What the heck just happened

Discussion in 'Index Futures' started by Rickshaw Man, Jun 23, 2005.

  1. maybe the CBOT members or officals that would
    rule on this are too busy planning how to spend
    their millions on the upcoming IPO proposal
    than keep an orderly market (?)

    how the heck do they come up with a 250 no bust
    tick range anyway?

    I wonder who in the PIT trading the big DOW
    was able to scoop some e mini YM up ...
    perhaps it was almost impossible to scoop
    some up ?

    open outcry big DOW

    10425 low print at 3:28 pm EST

    mini e dow ( YM )

    10294 low print at 3:28 pm EST

    :confused:
     
    #31     Jun 23, 2005
  2. maybe tomm the CBOT will show time and sales

    for the period of 3:25-3:30 pm EST

    if anyone on ET has accurate T+S from smoe other
    data vendor .. I would be curious how
    quickly the YM book was wiped out and then
    bids came back in.

    ps ... I had no position at the time in YM

    :(
     
    #32     Jun 23, 2005
  3. is the DIA ( ETF ) is pegged to the

    YM rather than the BIG DOW ?

    could the YM dump have been caused by

    some DIA ( ETF ) trades ?

    maybe since they are so closely "arb" 'd

    time and sales of DIA ( ETF ) at that time
    would show if the tail was wagging the dog
    or vice-versa

    ps ... what 's the real low today in DIA ( ETF )

    102.69 , 103.13 , 104.05 or another # ?

    :p
     
    #33     Jun 23, 2005
  4. There were no bids. All the way down to 10300. That was the problem. I have seen several fat-fingers before, but this one looked nothing like them.

    I was searching for a bid to hit and nothing. Not only this, but as I scrambled to sweep to get out my offers remained in the book and were getting lifted 60+ points up and then I would get hit below again. I normally would have lost approx. 900 points, but I lost 408 because of that. Really weird.
     
    #34     Jun 23, 2005
  5. why did you not cancel all of your orders in the YM book ? ( maybe this is some sort of strategy
    you automated for scalping )?

    or why not hedge with ES ?

    in anycase ...its a good thing
    these spike / dumps do not happen
    that often ...
     
    #35     Jun 23, 2005
  6. frugi

    frugi

    A tiny bit of the log...what a weird minute. Would love to see a 1 tick chart, but my data's only in 1 min format.
     
    #36     Jun 23, 2005
  7. The offers that got filled on the way down where attempts to hit the bid. Those offers probably cut my losses in half. I didn't panic. I was simply trying to find someone to trade with. :)

    I don't automate strategies. Wouldn't know where to start.

    I didn't hedge because the ES didn't move at all for those 20 seconds or so. I could have sold a bunch of ES, but it made more sense to just get out.

    I think the biggest mistake I made was to get on the phone with risk management and the exchange to find out what my accounts were doing (was concerned that someone else in the group had gotten caught with bigger size in this). I think had I focused on the movement afterwards, I would have quickly made back that money. There was plenty of opportunity there to trade. This dump caused the market to loosen up and provided a great environment for me to scalp. By the time I got back to trading, it was about 12 minutes to cash close unfortunately. Relatively speaking, my own loss was not bad. I am able to make that money back fairly quickly if we have a morning tomorrow like we did today.

    The frustrating part is that those points got taken so close to the close of markets and I didn't even have a chance to trade much to lose that money. If I lose 400+ points in the YM, I would like to do it fighting and learning something on the way down. :)
     
    #37     Jun 23, 2005

  8. Man I don't see how you did that, I was sitting their scratching my head thinking something was wrong with my internet connection. My hats off to you pal great scalping.
     
    #38     Jun 23, 2005
  9. Notice a build in volume seconds before the crash. IMO someone knew is was coming.
     
    #39     Jun 23, 2005
  10. frugi

    frugi

    Thanks Rickshaw Man. :) I deleted the post you quoted cause it looked like I was showing off and was kinda pointless (in case anyone is confused). More luck than judgement on my part anyway, to be honest. I usually trade simple setups: this sort of gung ho thing isn't my cup of tea. But when I saw that ES/NQ hadn't budged on the YM drop and the price was racing back up I just stuck in a market order or two and got rid of them after a few seconds as the P/L looked like a gift A useful slice of education, in the sense that I must be more aware of the downside possibilites of such a sudden spike. Certainly nothing to gloat over, that must have hurt a few folks.

    Your chart is just what I was looking for too, thanks man.
     
    #40     Jun 23, 2005