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At 10:38 AM -0400 5/12/99, Don Roos wrote:
>I hope you all slept through that one (the Rubin resignation news). 30h
>down in 4m. A good reason to always have a stop in place. If things
>are going to go wrong, they will at the worst possible time: "due to
>system problems at the cme" the cubs system went down just before the
>Rubin selloff. Not nice to have to call in an order while the mkt is
>going down like a rock. The low in the es was the same as the spoos, so
>no stop busting. They will have a hay day picking the cherries (stops
>in place) for awhile after today.
Would stops have helped?
If you were long and your stop got hit, it would have turned into a market
order to sell. Since there would have been no buyers on the way down, you
would have been filled at the bottom around 1330 for a $7500 loss per
contract.
It looks like a good example of where the only protection would have been a
standing put option.
Comments?
Bob Fulks
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