Glitches, Gold and Gaul: the truth will out
“I’ve been monitoring this for some time,” a NYSE contact told me last Monday, “and just about the only time these electronic glitches occur is when the market looks ready to choke.”
Now today a Greek contact sends me a guest piece at Paul Craig Roberts: note the uncanny resemblance:
‘Every time the S&P 500/Dow are in a free-fall, one of the big HFT electronic commications networks (ECNs) mysteriously “breaks”…today the S&P 500 was down 16 points and falling quickly. Then the BATS ECN announced that it had to suspend trading in all of its trade routing systems to the NYSE. It just so happens that BATS is one of the largest, if not the largest, electronic communication networks in the world. This happens every time the stock market goes into cliff-dive mode. How come it NEVER happens when the S&P 500 is going parabolic to the upside?’
A few years back, this would’ve been dismissed as conspiracy NVE drivel, but not today: being prepared to report these things in 2015 is no longer the ‘pilots won’t report UFOs’ thing: after Libor, the RBS repossession scam – and some pretty crude gold manipulation – even the fans of bourse monopolism accept that the unmentionable solids come in all the sizes, all the shapes, and profusion down there in the deep liquidity pools of light-speed trading.
Talking of gold, I posted recently about gold continuing its steady value destruction process. Yesterday afternoon it challenged $1200 a couple of times. This morning at 8.00am and 11.35am CET it tested the same level again. In the context of current events, this is so ludicrously counterintuitive, it would be funny if lots of not that wealthy retired folks weren’t getting so monumentally screwed.
But some fundamentals simply can’t be ignored forever. Today, the French government released statistics showing that the country has a quite astonishing level of unemployment: 10.4%. At this rate, France will soon be applying for official membership of ClubMed. The French press have used the term “highest for 17 years”, but even this is putting a brave face on it: it’s 17 years since new and incomparable records began to measure ‘real’ French unemployment. The chances are this is the hexagon’s worst set of figures since the late 1940s.