to those that bought the spike today

Gordon Gekko · Jul 3, 2003

Quote from vulture:

I am going to side with the skeptics on this issue...The moment this happened, I have serious doubts that Gordon Gekko would be saying "oh great this is a wonderful opportunity to go long"...My bet is he was saying "holy shit, what the hell is happening..what is the news" like most people who saw that thing spike 12 handles lower in a minute...

ok...

going into today, i was bullish in the AM. some people saw some posts i made with #1 Trader this morning. (the thread they were in got deleted.)

the retracement that happened right before the spike was actually looking like a good long re-entry to me (this is just my opinion, i could have been wrong). so even before the spike, i was bullish.

then we had the spike which was way overdone. i mean, that down move was just so overdone with no bounce, it screamed to be bought. as someone else said, how often do you see a move like that with no bounce?! i knew one would come when the momentum stopped. especially if it was some button pressing error as it appeared to be.

so anyway, as soon as i saw the spike happening, i put on fox news. nothing really exciting was going on. then i switched to cnbc and they were talking about digital cameras or something, as someone else previously said. lol i think fox is in NYC, so obviously no nuke went off there if i was watching the broadcast.

then i looked at some other markets and they weren't moving as if the president was assassinated or anything.

put everything together and it just seemed like a good buying opportunity. you never KNOW, but i definitely do think there was more upside reward than downside risk.

Quah · Jul 3, 2003

Quote from Gordon Gekko:

how often do you see a move like that with no bounce?! i knew one would come when the momentum stopped. especially if it was some button pressing error as it appeared to be.

Did it appear to you to be a button pressing error on ES? If so, why would you trade it - knowing that button pressing errors usually get busted leaving you in a position that you probably wouldn't want to be in?

Or are you saying you had already determined the "button pressing error" was in a different market?

aphexcoil · Jul 3, 2003

Quote from Quah:

Did it appear to you to be a button pressing error on ES? If so, why would you trade it - knowing that button pressing errors usually get busted leaving you in a position that you probably wouldn't want to be in?

Or are you saying you had already determined the "button pressing error" was in a different market?

That's precisely why Nitro was already looking at the QQQ's.

Gordon Gekko · Jul 3, 2003

Quote from Quah:

Did it appear to you to be a button pressing error on ES? If so, why would you trade it - knowing that button pressing errors usually get busted leaving you in a position that you probably wouldn't want to be in?

Or are you saying you had already determined the "button pressing error" was in a different market?

first of all, i would like to say that i just started this thread because i know this stuff will probably happen again in the future and i was thinking about how to take advantage of it. i'm not at all claiming i would have traded it perfect today. it seemed to me like some error. like nitro said, you can trade another market.

Girlpower · Jul 3, 2003

Quote from Gordon Gekko:

ok...

going into today, i was bullish in the AM. some people saw some posts i made with #1 Trader this morning. (the thread they were in got deleted.)

the retracement that happened right before the spike was actually looking like a good long re-entry to me (this is just my opinion, i could have been wrong). so even before the spike, i was bullish.

then we had the spike which was way overdone. i mean, that down move was just so overdone with no bounce, it screamed to be bought. as someone else said, how often do you see a move like that with no bounce?! i knew one would come when the momentum stopped. especially if it was some button pressing error as it appeared to be.

so anyway, as soon as i saw the spike happening, i put on fox news. nothing really exciting was going on. then i switched to cnbc and they were talking about digital cameras or something, as someone else previously said. lol i think fox is in NYC, so obviously no nuke went off there if i was watching the broadcast.

then i looked at some other markets and they weren't moving as if the president was assassinated or anything.

put everything together and it just seemed like a good buying opportunity. you never KNOW, but i definitely do think there was more upside reward than downside risk.

Wow Gordon, Your couple of minutes must have been an awful lot longer than mine. Either that or you think and act about 30 times faster than I do. By the time I'd finished thinking OMG what's going on and managed to get to the send button it was already well on the way back up again. And you had time to go check a couple of TV stations as well.

I'm amazed. It took me all my time to work out where we actually were and get past the initial totally stunned lack of reaction. I managed to pull up a chart of qqq but that was it.

Natalie

Girlpower · Jul 3, 2003

I remember sitting in front of my machine that day trading FTSE as it went into meltdown suddenly and without warning. I learned a lesson about meltdown that day i.e. not to try and buy into a bounce. 600 points on YM with no pause on the way looked awfully similar for a short while...

Natalie

Gordon Gekko · Jul 3, 2003

Quote from Girlpower:

Wow Gordon, Your couple of minutes must have been an awful lot longer than mine. Either that or you think and act about 30 times faster than I do.

well i guess i do then. whenever i see price move that fast, i always check to see if there's news. i had also checked an economic calendar before the open and i knew there wasn't anything at 10:30 EST.

i saw price tanking and the tv was already on with the remote right next to me. fox news was on, saw nothing happening. pressed 1 button on the remote to check cnbc, nothing going on. i already had the charts up and was sitting at my computer. it took me about 10 seconds to check the news. the down move lasted minutes. there was plenty of time, especially if you were prepared.

and as i said, the point of this thread is to prepare for when it happens again. i'm not at all saying everyone should play the spikes. i just wanted to look into it, read what other people did today, and consider what is possible.

bdixon619 · Jul 3, 2003

Gordon.

then we had the spike which was way overdone. i mean, that down move was just so overdone with no bounce, it screamed to be bought. as someone else said, how often do you see a move like that with no bounce?! i knew one would come when the momentum stopped. especially if it was some button pressing error as it appeared to be.

There was nothing overdone about it, this trade was statistically 1 standard deviation wide. Please see this trader's first sell and then the buy, notice the prices.

http://www.elitetrader.com/vb/attachment.php?s=&postid=285737

I was trading NQ today. Here is my evaluation of the action on NQ for Wednesday:
Mode--1237.50
Median--1237.50
Mean--1237.50
1 Std Dev from 1232.50 to 1242.50. These are the results of the few simple tests mentioned. Your results may differ from mine due to time frame or whatever. Some of these issues were discussed at length in chat. If you want to increase your ability to trade profitably, then many sets of eyes can multiply your market awareness. Yes, you may still get information overload, as Natalie admitted, but; when you see others still able to function and trade the bounce as Natalie also admitted you will reinforce your conviction and might make the trade in the future.

Maybe this is your wake up call, buddy.

first of all, i would like to say that i just started this thread because i know this stuff will probably happen again in the future and i was thinking about how to take advantage of it. i'm not at all claiming i would have traded it perfect today. it seemed to me like some error. like nitro said, you can trade another market.

Well, whatever you decide, the chatters will most likely be in the chatroom, come Monday morning. See you.

Bruce

Gordon Gekko · Jul 4, 2003

i'm gonna stop replying to this thread because i don't want to beat a dead horse.

maybe "overdone" was a poor word choice. obviously there were reasons to buy or price wouldn't have shot up. some people saw something and i would tend to think those people were smart rather than stupid.

i'm gonna send u a PM.

bdixon619 · Jul 4, 2003

Quote from Gordon Gekko:

i'm gonna stop replying to this thread because i don't want to beat a dead horse.

maybe "overdone" was a poor word choice. obviously there were reasons to buy or price wouldn't have shot up. some people saw something and i would tend to think those people were smart rather than stupid.

i'm gonna send u a PM.

OK, Gordo, that's fine. One doesn't want to pummel a dead equine.

Bruce