ES down hard last night..and then..

Discussion in 'Trading' started by PohPoh, Jun 29, 2007.

  1. what the hell happened??
    They find a car bomb and the market rallies??
     
  2. Buy first...ask questions later...
     
  3. Reference market action following the July 7th, 2005 London bombings.

    MDT
     
  4. I am now flat...Got out starting at 9:21.
     
  5. Chood

    Chood

    Equities rise if interest rates fall. You can figure out the rest.
     
  6. Yeah, but that was after an attack had actually taken place, not a foiled one..
     
  7. Six of one...half dozen of another. These events, if outside the U.S. borders, are treated as "reaction" opportunities. Same could be said for the opposite events...ie: Bin Laden killed or captured. Would you BUY or SELL the reaction to this event?

    MDT
     
  8. ahh, i get it..it's called a headfake...Ya got me ES!!
     
  9. Well, your theory sucks..
    there is no correlation..
     
  10. Chood

    Chood

    You may be right. It could be a wives' tale. However, in this situation, I surmised -- reluctantly because it is an unhappy thought -- that pricing algorithms boost equities according to the likelihood of a serious attack that leads to big rate cuts. Guesswork. You have another explanation?
     
    #10     Jun 29, 2007