Conspiracy theory proven August 8, 2006. Class actions?

Discussion in 'Trading' started by Option Trader, Aug 9, 2006.

  1. This is the way I see it. I would love to hear from someone like Rearden Metal:

    The stocks were raging forward upon the Fed's announcement not to raise rates with money pouring in to the market. Suddenly, the ENTIRE market did a 180 degree turn and went raging in the other direction. Everyone trying to hitch a ride lost out. Many of those who were correctly shorting the market also conveniantly lost out, as their stop losses were triggered before the reveresal. The ones to benefit were the specialists, who I truly believe conspired based upon the sharpness of the turn, and based upon what type of market they stopped. I believe they made $5 billion in 30 minutes.
  2. emm, consipiracy?

    every fed day for the past year is like this
    large spike somewhere, then a large spike reversal, maybe even a reversal to that reversal.

    did you just land on earth? lol
  3. i think i would call that competition; a move like that was predictable and happened time and time again] there was also huge size on offer at resistance on futs [11300 ym]--i think i saw 1350lots flashin' at a point--followed by also huge transactions 300-500lots in that area....goin' short there was relatively low risk.
  4. LOL, if that's the case, then my point is that much stronger.

    Competition between retail guys and whatever the specialists fancy?

  5. its not only competition, it is also sentiment that dirives mkt upside down like that, traders read the announcement , they act and mkt reacts; after a 5min they begin digestin' and have a deeper look at what that could mean for the mkt and eventually reverse...first reaction is always instinctive.
  6. In a tug-of-war, there's pressure in both directions and some neutrality. This 180 degree reversal was too instant and drastic; it hardly had a moment of neutrality. IMO, only if the specialists conspired could such a sudden move have occurred.

  7. You bet is was a concerted effort by the specialists, I find it hard to belive that everyone changed their minds at thoese turning points.

    You mentioned the Dow Mini, their is a battle line thats been drawn resistance 11300 has become a critical area and has been rejected several times, a failure by the bulls to retake this ground may mean lower prices.

    Event day are best left alone, most execution platforms struggle to stay connected, charting platforms sputter and freeze. these days are best left alone.
  8. in favor of your arguments the move was on lite volumes.
  9. That down move yesterday was on a clear expansion of volume in the Dow Mini.
  10. i was watchin' the pits durin' the release and nobody made a move durin' the ascent; ja, u right they begun partecipatin' after the euphoria dissipated.
    #10     Aug 9, 2006