– Did Today’s “Satan Signal” In S&P Futures Give The ‘All-Clear’ For Selling To Begin? (ZeroHedge, Oct 9, 2014):
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.
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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.
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Oh, one more thing, this all happened just after VIX ‘fat-fingered’ spike down and VXX volume surged, launching today’s selloff.