Ok, which muppet sent the bonds up 20-odd ticks just before the employment report?

Discussion in 'Trading' started by Cutten, Nov 7, 2003.

  1. Cutten


    What kind of fruitcake starts buying loads of bonds a few seconds before the biggest number of the month? :eek:

    Please, keep it up whoever you are :D
  2. Foz


    I wouldn't doubt that there are traders who put stop orders in both above and below the market just before economic releases. If the market takes off up or down they hope to capture a large portion of the move.

    Unfortunately today it looks like those stops above the market were taken out and then the big move was down, so the strategy didn't work today.

    Oh, and the muppet that bought the bonds wasn't Fozzie. :)
  3. What's even more BIZARRE is the FACT that the pit-traded Dec. futures bond traded a high of 107^30 and the electronic contract traded 108^08.

    Anyone care to remark about that???

  4. Looks like a lack of liquidity a minute or two before the release. Stop manipulation at its best!

    They hit stops at yesterday pit traded high of 108^07 and yesterdays electronic night session high of 108^12, I show 108^13 print today!

    Also notice the huge jump in open interest +12,109 from the prior day. It reflects yesterday action, the largest jump in open interest for the last 10 days.

    You would think there be a lot of follow thru with the news we've had today and yesterday, in bonds and equities! Smells like a lot distribution going on in stocks!

    Good Luck to All.
  5. tntneo

    tntneo Moderator

    the book was totally empty.
    it did not take a lot of paper to drive this up (maybe including stop running, but I don't see that as a sure reason.. lack of liquidity was obvious).
    with such an empty book, noone should place an order for a target of less than 30 or 40 ticks, since we know the market can slip 10 or 20 in both direction at report time and mean nothing.