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"M. Simms" wrote:
>
> Let's remember that Wednesday's action in ND/NQ0Z was similar to this......
> technically with the after hours market showing it up even more,
> there was a 10 PERCENT move in these markets in a matter of HOURS
> (2970@x:30 -> 3280@xx:00pm)
>
> Used to take a few MONTHS for that kind of move.
Yeah, the future ain't what is used to be.
Monte
>
> -----Original Message-----
> From: KIMBOLEGSA@xxxxxxx [mailto:KIMBOLEGSA@xxxxxxx]
> Sent: Thursday, October 26, 2000 8:55 PM
> To: gm@xxxxxxxxxxxxx
> Cc: Omega-list
> Subject: Re: Limit Down Bounce
>
> In a message dated 10/26/2000 11:02:44 AM Central Daylight Time,
> gm@xxxxxxxxxxxxx writes:
>
> << Now, having written that, I'm ready for anyone's war story that proves me
> wrong - how a trader made a million $ in a couple of minutes in a limit
> market.
> >>
>
> Gerald,
>
> There were no limits in 1987 but I believe Lewis Borsellino did achieve the
> feat you describe in less than 1 minute. The words that follow are his - not
> mine:
>
> "I've told this story dozens of time, but the memory has never ceased to
> have
> an impact on me. I was out of the country on Black Monday of the Crash of
> 1987. In fact, I wasn't able to get back to the trading pit until Tuesday
> afternoon (even though I flew standby on the Concorde). I made six-figure
> profits on Tuesday afternoon and Wednesday. But that all paled in comparison
> to what happened on Thursday.
>
> Before trading began, the pit was tense. The brokers, I noticed, were
> especially nervous. Having been a broker in my early days, I could read
> their
> body language clearly. They were acting as if they had a large order to
> fill.
> Just before the bell rings, brokers start to make their offers. A broker
> offered to sell S&Ps 4.00 points lower. (In the pit we'd think of that as
> 400
> points lower.) Then another broker, this time from Shearson, said he was
> 10.00 lower. (Remember this was 1987, and we didn't have any limits to act
> as
> brakes on a sharply falling market.) This was unbelievable, I thought!
> Within
> seconds we were already 10.00 points down. As a local, I wondered just how
> far down this market would go.
>
> "I'm 20.00 lower," I yelled out.
>
> A Shearson broker was lower still - 30.00 points lower. I said I was 40.00
> points lower. The Shearson broker shot back that he was 50.00 lower.
>
> S&Ps opened 56.00 points lower. In the midst of this freefall, I knew it had
> to be the bottom. I turned buyer. I bought 150 contracts from a broker
> behind
> me and sold them two seconds later for 20.00 points higher. I walked out of
> the pit with a $1.3 million profit made in less than a minute. I went into
> the bathroom and threw up. As much as I had made on that one trade, I could
> have lost if the market had turned against me."
>
> Rgds,
>
> Kim
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