JT, (NYSE TICK)
What do you think about the NYSE TICK the last couple of days? I have not seen such consistently high program buying since the Nov 2004 election. Watching the TICK today during the mid-afternoon sell off that tested the open, reminded me of a Jesse Livermore story. I call it a "sugar sell program" because in the JL book I read, he talks about a big money manager getting a tip that sugar is about to go to the moon, so the guy calls his order taker into the office and tells him to sell 10,000 at the market. The guy comes back with the fill and a fresh quote, sugar is still stable, so he gives him another sell order to be filled at the market. The guy comes back again with his fill and a fresh quote, and sugar is still stable. This time the big money manager gives him the buy to cover order, and buys something like 10 times the amount he was just short. When I see a little sell program in the mid afternoon time frame, usually around 2pm, I always think of it as being the "sugar sell", or let's just test the market, and see what it is made of. All the best, Darris. |
