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Strategies & Market Trends : NetCurrents NTCS

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To: Teresa Lo who wrote (88)10/1/2000 2:35:23 PM
From: Digger Sacket  Read Replies (2) of 8925
 
Hi:

Read many of your posts - very informative and helpful. Thought I might ask if anyone knows what is meant by "running the stops?"

Often for example when watching the S&P futures charts you'll see a huge spike up and a spike down immediately after a news release - say a Greenspan announcement on i rates. Many people say this is because the folks in the pits have run the stops in both directions.

I have asked futures brokers and they say that it is because a large number of orders are entered at this time and this triggers the spikes. They say that there is no "market manipulation."

Do you know if it is possible to manipulate the market by running the stops? Does this apply to only the open outcry system, or the electronic Globex as well? Anyone know?

Thanks in advance

Digger
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