FED behind move on Monday ??

Discussion in 'Economics' started by Fari Hamzei, Jul 17, 2002.

  1. I have a Live call-in interview with http://MarketViews.tv tonite at 1930 PT. Subject is: whether the FED was the buyer in Chicago Futures pits on Monday when DOW was over 400 negative with less than 90 min to go in regular trading hours.

    simply click on the link above.
  2. Dustin


    Thanks, that was interesting. For those who missed it, the speaker says the move was due to a 10,000 contract buy order in S&P 500 futures pit. He also said that the buyer was either a pension fund or mutual fund, not a hedge fund. This information came from someone in the futures pit. That was important because it means the trade is not a scalp...it was a major purchase at these levels, and he expects that low to be held in the near term.
  3. On Monday afternoon, the rumor among the large SP locals, on the floor of MERC, was that it was the FED who intervened at 1340 CT.

    Section 20 of Glass-Steagel Act of 1933 strictly forbids that.

    After contacting a high level officer from another Exchange, more facts were brought up to my attention, which I shared with my traders on Tuesday on our IM and on MarketViews interview tonight.

  4. How much exposure does 10,000 contracts represent anyway.

    I mean how much money did someone "put to work" there for us non future types.

    Also with an order this big....isn't it really hard to find someone to take the otherside. I mean an order like that is usally worked for a while right?

    Seems like some of us would have heard something on a squawk.

    I was listening to xsquawk on that day...didn't hear anything about a massive order like that....seemed like the sellers dried up and then everyone just started tripping over earch other to take profits.

  5. Dustin


    The guy said the order was worked by Merrill and Morgan. The reason I was interested in hearing the interview is that I noticed in the stocks I trade that volume really didn't increase much, so the move was futures based. Also, the chart looks like nobody wanted to take the other side of the trade...huge bars.
  6. $196,880,000 at current overnight margin.

    Make 'em pretty, Chris
  7. Can't find that interview...
  8. as of July 2nd, CME requires approx. $19,700 per SP contract in initial margin.

    you add the zeros !
  9. It was a LIVE webcast....we will link it for you once its archived audio is available this weekend. Just click on our News button on top mid-day Sat. PST.
  10. merrill and morgan......smells like pimco to me.
    #10     Jul 18, 2002