Yes. I have seen it in the NQ.... about 3 years ago. All trades busted. I think it happened over the summer.
FT, Just curious why you try to scalp against the trend ? On days like today I learned a long time ago that you do not fight the trend. I know it can be done and I do it often on range days but days like today will leave you pulling your hair out trying to fade the trend.
Fair question. I scalp both ways, always. I trade the direction of the trend with size and trade the bounces small. I don't have a bias other than that. I take trades based on the tape/DOM and watch for S/R. This is why I only had 6 on long. Those would only be worth a couple of ticks. I normally take multiple times the range of any given day because of this. What happened today is the outside (and low probability) risk of what I do. I don't take a position (would know how to do that and would love to learn to develop an opinion for the day) and scalp both sides but heavier on the trend side. In the last trade before that dump, I was short 18 from 10486 to 10482 and again short from 10479 to 10474 at 15:25 and 15:27 EDT. So I am in the market quite a bit and trade both sides all the time. I was long 4, 4 and then the 6 that got me in trouble. The two 4's long made money on the little bounces, but the 6 wiped all that out. This is very improbably, but it happens. I welcome this loss. I think it could have been a lot worse and I'm happy it is easily manageable.
I really didn't mean to come off as a butt. I just find it difficult to understand why traders find the need to fight the flow of the Market. Salmon I understand but not traders. If you understand my nickname, you understand how I trade. My target for the Mini Dow was 10430. So much for that, huh. Without the spike the low was 10433. Now my target is 10074 but I will keep watching support for a bottom to complete. You and I could never see eye-to-eye on trading because I would imagine you trade indicators and I trade price. Don't get me started on Jesse or Flip or Soros or Jones or anyone else. I am my own trader and call no icon king. I know you scalp the Markets and I know there are a lot of successful scalpers out there but I don't see the need. If you know the direction price is going and know the established target, taking nibbles is too much work and too stressful. I knew once the Dow completed it's bottom the end of April this year that the target to the upside was 10983. I didn't know it would take almost 2 months to complete and complete missing it's target. I knew that once the top completed yesterday afternoon that 10430 was the target on the Dow. I didn't know it would smack the target a day later. Didn't make a difference though. My philosophy is the Sh$t Happens if you let it Happen.
I don't use indicators. I use price and volume on the DOM/Tape mainly and refer to charts when needed. My comments to you were made with tongue in cheek. I'm not being serious. I know what kind of trader I am and so I don't get rocked very easily. We trade different styles and so I know better than to comment on what you do. I guess you feel that your method/style is superior, so that is great for you. I don't try to predict the market. I simply trade the current price action and every day is a new day. What happened today is riskiest part of what I do. The rest of the time, my losses are a very small fraction of what I take on my trading alone. I have certainly always been interested in how you and other guys here on ET can be confident in predicting the future. This is a skill I haven't acquired yet and is the reason I came to ET. I don't know what to look for and on what time frame. I'm certainly all ears as to why the YM should possibly go to 10074. If you have the time, you can reply here or drop me a PM with how you see it (if you don't mind). I have been happy to share whatever knowledge I have from the point of view of a scalper/tape reader to anyone who seeks knowledge, so my questions are genuine since I would like to see the logic in your predictions. I say sh$t happens because what happened today is part of the probability I am ready for in trading. You philosophy contradicts the inherent probabilities to this market. Since it didn't go my way, I call it "sh$t" and it happened. Again, my previous remarks were made with playful intent. I was just trying to get you going... I never have ill will toward anyone. My opinion remains that you might not know enough about the traders here to take make your initial comments.
You got to ask which house (MM) did not want to buy. Looks like this should have been easy money for them: Buy YM (eCBOT) between 10400/10294 and sell DJ (floor) at 10400.
Seems to me that even if you were right about this, you would want to keep quiet, no? Why not let those poor scalpers throw their money at you and provide the liquidity that you like?
I don't understand why they are not busting the trades. What recourse do you have against CBOT ? Could you sue them ? I looked at the T&S yesterday and if it 's correct there really weren't a lot of prints and bids between the 10430 and 10300 at one point the spread was 10250* 10363 ! it went from 10398 to 10356 then 10300 then 10250 in 2 seconds. It looks like a technical failure to me, what happened to all the bids in between? For those who scalp do you ever have a stop ? you could attach a stop limit far away on all your orders , couldn't you ? I don't think you would have been stopped before the plunge to 10300 though it took only 1 or two seconds to go 10300 bid from 10432.
Yes, I looked at the tape and there were 1 lots, 2 lots, 10 lots, etc gapping 50+ ticks in there. This is making my ears perk up. This is not supposed to happen. I will be speaking with Dean, VP Investigations, again today. A stop in this situation would have locked in a 900+ point loss for me in this situation. Instead of getting filled much higher, I would have been filled right at 10298 from 10470. I'm glad, in this case, I didn't have any set.