Since the Knight-algo was put-to-death, NYSE volumes have coincidentally plunged by 40%!

FXS – 1 millisecond interval, showing about 1 second of data.

The above picture appears to be an algo testing out its ability to rapidly back away from the market from multiple exchanges when a large, informed order appears. Based on this chart, it looks like HFT is able to withdraw from multiple markets in a few milliseconds. (

Since the Knight algorithm was taken out of the market, the volume of stock trades on the NYSE has dropped 40%. This means that the bulk of stock trades are high frequency trades (HFT) and program trades at the end of the day where price is irrelevant. Program trades executed by “brokers” investing in retirement plans, just dump your allocation into the pot and go home: the price of the stock does not impact their commission or salary. This accounts for about 25% of the day’s trades and why the markets usually go up at the end of the day.

But let’s get back to the picture. And it is the big picture since the wealth will be transferred to the people manipulating our economic collapse. The ability to sell stocks at a high volume, in a short period of time across multiple stock exchanges will allow them to preserve their assets and collapse the world’s economy at the push of a button. This is not the first time these “tests” have occurred. Based on the emerging pattern, I suspect the “crunch” will occur 3 seconds before the close of the stock market as done in a previous test. Friday before a three day holiday would be an option but I am not counting on it.

In fact, I am not counting on the stock market or the US dollar: I choose not to participate in a system that is doomed to fail. When I cashed in my IRAs (including penalties), I experienced a sense of relief that I did not understand at the time. Now I do: I am in charge of my future. The $55,000 loss in tribute to this “government” was a small price to pay to regain my Liberty and dignity.  For those who are in denial and are more concerned about monetary assets than personal responsibility and public virtue, I will not give you financial advice. You must decide to remove your own chains.

The above picture shows that our “collapse” will be quick; it will not be a slow decline. Ask yourself what you will do in the following scenario:

Italy realizes that it cannot repay its debts and withdraws from the European Union. The Lira becomes the official currency (it is now being used for financial transactions even though it has no official backing). Portugal, Spain, Ireland and/or Greece quickly follow. The Euro collapses and several large European banks go bankrupt. Our banks in the United States have over $700 trillion in exposure to European credit derivatives that are now in default. Bank runs start across the country but the SEC announces that money market accounts are “temporarily” suspended. A bank holiday is declared a short time later but this is a different kind of bank holiday: all electronic banking is also offline. No credit cards, no debit cards and no ability to get cash from an ATM. Whether EBT cards are impacted is not relevant since grocery stores will only accept cash, silver and gold. What happens in 48 hours?

Do you have food and cash to last one week? How much cash do you need to last a week under this scenario where hyperinflation will render our fiat currency worth less? If you cannot answer these questions, you are not in charge of your future.

David DeGerolamo

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