It has been going on for so long, TA may not apply in a real
breakdown. Someone is inhaling the whole market in e-minis,
then pushes it back with 15-25,000 contracts per minute
purchases (note that 20,000 big SP contracts = 100,000 e-minis is
the legal limit). Now, OBV is really tanking. So, that someone
must be very long, and very leveraged. Quite possibly, also
short a lot of puts. This is just peanuts, though, considering
the size of interest rates derivatives market. The whole
stock market is $10 Trillion - pocket change for JPM, who
has $45 Trillion NV interest rates derivatives. Not sure
about the size of OTC market, but it should be well into
100-s of Trillion $ |
