Word is, the trade was NOT an error. It was a very large hedge fund sell order that Goldman worked via S&P e-mini's. Goldman Spokesman also said it was NOT an error. IMHO from my understanding of various technical trade signals and hedge fund players....the seller can only be SAC!!
Now why would SAC use the E-Minis to short the S&P? You must be sniffing something. . . That's HILARIOUS!!!
error my butt ( im trying inandlong ).....Me thinks it was no error and they are justifying the drop by saying this....could its be a conspiracy??? Harry???
It was reported to be e-mini's by the street.com but it just could as well have been OEX contracts But based on a signal I know SAC watches...I have a very good feeling it was them.
"So you are the Christ You're the great Jesus Christ Prove to me that you're divine Change my water into wine That's all you need do Then I'll know it's all true C'mon King of the Jews Jesus you just won't believe The hit you've made around here You are all we talk about You're the wonder of the year Oh what a pity If it's all a lie Still I'm sure That you can rock the cynics if you try So if you are the Christ Yes the great Jesus Christ Prove to me that you're no fool Walk across my swimming pool If you do that for me Then I'll let you go free C'mon King of the Jews I only ask what I'd ask any superstar What is it that you have got That puts you where you are? Oh, ho ho I am waiting Yes I'm a captive fan I'm dying to be shown That you are not just any man So if you are the Christ Yes the great Jesus Christ Feed my household with this bread You can do it on your head Or has something gone wrong? Jesus, why do you take so long? Aw, c'mon King of the Jews"
If they did sell in the mini, it was obviously done to spook the market lower. Think about it, if they wanted to sell a large position, they could have worked it slowly. But they didn't. They chose to dump it on the market, on the most illiquid of markets, the mini screen. The pit could have absorbed a couple hundred. It would have gone a few points lower. But that wasn't their intention. They wanted toshow their hand, send this lower and set off some stops possibly. IMO, based on the markets recovery today, we have a strong market. Will be looking for strength in the SPOOS over the next couple of days as traders bid the market up, possibly in anticipation of the covering of this large short position. Anybody know how much volume sent it lower? from T/S?
enlighten us. what indicator is it? no one's going to ruin this strategy in something as liquid as the e-mini's, so let's hear it.