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<<**HOW** do the floor traders "take the market" anywhere?>>
You can hear it happen all the time on LOS Squawk reporting of the
spoos, especially during the long, quiet midsession, and also near prior
highs or lows, when the pit is quiet. A local will bid 2 on a couple
cars when the ask is 1 and a half. When the market is quiet, this will
tip the balance temporarily, especially near prior highs or lows so that
stops are hit with just a few contracts risk for the piranha. They
frequently "push" it whichever way they want (the word is used
frequently on LOS), especially a "big" local (able to control 150-300
cars at a time, according to LOS). These "A" locals are followed by the
others very closely (they can have a 1 million $ swing in equity in a
day), so others follow the lead of the "A" and a move by one of these is
like a Michael Jordan fake. He then has enough contracts available to
him to reverse. The others see this, and we have a fake out move with
all the stops busted. When "paper" is trading (the big futures
commercial brokers), the locals are much less likely to push a position
or try to bust stops, knowing the "paper" can take them to the
cleaners. But when NY is at lunch (which must be a 3-4 martini affair
lasting over 2 hrs, often), then the piranha have sway, and we had
better be careful.
Can you tell, there is no love lost for these characters, on my part?
Don
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