GOOG mini-spike

L

ljyoung

Spikes like this (please see attachment) occur not infrequently with GOOG (~4 points) and many other equities. Does anyone have any thoughts on this phenomenon?

lj
 

Attachments

Quote from nazzdack:

According to the Time & Sales Report, it looks like a "bad tick". It should be deleted.
More...

Your response is certainly what CW would attribute this spike to. Is the "bad tick" designation because there was just a single price point and no further immediate activity at 509.70?

As of 1:30 ET, the bar remains (my raw data vendor, DTNIQ, usually clears bad ticks).

For amusement, let's say it wasn't a bad tick. Who would do something like this and how would they make money by doing it?

lj
 
Quote from ljyoung:

For amusement, let's say it wasn't a bad tick. Who would do something like this and how would they make money by doing it?
More...

It's clearly an erroneous trade.

The only way someone would make money would be if they bought that bogus sell print and NASDAQ (or the ECN) didn't break the trade. They would then sell it instantly for a free 4 points.

99.999% of the time, an obvious bad print like that gets broken.
 
Quote from Longhorns:

It's clearly an erroneous trade.

The only way someone would make money would be if they bought that bogus sell print and NASDAQ (or the ECN) didn't break the trade. They would then sell it instantly for a free 4 points.

99.999% of the time, an obvious bad print like that gets broken.
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Thank you for your thoughts. If NASDAQ (or the ECN) breaks the erroneous trade would one expect that at some point (I really don't know when) the trade would be "removed" from the T&S print? Is it at all possible that someone could buy the sell print and then wait till later to sell it or would NASDAQ immediately break the trade at the point of the buy of the bogus sell?

Another possibility is that indeed it was a bad print but was being used as a flag for coming price action. GOOG sold off shortly after the print and of interest, the 590.70 price marked a "low" on the 3 minute bar in the sense that there was no sustained close (2 consecutive black bars down) below that price.

lj
 
I have seen this phenomenon many, many times and very frequently (but not always) price comes to the spike point in a relatively short period of time - sometimes intraday, sometimes the next day. There was a mambo spike down this AM on SPY to around 143, so it will be interesting to see if anything comes of that one over the next day or so.

lj

PS: If no one wishes to continue discussing the phenomenon, I will shortly see to it that like Zed, the thread is dead.
 
I tried to close the thread but was not successful. So some more thin gruel mixed with spittle.

Not GOOG but an interesting variation on intraday spikes - the 11:06 2 minute bar for DIA spikes down (outside down bar) from 132.75 open to 131.75 low with big V (398.7K) and with no counterpart on YM (not that there need be one). Here's the T&S which encompasses that low:
06/08/07 11:07:21 132.61 132.59 132.60 600
06/08/07 11:07:21 132.61 132.59 132.60 600
06/08/07 11:07:21 132.61 132.59 132.60 600
06/08/07 11:07:21 132.61 132.59 132.60 400
06/08/07 11:07:21 132.61 132.59 132.60 200
06/08/07 11:07:21 131.75 132.59 132.60 3600
06/08/07 11:07:21 132.59 132.59 132.60 200
06/08/07 11:07:21 132.59 132.59 132.60 400
06/08/07 11:07:21 132.59 132.59 132.60 100
06/08/07 11:07:21 132.59 132.59 132.60 500
06/08/07 11:07:21 132.60 132.59 132.60 500
06/08/07 11:07:21 132.60 132.59 132.60 100

but here's a big chunk of the V in that 2 minute bar:
06/08/07 11:06:53 132.69 132.69 132.70 400
06/08/07 11:06:54 132.71 132.69 132.70 500
06/08/07 11:06:54 132.71 132.69 132.70 600
06/08/07 11:06:54 132.71 132.69 132.70 500
06/08/07 11:06:54 132.73 132.69 132.71 60000
06/08/07 11:06:54 132.70 132.69 132.71 500
06/08/07 11:06:54 132.70 132.69 132.71 500
06/08/07 11:06:54 132.70 132.69 132.71 500
06/08/07 11:06:54 132.70 132.69 132.70 500
06/08/07 11:06:54 132.70 132.69 132.70 500
06/08/07 11:06:54 132.70 132.69 132.70 100

Yet another bad tick or could it be a validation of today's signal from SPY for a lower low which in turn was a validation of yesterday's RTH closing signal from DIA for a low which would be lower than its closing low????

So what's the bottom line? Lower low today (probably) for SPY and let's see if the 131.75 low holds for DIA. Or does it get scratched [by price or by ze regulators]? I dunno.

lj

How does that Billy Idol song go?
 
SPY tried but failed -today. Another bad tick?

06/08/07 14:52:02 150.50 150.49 150.50 400
06/08/07 14:52:02 150.50 150.49 150.50 100
06/08/07 14:52:05 150.50 150.49 150.50 100
06/08/07 14:52:05 150.50 150.49 150.50 100
06/08/07 14:52:05 149.30 150.49 150.50 860000
06/08/07 14:52:05 150.50 150.49 150.50 100
06/08/07 14:52:06 150.49 150.49 150.50 300
06/08/07 14:52:06 150.49 150.49 150.50 300
06/08/07 14:52:06 150.49 150.49 150.50 400

lj
 
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