TimingLogic's Blog

Reasoned, Relevant And Often Contrarian Commentary On Economics


October 24
I'm an electrical engineer and mathematician by training. My career has spanned diverse areas of expertise from being part of a team which designed the world's most powerful computers to corporate consulting around business transformation and information-based solutions to being a corporate sales and marketing executive in the information technology and business consulting space. I’ve led teams responsible for innovative and transformative solutions and been part of teams that helped set strategy for many of America's greatest companies. Two of my interests are econometrics, democratic finance and quantitative - qualitative analysis. Over the years I have developed risk-based models and trading systems meant to identify significant investment opportunities and periods of extreme risk. My blog is an outlet for another of my passions, writing. I generally consider myself a contrarian. Therefore, many of my rantings are meant to encourage people to question what they believe to be true. Terms of Use & Disclaimer: First off, I don't take anything on here too seriously and you shouldn't either. These are simply sardonic rantings of Bill, my alter ego, often meant to agitate for peaceful & nonviolent reform. This web site reflects the views of its authors. It is unaffiliated with any NASD broker/dealer. Statements on this site do not represent the views or policies of anyone other than its authors. The information on this site is provided for discussion purposes, comedic relief and entertainment only and are not investing recommendations. The authors may have positions in securities mentioned herein. Under no circumstances does this information represent a recommendation to buy or sell securities. While information discussed on this site was gathered from what are believed to be reliable sources, in no way is informational accuracy guaranteed. All information on this site may contain errors and omissions. Trading and investing involves high levels of risk. Always consult a licensed financial advisor or broker before making any and all investment decisions. Authors of this site and any sites which are fed by said site, including Open Salon and others, will assume no responsibility for the actions of the reader and user. Readers and users agree, as condition to accessing this site, to release and hold harmless this site's authors from all liability in connection with this site or any views posted on this site. All readers and users of this site agree that use of this site requires acceptance to the current Terms Of Use & Disclaimer and that current terms include any and all use and material from site inception. If you do not understand these statements in their entirety or do not agree to be bound by this current agreement, you must immediately discontinue use of this site. This Terms Of Use & Disclaimer may change at any time and it is the reader's and user's responsibility to review, understand and abide by any updates.

TimingLogic's Links

FEBRUARY 7, 2013 10:22AM

Orwellian Financial Market Dynamics Part Four–SPY ETF Celebrates 20th Anniversary

Rate: 2 Flag


The SPY ETF isn’t exactly a derivative in the typical sense of the word.  But, it is “derived” from underlying assets.  ie, S&P 500 equities.  The SPY is one of the most popular trading vehicle in the world and is an easy vehicle to manipulate markets. 

I clipped this image a little too aggressively and only got 1997 as the starting date.  But, this is the accumulated positive volume of the SPY ETF from 1997 to today.   Think of this as the volume advance-decline line for the SPY.  From the introduction of the SPY ETF in 1993 to the peak of the Internet bubble in 2000 the SPY positive volume increased 20,000%.  Even if I clipped this image accurately at 1993, the move from 1993 to 2000 is unrecognizable to the human eye at this scale.    That volume swell leading up to the 2000 Internet bubble collapse almost looks like a rounding error in comparison to what happened from 2003 onward.  The positive volume since then has swelled to 4,300% larger than the volume leading into the 2000 peak; which was the largest stock market bubble in history.   Put another way, an 86,000,000% increase has taken place in the SPY’s volume after its first year of introduction.   That’s right, dog breath.  

Some might make the argument that ETFs are replacing mutual funds and that could help help explain the incredible swell in volume but that isn’t consistent with reality.  The reality is the entire float of the ETF is turned over about every five days.  In other words, just like every other financial instrument, long term investing is a joke. It’s all speculation.  In case you still don’t get it, this kind of parabolic bubble in financial market demand is representative of massive gambling and speculation.  A hint –>> Umm, this always ends badly. 

The most interesting part of all of this is that overall market liquidity is actually declining very substantially and has been for some time.  More on that in my next post in this series.

Your tags:


Enter the amount, and click "Tip" to submit!
Recipient's email address:
Personal message (optional):

Your email address:


Type your comment below:
compare it to something beside itself. If speculation around this paper is increasing, the speculation in other paper must be doing something different because of this...or real investment in actual assets must be doing something...

Just telling me what one thing is doing in relation to nothing is a waste of my time (yeah, yeah, yeah...lead up to dot.com blah, blah, blah...with only itself as a comparison).

Dig deeper. You're almost there.
I dare say you are wasting my time with incoherency.
Recently I did the numbers on the compounded growth of adverting expenses over the past several years or decades. This chart look about right for that regardless of what it was intended for; we're replacing merchandise with adverting and expensive lies.
Indeed we are. It's the corporate state's "propagandization" of our society.