Two days ago there was some strange trading activity before the May Consumer Confidence number came out. There was an explosion in SPY (the SPDR Sector S&P ETF), the eMini (electronically traded futures) and hundreds of other stocks 1/4 second before the number came out.
In trading time, that’s forever.
Eric Hunsader the CEO of market research firm Nanex, told Business Insider that the strange activity was most likely a case of ‘banging the beehive.‘ That’s the phrase traders use to describe what happens when a high frequency trader sends out a barrage of orders before right before a key event (like a report), impacting price and forcing everyone in the market to move their positions.
It’s wild stuff, and seeing it in action is even wilder. Today, Nanex posted a video of trading in the SPY ahead of the Consumer Confidence number. You can check it out below. It shows a half second before the 10:00 am announcement, slowed down for 5:39.
You’ll note activity explodes at 9:59:59.755.
Also, just FYI, the little colourful bars are exchanges.
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