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Ira,
Back in the early 80s when Ney was actively
promoting on the stock market channel, one day he turned his "the floor people
are stealing your money" theory on the CBOE, saying that the floor traders were
conspiring to take the public's money. He went on to twist the truth
by saying that the brokers on the CBOE were taking the other side of the
public's trades. Of course, this is impossible, because market makers and
brokers were strictly separated in function and never the twain met. It
was obvious that he didn't have a clue as to how the CBOE floor operated. So
after blasting the CBOE and falsely characterizing how the CBOE floor works, the
CBOE responded by publicly offering Richard Ney an all expense
paid trip to the CBOE floor, at his convenience, so he could learn how
it really worked. Mr. Ney declined. I
think that says it all.
Cheers,Norman
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Ira Tunik
To: <A title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Saturday, October 13, 2001 10:06
AM
Subject: Re: [RT] HEAVY BLK ACTIVITY ON
QQQ'S YESTERDAY... I may have posted this yesterday..
Richard Ney should have remained an actor. Mrs. Miniver
was the only work he has done that rated comment.
Dorothy Carter wrote:
I agree
specialists are not all knowing and they are not always the other side
of the trade... However If I can see a set up which has the earmark of
them selling longs and setting up their book short....... They are smart
money....people who have
studied this activity for yrs.. ie Richard Ney would indicate that the
circumstances and timing of these QQQ blks are most probably as I
suggested... specialist selling longs he was forced to buy on the way down
and then setting up shorts to ride on the way down....... They are a
profit center.... not just there to take the other side of the trade.
If their only purpose was to provided an orderly market.. the minimum that
they have to take 100 shs before they can lower the price of the
next trade would have long ago been changed to at least 1000 shs in this
market place where even 1000 shs is by many standards an odd lot. In
order to call a block desk at a brokerage house many require 5000 shs
or more... So. I post this info from my
experience... and it does take some time to get a feel for it.. use it if
you find it worthwhile .... JJJ
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Ira Tunik
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Saturday, October 13, 2001 2:03
AM
Subject: Re: [RT] HEAVY BLK ACTIVITY
ON QQQ'S YESTERDAY... I may have posted this yesterday.. There
seems to be this belief that the specialist is all knowing and all seeing
and can tell better then anyone else where the market is going.
There also seems to be the assumption that the specialist can take in
hundreds of thousands of shares with an inexhaustible bank. These
are false assumptions. The edge that the specialist has is
that he has the book and knows where the orders are. He doesn't know
that they will still be there if price gets to those levels because the
order can be canceled. He is supposed to make an orderly market,
when he can. When not, there are gaps down or up, or a halt in
trading until orders can be matched. The other edge that the
specialist has is that he can participate in large block trades. Say
a mutual fund wants to sell 500,000 shares of xxx stock. The
existing price is $55. He can search for the other side of that
trade or he can look down in his book, add up all the shares to buy below
the current price until they add up to the 500,000 shares for sale.
He may tell the seller that he wants to participate in the buy up to
35,000 shares. This is agreed upon. The specialist then sells the
first 35,000 shares in his book and takes all of the shares for sale up to
the 500,000. The cross might be at $54 or at $49 which price has
been agreed upon before hand. But there will be a orderly march down there
as the specialist knocks down the shares he is about to buy back. I
doubt that any specialist is going to take in a couple million shares of
QQQ in the hopes of a rally because he can't move the market for more then
a couple of minutes when the market is very thin. Especially in the
QQQ which are used buy every hedge fund or hedger as a vehicle.
There was one exception that I heard of. That was in 1987 when many
of the specialists were broke or negative and the government told the
banks to offer the specialists unlimited credit so that they could
stabilize the markets. It didn't help a certain bank in Chicago that
went belly up because of all those very smart market makers that went
broke. Remember that the market makers in stocks or options
and the specialists are taking the other side of everyone else's
trade. They are not instigating any of the trades. They are
accepting bids or offers and accommodating the public when there is
no one else there.
Dorothy Carter wrote:
There is
no way to know for 100% unless you can see specialist book.. but when I
see this many blks clustered together it feels to me like a major mutual
fund buying and the specialist selling to them... It doesn't look to me
timing wise after a big upmove off of recent lows that we would be
seeing a mutual fund that would be that savy or short term oriented to
sell a long position here... so that tells me it is most probably
specialist selling what he had to buy on way down or setting up
shorts that they ride down again.... There is obviously two sides to
each blk and the specialist is the smart $$$So if I'm reading this
correctly.... it is distribution by specialists who had to buy on way
down starting on Sept 17th and lower.. also these levels are back
to Apr lows.. so if some institution bot at Apr lows rode them up then
got caught on way down would have sold Sept 10th or Sept 17th and the
specialist most probably took other side... I can tell you
that there were even more blks on QQQs, SPY, MDY etc on Sept 17 -19th...
so I'd guess as market improved and got everyone bulled up that
specialilst is unloading...
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----- Original Message -----
<DIV
style="BACKGROUND: #e4e4e4; FONT: 10pt arial; font-color: black">From:
Ira
Tunik
To: <A
title=realtraders@xxxxxxxxxxxxxxx
href="mailto:realtraders@xxxxxxxxxxxxxxx";>realtraders@xxxxxxxxxxxxxxx
Sent: Friday, October 12, 2001
5:18 PM
Subject: Re: [RT] HEAVY BLK
ACTIVITY ON QQQ'S YESTERDAY... I may have posted this
yesterday.. Looks like short covering to me. How much
of took place on up ticks and how much on down ticks. that would
tell a different story.
Dorothy Carter wrote:
BELOW SEE SERIES OF BLOCK
TRADES ON QQQs yesterday.... THIS IS HEAVY.. NOT NORMALBLK
ACTIVITY....opn QQQs <FONT
size=-1>--------------------------------------------------------------------------------
7:48 RT U.S. stocks
seen little changed to slightly higher at open
10/11 DJ DJ NASDAQ-100
Index (QQQ) Block: 400,000 Shrs At 34.36 <FONT
face=Quotrone> 10/11 DJ PRESS RELEASE: AMEX To
Trade Nasdaq-100 Index Options <FONT
face=Quotrone> 10/11 DJ =DJ Options Report: Amex
To Trade Nasdaq Index Options <FONT
face=Quotrone> 10/11 DJ DJ NASDAQ-100 Index (QQQ)
Block: 1,000,000 Shrs At 34.16 <FONT
face=Quotrone> 10/11 DJ DJ NASDAQ-100 Index (QQQ)
Block: 466,000 Shrs At 34.30 <FONT
face=Quotrone> 10/11 DJ DJ NASDAQ-100 Index (QQQ)
Block: 350,000 Shrs At 34.35 <FONT
face=Quotrone> 10/11 DJ DJ MARKET TALK: Nothing
Good Lasts Forever <FONT
size=-1> 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 750,000 Shrs
At 34.48 <FONT
size=-1> 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 350,000 Shrs
At 33.85 <FONT
size=-1> 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 644,800 Shrs
At 33.77 <FONT
size=-1> 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 300,000 Shrs
At 33.87 <FONT
size=-1> 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 300,000 Shrs
At 33.97 <FONT
size=-1> 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 375,000 Shrs
At 34.15 <FONT
size=-1> 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 775,000 Shrs
At 34.14 <FONT
size=-1> 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 300,000 Shrs
At 33.90 <FONT
size=-1> 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 600,000 Shrs
At 33.95 <FONT
size=-1> 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 300,000 Shrs
At 33.97 <FONT
size=-1> 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 300,000 Shrs
At 33.69 <FONT
size=-1> 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 400,000 Shrs
At 33.80 <FONT
size=-1> 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 527,900 Shrs
At 33.20 <FONT
size=-1> 10/10 RT U.S. stocks press higher on upbeat
forecasts
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