UNG the Target of Algo-Trading

NANEX has confirmed that UNG was one of the targets of berserk algorithmic trading this morning.

I have recently said that UNG NEEDS a volume spike to get traders to chase it in to Stage 2 "Mark Up", I don't know if this might be part of the process, but it seems whichever algo is responsible and the rumor is Knight Capital, it looks like they may have set the trade up yesterday to profit from it today-we are talking about thousands of trades executed per second.

From NANEX, their chart of UNG this morning showing the algo activity...

 NANEX also confirmed some very big and strange trade in ES yesterday 3 seconds before the market closed at 4 pm, if I have time I'll dig that story up too, it will be interesting to see if this volume shock helps or hurts UNG. As of right now, I can't imagine that this is anything more than an algo executing super fast trades, false bids/asks, etc to make some quick money.

As for UNG...

 Here's the daily volume, if this increases and goes green, that might be the mark up signal traders look for as they run their volume scans, few will realize that it's algos and rather assume it's smart money.

 Here's some context of the last week+ on a 5 min chart, look at the volume this a.m.

 Here's the actual volume, at this size they only need to make fractions of a penny on the number of trades that went through to make a killing, maybe one day the SEC will do something about this non-sense.

 The UNG 1 min chart shows a positive divergence from 12 yesterday nearly to the close, if shares were sold at the top of the range, they made a good chunk of extra money.

 Here's the 3 min chart which clearly shows the algos buying at the lows and selling at the highs and very quickly.

I'm not sure if it means anything yet or not, but the 5 min chart is looking more positive since this started.