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I could not stay away, my punishment will be to go to floor traders
anonymous meeting tonight. Martini i think these days it is Coke and not
the KO kind. Reminds me of a story where a broker call a customer and gets
him to buy say 1000 shares of XYZ at 7. Calls back another day and tells
him why he should buy more. Price is now 10, he does. Next call he buys
more at 14. And so on and so on. The stock gets to 30. The customer
calls the broker and says I want to sell. The broker says "TO WHO"?
If anybody has enough money they can move a quiet or thin market for the
short period of time, say intraday. But equilibrium
will come into play at some point. Who do they sell their position to? Do
not assume that because they pushed the market to a certain point that
there are going to be suckers waiting to bail them out, get real. I have
been a trader for two mutual fund companies and it does not work in stocks
and I doubt very much if it will work in commodities. If you can show me
proof that it does I will listen.
Norman E.
Don Roos wrote:
> <<**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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