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Non-Tech : The Critical Investing Workshop -- Ignore unavailable to you. Want to Upgrade?

To: JohnG who wrote (14260)	4/16/2000 10:24:00 PM
From: bela_ghoulashi	Read Replies (3) \| Respond to of 35685

A post from Raging Bull, via Yahoo: Crash of 1987 - How it ended? by: dr_cksg_promoter 4/16/00 10:04 pm Msg: 26495 of 26498 I found this over on Raging Bull - a nice little story - thought you guys might be interested. >>>>>>CRASH OF 1987- READ HOW IT ENDED! FROM AN INSIDER.... Situation today is slightly different of course! It was Tuesday morning and the DOW was down close to another 200 points. That night several large brokerage house senior partners had a meeting and decided to take action. It was well publicized on CNBC after it took place. They would go to select posts where key stocks were traded and start buying at the market. No names mentioned , but one firm had 3 seats on the NYSE two were in daily use. One was in the name of a senior well respected partner, who just liked having his own seat. He could well afford it. He would sometimes eat lunch in the members only resturant at the NYSE. He also would get his haircut at the members only barbershop. Once and a while he would go on the floor and visit with old friends, but he never carried an order pad and had not executed an order in years. That morning he went on the floor wearing his old tan jacket that many floor brokers and clerks wore back then. His jacket pocket had a pen and pencil holder full of pens. He had his order pad in hand. He looked like he was ready for a day of order filling. Although he carried only one order. At the time I believe IBM was traded at post 11. For the first 45 minutes he just stood by the firms order clerk in the companies booth which is located all along the walls of the NYSE along with all the other booths of all the other firms. He watched the companies clerk taking sell orders in droves with an ocasional buy order. At a given time all the floor brokers whos firms were in the deal headed for their assigned post where the stocks they had orders in traded. Our one broker headed for his which was Ibm. Upon arriving the crowd was thick and trading was heavy with a downward bias. When he entered the crown all the other members knew him and his history as a member. The crowd went silent he said to the specialist in floor broker lingo, how is it. The specialist replied 1/4 to 1/2 100 bid for 50,000 offered. Our man said I'll take it all. There were floor traders in the crowd many short not trading just watching. There was silence for a moment which seemed like forever. Then with a single roar the traders and brokers with Not Held orders started falling all over each other buying. Some covering shorts and going long and some just going long. The action at the other posts was simular, only not as dramatic. Whats the moral of the story, during the hight of the crash this would not have worked, but the selling now was pointless and harmful it had been over done to an extreme. The market was looking for any excuse to stop the carnage. I believe Monday is 1987 only it's a day after the crash it's Tuesday morning, and the market wants to rally. The big brokerages have the cash and the key stocks on the NASDAQ are easy to manipulate and the NASDAQ futures are even more easy. Once again the big brokerage know it is now very harmful to go any lower they have the power to stop this Monday morning and will. They only have to Rally 5 or 6 key NASDAQ stocks. By the way when the correction on the Dow turned into a market crash the Dow WAS AT 2280 IT GOT AS LOW AS 1650 THE BEARS WERE SAYING BREAKING 1000 WAS A GIMEE. Some predicted worse I heard a low called for DOW of 550. In one week it was back to 2280 exactly were it was before the crash began. <<<<<<<<<<<<<<