We had a more bullish tape yesterday as 81 of the 150 detected programs were buys, but the sells were bigger and left us with a deficit of about $1B to the sell-side. Total trade for the day was 35B in SP500 triggered programs.
Price Action During Program Trades
The first detected program trade past the open executed at 9:59:59 ET trading 364 symbols in 6.7K different trades for $91.7M. Sell programs tended to fire off in pairs over the day with the 3953 area being capped in the morning. The mid-day lows had some buy programs. The “Final-2” hours was quite bullish with the first-hour having 3 buy programs and one sell. Price action became aggressive at 15:01 when two large buy programs triggered. The final 30 minutes saw selling action but as mentioned in the MiM, there never was a strong broad-based sell-off. Tech appeared to be the selling target yesterday.
A barrage of programs fired off starting at 15:00 ET and into the close. For more details around the Market On Close you can see our MiM daily report.
What is an STTProgram trade?
SpyGate detects several different types of programs trades. The STT progam is a simultaneous triggered trade where a broad number of symbols trade at the same time with considerable dollar volume. As the trades are detected, the price action around the trade helps us deduce if the program was a buy or a sell. Our detector reports the number of symbols in the trade, the number of individual trades executed, and the dollar amount of those trades.
What is SpyGate:
SpyGate is a proprietary tape reader that analyzes price action on all the exchanges and sniffs out unusual trades. This detector follows price action and accumulates adaptive knowledge using Machine Learning (ML) and Deep Learning Artificial Intelligence (AI) to deduce algorithms and program trades as they are executing. The first implementation detects STT Programs ( Simulatanousely Triggered Trades). These trades are in the many thousands and millions of dollars and are executed all at once on many different symbols. This product is under heavy development and is currently available free for our traders in our TradeChat trading room along with the MiM and live breaking news. You can join us by purchasing a subscription to the MiM.