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Ira wrote:
> Look what happened in 87. They stopped trading in the OEX, when that
> reopened, they stopped trading in the S&P, then they stopped trading in
> the key stocks like IBM. there was no place to hide or to cover.
NW: Ira, The Maxi contract at the CBOT stayed opened during the panic and
the low. The low
on the front month was 291.00. Given the average ratio of the DJIA to the
Maxi (futures on the Major Market Index or XMI) of 5.08, this implies that
had the NYSE stayed open, the DJIA would have
made its low print at approx. 1478.28.. Watch for 8 x 1478.28 = 11,826.24
to see if that is an important level. 7 x should now be support at
10,347.96.
Historically,
Norm
> No
> sooner did they reopen one, then they closed them again. The stock
> exchanges aren't saints either. When the blood flows, who do they look
> to save first? certainly not the public! Then government came and
> extended unlimited credit to guess who? once again, not the public. So
> the answer is when you go , go big so that the powers have to make you
> a partner, not a victim. If Vic had gone down for a Billion or two more
> then the funds had, there would have been a different solution. Ira
>
> THE DOCTOR wrote:
>
> > In spite of the fact that I work for an exchange .. it is
> > very difficult to defend the MERC on this one. He was
> > screwed. The early closing on the day the market declined
> > 500 occurred while his orders were already in the pit. His
> > broker(Refco)was going through a panicked liquidation and
> > telegraphed their intent to the entire community. By the
> > time the market reopened the next morning(at a 60% implied
> > vol)he was DOA before trading even started. In the
> > securities industry, the kind of practices that are
> > commonplace in the futures industry, would be felonies.
> >
> > Refco was, alleged, very sloppy. The only one in the
> > Chicago marketplace who didn't know what was being traded,
> > how much and anxious they were to exit would have to have
> > been someone deaf, dumb and blind. I wonder how any of us
> > would fell if we had a large short person and he whole world
> > knew we were coming to cover. Vic was one of the better
> > traders and he was _ucked royal.....sorry about the
> > expletive. Lots of individual investor who traded on those
> > two days were also hurt by the action and there were lots of
> > trade adjustments made.
> >
> > If there is a condemnation to be made, IMHO, don't close the
> > markets prematurely ... let the marketplace work.
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