors that really matter to measure wealth on an individual and macro level. And what you can own that will do well in an inflationary OR deflationary environment.

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This One Picture of Telly Savalas Refutes All Fears That Progress Has Ended

Intrigued? From my latest
Daily Beast column
:

I started receiving People magazine recently,
and as I was leafing through its ho-hum 40th anniversary issue, I
stumbled across this 1974 cover featuring Telly Savalas, the man
who mainstreamed baldness into everyday life (screw you,
Yul Brynner!) and portrayed Kojak, one of the most memorable
small-screen detectives up to that point in TV history. This cover,
I submit, is as sharp a rebuke to the “progress is over!” crowd as
Samuel Johnson’s stone-kicking hissy fit was to Bishop
Berkeley….

The middle class can’t afford nothing no more, Amazon’s
warehouse workers are “today’s coal miners,” and even bomb-crazy
and jihad-suffering Middle Easternersare more optimistic about
the future than Americans and Europeans. The Experts (with a
capital E!) have spoken: We’ve reached The
End of Progress
….

bear with me here. Cue up Telly’s
incomparable semi-parlando rendering of If. Get
lost in the Aegean-deep pools of Telly’s eyes and marvel at his
gold-chain-and-bracelet set. As you contemplate a naked celebrity
torso apparently unfamiliar with any form of exercise, let’s count
the ways in which the world has not just gotten a little bit better
but a whole fucking lot better since Kojak was on the case.


Read the while thing, baby
.

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Waste, Bureaucracy, and PR Stunts: The Case of the Red Cross

NPR and ProPublica have published a
detailed account
of the Red Cross’ poor performance after
Hurricane Isaac and Superstorm Sandy. The story reads like a
primer in the problems of centralization, with national
headquarters regularly substituting its own judgement for that of
the people on the ground. At one point after Sandy hit, for
example,

If only they'd called the record "Breakfast with Redd Kross," this image would have been perfect.headquarters issued an edict
that the New York operation needed to start producing more
meals.

That wasn’t the problem, [Richard] Rieckenberg told his superiors.
He was in charge of tracking food and, at the time, the Red Cross
was already wasting three out of every 10 meals being prepared, he
estimates. The real issue was that the Red Cross was failing to
gather information about where hungry victims were located.

Officials at the Red Cross’ national headquarters stood firm over
Rieckenberg’s objections. They directed a catering company to
increase its output dramatically, from 20,000 to 220,000 meals per
day. And it had to start with breakfast for 100,000 the next
morning.

In the ensuing chaos, the caterer was only able to deliver 70,000
Danishes the following day, Rieckenberg says. The cost to the Red
Cross: about $7 apiece, much more than normal. Top Red Cross
officials had assured Rieckenberg that someone would get him the
locations where staffers could deliver the meals. The list was
never supplied. About half of the pastries were
wasted.

Worse still, the leadership sometimes diverted resources from
genuine relief to public relations. In Mississippi after Issac hit,

An official gave the order to send out 80 trucks and
emergency response vehicles—normally full of meals or supplies like
diapers, bleach and paper towels—entirely empty or carrying a few
snacks.

The volunteers “were told to drive around and look like you’re
giving disaster relief,” Rieckenberg says. The official was
anticipating a visit by Red Cross brass and wanted to impress them
with the level of activity, he says.

After Sandy, a much-needed emergency response vehicle was
instead “dispatched to an early December photo-op with supermodel
Heidi Klum to tour affected areas with Red Cross supplies.” The
reporters quote one official’s response to the PR stunt: “Did you
know it takes a Victoria’s Secret model five hours to unload one
box off a truck? I was so mad.”

In fairness, one of them is holding a Red Cross kit.The article alludes a couple of
times to the more decentralized and volunteer-driven groups that
surfaced after the storms. A man from the Rockaways mentions that
Mormon and Amish volunteers “appeared at my doorstep offering
much-needed help” three days after Sandy, a response he contrasts
with the two weeks it took before “the only Red Cross truck my
neighbors or I saw” showed up. Later there is a reference to

Occupy Sandy
, an Occupy Wall Street offshoot whose horizontally
organized relief work drew a lot of praise after the storm hit. (At
one point, Occupy Sandy had four times as many volunteers in the
field than the Red Cross did.)

It makes sense to expect such networks to be more flexible, more
capable of adjusting to conditions on the ground, and—when the
groups are themselves locally based—more receptive to local
knowledge. This is understood even within the halls of the
Department of Homeland Security, which commissioned a
report
last year that highlighted Occupy Sandy’s successes.
Occupy, the paper concluded, not just complemented the official
effort but “in some cases filled critical gaps.” (One interesting
observation from the DHS report: “In circumstances of rising public
distrust of hierarchical institutions, as is the case in many
communities within the United States today, it would not be unusual
for horizontal grassroots disaster relief networks with strong
affiliations within certain communities to be chosen over
professional response organizations that might try to assert
control over a complex operating environment in a disaster.”)

The Red Cross, in comparison, is a lumbering beast. It is
essentially a public/private hybrid—the organization is
chartered
by Congress
to fulfill specific mandates, including relief work
coordinated by FEMA, but it is formally independent of the
government and largely raises its own funds. It devotes
far more of its budget
to its (very valuable) blood and plasma
services than to disaster response, but it uses disasters as a
fundraising opportunity. It is clearly better suited for some sorts
of recovery work, such as operating shelters, than others, such as
the areas where the Mormons and Occupiers outperformed it. And to
judge from the NPR/ProPublica report, it suffers from a severe
surplus of bureaucracy. To read the rest of the exposé, go
here
.

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Alan Greenspan: QE Failed To Help The Economy, The Unwind Will Be Painful, “Buy Gold”

It appears it is time for some Hillary-Clinton-esque backtracking and Liesman-esque translation of just what the former Federal Reserve Chief really meant. As The Wall Street Journal reports, the Fed chief from 1987 to 2006 says the Fed’s bond-buying program fell short of its goals, and had a lot more to add.

Mr. Greenspan’s comments to the Council on Foreign Relations came as Fed officials were meeting in Washington, D.C., and expected to announce within hours an end to the bond purchases.

 

He said the bond-buying program was ultimately a mixed bag. He said that the purchases of Treasury and mortgage-backed securities did help lift asset prices and lower borrowing costs. But it didn’t do much for the real economy.

 

“Effective demand is dead in the water” and the effort to boost it via bond buying “has not worked,” said Mr. Greenspan. Boosting asset prices, however, has been “a terrific success.”

 

 

He observed that history shows central banks can only prick bubbles at great economic cost. “It’s only by bringing the economy down can you burst the bubble,” and that was a step he wasn’t willing to take while helming the Fed, he said.

 

 

The question of when officials should begin raising interest rates is “one of those questions I cannot answer,” Mr. Greenspan said.

 

He also said, “I don’t think it’s possible” for the Fed to end its easy-money policies in a trouble-free manner….

 

“Recent episodes in which Fed officials hinted at a shift toward higher interest rates have unleashed significant volatility in markets, so there is no reason to suspect that the actual process of boosting rates would be any different, Mr. Greenspan said.

 

 

“I think that real pressure is going to occur not by the initiation by the Federal Reserve, but by the markets themselves,” Mr. Greenspan he said.

And finally – while CNBC’s audience is told what a terrible thing gold is, “The Maestro”, having personally created the financial cataclysm the world finds itself in following a lifetime of belief in fiat, Keynesian ideology and “fixing” one bubble with an even greater and more destructive asset bubble, has suddenly had an epiphany and now has a very different message from the one he preached during his decades as the head of the Fed.

Mr. Greenspan said gold is a good place to put money these days given its value as a currency outside of the policies conducted by governments.

What Greenspan failed to add is that it is thanks to his disastrous policies (subsequently adopted by Bernanke and Yellen) that gold is the “place to put money.”

And now, paging Scott Nations.




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