Tudor Jones in 1987

Discussion in 'Trading' started by billpritjr, Oct 8, 2006.

  1. I re-read Market Wizards for the 88th time and observed that Paul Tudor Jones claimed to have gone big T-Bonds when he and Peter Borish "saw" the coming 1987 stock market crash.

    However, unless I am missing something, a check of historical T-Bond charts for 1987-1988 do not show any huge uptrends, immediately following the Oct '87 crash.

    Am I missing something?

  2. I'd say! bonds rallied 10 points on tuesday.
  3. Yep...it's called flight to quality, Mark Cook calls it divorce days, and you see it every panic in the market. It's really a short term trade.

    He also smacked the hell out of the S&P's, I believe he was selling about an hour after the open, and riding his winner all the way down.

    Great trade, once in a lifetime opportunity, right place, right trade, right time.
  4. I think he was selling a long time before the opening! He had been looking for this trade for some time; he was using 1929 as an analogue to the action in '87. This had been setting up for months.
  5. I don't have hourly bond charts (I wish I did), but I have some charts of the Dow Jones Industrial Average crash that I think are interesting. If anyone has hourly charts of gold futures and US Dollar exchange rates for the 1987 stock market crash please post them here. I want to see them.
  6. DJIA daily chart before, during and after the 1987 crash.
  7. DJIA hourly chart, 1987 crash.
  8. chisel


    Not exactly what you're looking for, but good charts nonetheless.
  9. DJIA weekly chart, 1987 crash.

  10. He may have been short prior, but he went for the juguler after the open. My research is that was his plan all along, he was taking advantage of the portfolio insurance that he knew would inevitably push the market down more.
    #10     Oct 8, 2006