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Strategies & Market Trends : Waiting for the big Kahuna

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To: Follies who wrote (19675)6/3/1998 3:06:00 AM
From: ratan lal  Read Replies (1) of 94695
 
dale

The SPX dropped 5.50 points in less than five minutes. It was one of
the fastest drops I have seen. It was lead by the futures and the futures sold off in
probably 2 minutes and the index (based on the stocks sold by
programs/arbitrageurs) followed.


How would you interpret this event?

Did the arbs first sell the sp8m, then turn around and sell the stocks in spx. Then immediately buy back the sp8m and then buy back the stocks since both sp8m and the stocks recovered almost immediately.

Do you see any evil plans, manipulation in this event?

ratan
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