Re: [RT] HEAVY BLK ACTIVITY ON QQQ'S YESTERDAY... I may have posted this yesterday.., RealTraders Email List Archive

From: Norman Winski To: realtraders@xxxxxxxxxxxxxxx Sent: Saturday, October 13, 2001 2:56 PM Subject: Re: [RT] HEAVY BLK ACTIVITY ON QQQ'S YESTERDAY... I may have posted this yesterday.. 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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From: Ira Tunik To: 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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From: Ira Tunik To: 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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From: Ira Tunik To: 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 -------------------------------------------------------------------------------- 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 10/11 DJ PRESS RELEASE: AMEX To Trade Nasdaq-100 Index Options 10/11 DJ =DJ Options Report: Amex To Trade Nasdaq Index Options 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 1,000,000 Shrs At 34.16 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 466,000 Shrs At 34.30 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 350,000 Shrs At 34.35 10/11 DJ DJ MARKET TALK: Nothing Good Lasts Forever 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 750,000 Shrs At 34.48 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 350,000 Shrs At 33.85 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 644,800 Shrs At 33.77 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 300,000 Shrs At 33.87 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 300,000 Shrs At 33.97 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 375,000 Shrs At 34.15 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 775,000 Shrs At 34.14 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 300,000 Shrs At 33.90 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 600,000 Shrs At 33.95 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 300,000 Shrs At 33.97 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 300,000 Shrs At 33.69 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 400,000 Shrs At 33.80 10/11 DJ DJ NASDAQ-100 Index (QQQ) Block: 527,900 Shrs At 33.20 10/10 RT U.S. stocks press higher on upbeat forecasts To unsubscribe from this group, send an email to: realtraders-unsubscribe@xxxxxxxxxxxxxxx Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. To unsubscribe from this group, send an email to: realtraders-unsubscribe@xxxxxxxxxxxxxxx Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. To unsubscribe from this group, send an email to: realtraders-unsubscribe@xxxxxxxxxxxxxxx Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. To unsubscribe from this group, send an email to: realtraders-unsubscribe@xxxxxxxxxxxxxxx Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. To unsubscribe from this group, send an email to: realtraders-unsubscribe@xxxxxxxxxxxxxxx Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. To unsubscribe from this group, send an email to: realtraders-unsubscribe@xxxxxxxxxxxxxxx Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. To unsubscribe from this group, send an email to: realtraders-unsubscribe@xxxxxxxxxxxxxxx Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service. Yahoo! Groups Sponsor To unsubscribe from this group, send an email to: realtraders-unsubscribe@xxxxxxxxxxxxxxx Your use of Yahoo! Groups is subject to the Yahoo! Terms of Service.