Wednesday closing squeeze: Fat finger mistake?

Discussion in 'Trading' started by makloda, Aug 3, 2007.

  1. Saw this on Trader Tom posted on Thursday (

    "The SP500 rally last night was apparently due to an error. A US house made a mistake and bought 5400 futures when they should have bought just 54 futures. This turned all long var players, who were going to sell the close, into buyers. Since you cannot cancel MOC orders in the last 10 minutes, these var swap delta buyers had to buy back their MOC amount plus more to get the right hedge.

    This amounted to $5billion worth of fake buying, causing the Dow to rally 250 points in 20 minutes..."

    Anybody with more info or can we discard this in the "myths and legends" bin?
  2. Myths and legends bin.
  3. geez,how convenient....just when the s&p cash was at it`s 200day.....i guess this is one way for the PPT to disguise it`s syndicate...LMAO.

    i believe they blamed a sunday night 20 handle rip that was blamed on a fat finger mistake as well.funny how the fat finger mistakes always seem to happen on the buy side vs. sell side.