Flash Crash Slams Several Stocks

Got this in my comments:

• newbie has left a new comment on your post "MaeMode Defaults Its Loan Payments And Enters PN17...":
  
  Dear Moolah, Did you notice the sharp fall in a number of stocks today?Stocks like BJTOTO,BKAWAN,TDM,CBIP and COASTAL plunged near the end of the session .Remembered you wrote about a similar subject some time ago.Any conspiracy theories behind such fall? Spooked quite a number of people.Thanks for your time reading this. 

 Yes, I did write about this before and it's rather spooky again.

This is the 3rd time something like this happen and yet here we are again.

Has something been done?

Are they gonna say it's an error trade again?

21 Oct 2011:
And almost one year ago,About Stock Market Yesterday: The Day KLSE Decided to Have Gap Up And Gap Down All Over

Same thing all over again.....!!!!!

Several stocks went limit down at the very last minute of trade.

Several stocks shot up too!!!

Come on SC.

Come on Bursa.

Don't tell me you guys saw nothing.............

Apparently they did and they just said " Trades ‘valid and genuine’

!!!!!!

• Six counters from mid-caps to big ones, namely, Hap Seng Plantations Holdings Bhd, Batu Kawan Bhd, TDM Bhd, CB Industrial Product Holding Bhd (CBIP), Coastal Contracts Bhd and Berjaya Sports Toto Bhd, hit limit-down, or a 30% plunge, with a combined trade of RM43.1mil in that short time window during pre-close.
  
  While the trading pattern may seem like an “error in trading” could have taken place, a Bursa Malaysia representative when contacted by StarBizWeek clarified: “With regards to the eight stocks which hit their limits-up (two) and down (six), Bursa Malaysia has investigated the matter and has confirmed with the broker that the basket order, which was from their institutional client, was valid and genuine.”

Valid and genuine????


Has the institutional client lost their marbles???


Why DUMP all those shares and sell with limit down orders????


You believe???


Yeah, I think extremely likely of the pre-close trading. It's nonsense and we get to see nonsensical trades like this!!!

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Here is how the flash crash looked like....

HSPLANT

BATU KAWAN

TDM

See how these stocks literally fell off the cliff near the end of closing trade???

Which institutional client would give a mindless trade order like this??????

I just highlighted 3. There are more.

And here is the opposite.

Some stocks went straight up!!!!!!!!!!!!!

JCY

STAR

Oh yes, there are several more stocks trading in such an outrageous manner at end of trade. Some plunging while others surge limit up.

What gives?

Come on Bursa, you cannot just say that these trades are from an institutional client and that the trades were valid and genuine.

Of course they are valid.

But.... think lah.

Do you call this a fair and orderly stock market???

Well again... if these institutional clients are so important then what about the retail investors???

Which retail investors wants to be a long term shareholder when market shenanigans like this happen and the culprits get away freely????

Sigh.

About Stock Market Yesterday: The Day KLSE Decided to Have Gap Up And Gap Down All Over

Three words that best described yesterday's stock market were "What The Hell!".

Yes, the market closed up some 8 pts and all you read is comments like the following:

• On Bursa Malaysia, Nestlé was the top gainer, jumping RM2.20 to RM57.40. Carlsberg was up RM1.68 to RM12.98, Pharmaniaga added RM1.51 to RM6.50; Dutch Lady rose 90 sen to RM34.54; TDM climbed 54 sen to RM4.55; Takaful advanced 27 sen to RM5.51; Tradewinds rose 33 sen to RM9.30; IJM Land and UMW added 31 sen each to RM2.38 and RM8.70 respectively; while MMHE was up 30 sen to RM5.40.
  
  The actives included Luster, DSC Solutions, Hap Seng, Flonic, Maybank, Telekom, DiGi and Arientec. The decliners on Friday included BAT, F&N, United PLANTATION []s, GAB, Aeon, Batu Kawan, Petronas Dagangan, Petronas Gas and Genting Plantations.

Taken from http://www.theedgemalaysia.com/business-news/215505-klci-closes-861-points-higher-week-on-week-as-global-shares-rise-.html

What was most interesting was how the stocks traded!

Take Telekom or TM. The stock had appeared to have a normal trading day. It opened trading at 5.52 and close the day down 9 sen at 5.42. Nothing out of ordinary until one inspects how the stock closed the day down 9 sen.

As you can see the sudden plunge of the stock right at the closing bell. Look below at how the stock was trading at 16:44:12. Stock was trading at 5.50 just before the last trade closing. Then somehow the market decided that the stock should trade some 16 bids lower at 5.42! 16 bids lower!

This is the 5 min chart of TM.



See how the massive gap down in the very last trade?

( Ah.. the

Perhaps this is not the best example!!! Yes, embrace for some even more drastic intraday trades.

Let's look at FN, one of the decliners yesterday.

FN PLUNGED at the last closing trade!!!!

FN was trading at 18.46 at 16:40:12. Then at the closing day trade, the markets decided that FN should trade at 16.80. And that's just a swing of a mere 1.66!!! That's just a gap down of 17 bids!

Yes, that's how a 17 bid flash crash looks like!

Look at the spike in volume too!

Yeah Flash Crash postings. Do refer the posting made in 2010: They Just Don't Trust Wall Street. Well at least the stocks mentioned somehow recovered. In FN Holdings case, the stock literally died at closing bell!

Yeah... what the hell!!!!!

Want another one? Let's look at another one, BAT  I will just post the 5 mins intraday chart and just like FN, BAT plunged at the close!

And DIGI plunged too at the closing bell.

And then Media? It decided to do something different. It had an incredible upwards surge during the morning!!!

At 10:02:20 the stock was trading at 2.36. Five seconds later at 10:02:24, the stock went down to 2.27. And within the same second, the stock tracker showed the stock had jumped back up in a flash to 2.40. WOAHHHH!!!!

And IT wasn't done! Look below.

The very last second of 10:02 or at 10:02:59, the stock has surged to 2.78!!

So at 10:02, in that 60 seconds, the stock went from 2.36 to 2.27 to 2.78!!!!

Oh yeah... What the hell!

And the party ended just as fast. At 10:03:42, the stock went from 2.78 to 2.41!!!!

Holy cow!

Here's KLK. It did its crashing right early in the morning trade!

IOI went straight up just before closing.

Nestle? Nestle just went up straight up like crazy in the morning trade.

I really can go on and on. What one will see is a sudden gap up or down (with heavy volume too)  in the stock trading.

Let me name some other stocks. Maxis, Petronas Chemicals, Petronas Dagangan, Maybank, RHB Cap, Sime, United Plantations, Genting Plantations, Parkson, Shell, Asia File, Sunway, MPHB, Orient.

And this 'long' list is derived from a quick glance thru. I am sure the list is much longer!

So how?






ps: Any news coverage on this incredible gap-ing day? Did someone did some test run on their new fancy stock trading algos?

ps/ps: Here's a recent article on the Edge: http://www.theedgemalaysia.com/in-the-financial-daily/209862-moving-towards-frictionless-markets.html

ps/ps/ps: Feel free to add to the stock list.

-----------------

Thanks to solomon :

Carlsberg: How's this for a melt UP??!!

GAB! Now this a good one thanks to kjgooi.

Well if Carlsberg went into a melt UP during closing, why on earth did GAB do a melt DOWN????!!!

LiveDeal Surges 216% Because Of........ Nothing!

I do take a peep at market movers occasionally.

On CNBC: http://www.cnbc.com/id/15839121/site/14081545/

WOW! LIVE surged 216.7%!!!!

Then I saw the one year chart.

Nice one day surge!

This how the stock traded 216%


From a day low of 4.56 to a shocking high of 22.25 before closing at 14.00!!!

And the bulk of the incredible trade came in the last hour.

LOL! LOL! LOL!

Now this is what you call a stock market!

Can you repeat after me? :=)

Now this is what you call a stock market! Now this is what you call a stock market!

No wonder they can make films (and make money) based on the stock markets!

ROFLOL!

Any hot news?

Then I ask my Auntie Google for some news on LiveDeal.

My answer?

I saw this: LiveDeal (LIVE) Surges On... Nothing‎

Last month: LiveDeal Regains Compliance with Rules for Continued Listing on NASDAQ Capital Market

• LAS VEGAS--(BUSINESS WIRE)--LiveDeal, Inc. (NASDAQ: LIVED - News), a provider of Internet marketing services for small businesses, announced today that it has regained compliance with the $1.00 per share minimum bid price requirement set forth in the rules for continued listing of the company’s common stock on the NASDAQ Capital Market.
  
  As previously disclosed, on April 8, 2010, LiveDeal received notice from NASDAQ that the bid price of its common stock had fallen below $1.00 for 30 consecutive business days and was, therefore, not in compliance with NASDAQ Listing Rule 5550(a)(2). LiveDeal was provided a 180-day grace period, scheduled to expire on October 5, 2010, to regain compliance by posting a closing bid price of $1.00 per share or higher for a minimum of 10 consecutive business days. The company implemented a 1-for-10 reverse stock split, which became effective on September 7, 2010, to regain compliance. On September 21, 2010, NASDAQ notified LiveDeal that the company had regained compliance with Listing Rule 5550(a)(2) by posting a closing bid price per share of $1.00 or greater from September 7, 2010 to September 20, 2010. NASDAQ also confirmed that the matter is now closed.

I them peeped into LiveDeal's income statement: http://finance.yahoo.com/q/is?s=live

Losing money! No wonder the stock traded below 1 for 30 consecutive days. A 1-10 reverse stock split too! LOL!

LOL! Then I saw ZH:LiveDeal Flash Smash Sends Stock Up 365%, Nukes Shorts

ZH is calling it a flash smash!

ROFLOL!

But the details of how the stock shot up... is rather shocking! (do check out the screen shots provided on ZH)

• Today's flash smash comes courtesy of microcap company LiveDeal (Nasdaq: LIVE, market cap around $3 MM) where thanks to a rogue (presumably - there are no news in the name) algorithm the stock shoots up from an opening price of $4.79 all that way to $22.25 in about one minute: a gain of 365%, which is too rich even for KKR's new prop group. And no, this is not a fat finger as the QR screen below shows: the algo was busted enough to lift every single offer in a row - there were virtually no downticks for the span of over 15 seconds. The result: 1,679 shorts end up with an almost 400% loss (one of the benefits of unlimited downside shorting). And as the stock has very little liquidity it is very likely that assorted brokers took matters into their own hands and force covered all those who were underwater and losing substantially. And the cherry on top: not a single trade has been busted. In other words, exchanges are more than happy to unwind trades immediately when an algo loses money, but when an algo creates thousands of forced buy ins and retail investors are left with huge losses, then no luck on the DK. What is scariest is that HFT has now gone microcap: with Apple, Amazon, BofA and Netflix bled dry, it is about time the robotic scalping crew found new pastures.

Ahem... the following statement by ZH:

• And the cherry on top: not a single trade has been busted. In other words, exchanges are more than happy to unwind trades immediately when an algo loses money, but when an algo creates thousands of forced buy ins and retail investors are left with huge losses,

On Tuesday, the following was posted: Another Day Another Flash Crash, 10% In 8 Seconds!

That crash was cancelled. "The NYSE Euronext (NYX) said Monday it had busted — i.e. canceled — trades in the SPDR S&P 500 ETF (SPY). "

Now this is what you call a stock market!!!

!!!!