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Major buy/sell programs always kick the a/d issues and/or a/d volume into
high gear - today's sell program at 1430 (Chicago) was a excellent example
of the arbitrage effect. Footprint I am referring to, where major reversal
has taken place after a major sell-off without significant change in a/d
issues and a/d volume, is a different animal and something not seen in
normal market reversals. Incidentally, the Fed is known to intervene in the
S&P and the CFTC refuses to identify how Fed positions are classified in COT
reports.
-----Original Message-----
From: Proffittak@xxxxxxx <Proffittak@xxxxxxx>
To: eadamy@xxxxxxxxxx <eadamy@xxxxxxxxxx>
Cc: realtraders@xxxxxxxxxxxxxx <realtraders@xxxxxxxxxxxxxx>
Date: Wednesday, October 14, 1998 2:44 PM
Subject: Re: sp500
>In a message dated 98-10-14 16:18:24 EDT, you write:
>
><< IMHO, the Fed's been getting practice - I've seen at least 4 days since
>Sept
> 1 where the Fed's footprints appear to be all over the intraday charts.
When
> the spoo runs up 30 points from a pivot low in an hour with zilch change
in
> a/d issues and a/d volume, it's a reasonable bet that the Fed's been
> supporting the market by buying futures - far cheaper/easier to do than
> buying stocks. I think this is intended to keep the shorts from getting
too
> aggressive.
>
> Earl >>
>hi earl this are just buy programs
>we first buy ge msft etc calls then we buy the futures then we buy
the
>stocks
>(lifting sp avrage 7-10 points)
>then sell calls sell the futures and then sell the stocks
>so money is made on
>A: calls
>b: stocks
>c: futures
>capital reqired 50-100mill
>MONEY MAKES MORE MONEY
>Ben
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