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Read "Escape to the Futures" by Leo Melamed, Chairman of the Chicago
Mercantile Exchange and his account of the '87 crash.... :05 minutes to
meltdown and how an emergency loan kept the markets open the following
morning...........
----
Regards,
DS
Steve Schnake wrote:
>
> Whoa, Does the Fed trade stock index futures contracts??
> I thought they were suppose to control monetary policy.
>
> Steve
>
> At 01:55 PM 10/14/98 -0600, Earl Adamy wrote:
> >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
> >
> >-----Original Message-----
> >From: steven poser <swp@xxxxxxxxxx>
> >To: RealTraders Discussion Group <realtraders@xxxxxxxxxxxxxx>
> >Date: Wednesday, October 14, 1998 9:22 AM
> >Subject: Re: [Doom and Gloom Dow Industrials Forecast]
> >
> >
> >>Mitch -
> >>
> >>That is a point worth noting, but outside of this list and those that
> >>follow the astrology guys, I do not think everybody else is truly
> >>looking for the capitulation trade on Black Monday's anniversary. Though
> >>Acampora downgraded his targets, many of the big street technicians
> >>believe that we have put in a bottom for at least another month.
> >>
> >>The other thing to be aware of is that if the market does blow up by
> >>500-1000 points in a day, it will require some action from the Fed to
> >>make people stick their feet in the water. Every try catching a falling
> >>knife? People will not just jump in without a good reason. How many
> >>times have you said that you will buy when something gets to a certain
> >>level, and then did not (unless you are real disciplined or already had
> >>the trade in, or were smart enough to be short into that level).
> >>
> >>I do believe that the capitulation trade will be met with a rate cut and
> >>that a bottom will be in soon, but I would not count on the views in
> >>this forum as being universal.
> >>
> >>Steve
> >
> >
--
Douglas
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