dow minus 281.....apakah ini awal dari mimpi buruk ?
ataukah pentungan terakhir dari si bozz ??
mohon petunjuknya para suhu, suheng, bozz, bandar, pakar, dewa, whatever
lah.....hahahahaa........
----- Original Message -----
From: Dean Earwicker
To: obrolan-bandar@yahoogroups.com
Sent: Saturday, August 04, 2007 12:49 AM
Subject: [obrolan-bandar] Ngeshort ala Wallstreet
Reuters
Wall St shaken by late-day market surges
Friday August 3, 1:06 pm ET
By Herbert Lash
NEW YORK (Reuters) - Wall Street is getting hit by massive trading volume
late in the day, and whether it's program-driven or covering bets that went the
wrong way, expect more.
U.S. stock prices jumped in the last half hour of trading on both Wednesday
and Thursday, surprising traders as major market indexes had traded up and down
through most of the two sessions.
The late surges have surprised traders, who don't see a catalyst for the
jump. The gains may falsely indicate in easing in investor skittishness over a
tightening of credit, when in fact concerns may still abound.
"It has a lot of equity traders scratching their heads wondering what the
prompt for this has been. I don't think there was anything on the tape that
warranted it," said Michael James, senior trader at investment bank Wedbush
Morgan in Los Angeles.
Trading in exchange-traded funds, primarily those that are linked to the
benchmark Standard & Poor's 500 Index (^SPX - News), is behind the late-session
moves, said James. The ETFs, formerly Standard & Poor's Depositary Receipts,
are called spiders.
Volume in SPDR 500 ETFs (^SPY - News) set a record on Wednesday, according to
Reuters data, with about 467.7 million shares traded, more than double July's
daily average of about 189.9 million shares. Volume on Thursday was about 295
million, having steadily risen in recent months.
"For whatever reason, someone wants to cover a big short position in the
spiders in the last hour yesterday and today," James said late Thursday. "It's
not an accident."
He and other traders said the late-day rally suggested investors had bet the
market would move lower. But when prices moved up, they were forced to buy
shares to replace ones they had borrowed, a move known as short-covering.
Sudden and massive stock moves occur because more traders can easily place
orders in the marketplace than in the past, said Adam Sussman, a senior analyst
at Tabb Group, a research and advisory firm for financial markets.
Hedge funds and mutual funds have more control over their order flow than
they did five years ago because of electronic trading, said Sussman.
"If they want to flood the market at the end of the day, they can, and it
doesn't require them to call someone up and have a conversation" with a broker,
he said.
Electronic trading includes systems based on algorithms, complex mathematical
formulas that quickly assess a large number of possible trades and execute
orders in milliseconds.
Wednesday's big move -- the Dow Jones industrial average (DJI:^DJI - News)
climbed 180 points in the last 20 minutes of the session -- sparked talk a bad
trade in the futures market was behind the unexpected rally.
The Chicago Board Options Exchange and the CME Group reported no price
corrections and spokeswomen at both exchanges said there was no cancellation of
an erroneous trade.
"Yesterday's rumor was obviously that somebody had oversold an S&P futures
position and had to cover," Ted Oberhaus, manager of equity trading at Lord
Abbett & Co., said on Thursday.
A meltdown in the subprime mortgage market has caused credit to tighten and
led some investors to expect a bigger fallout than has occurred.
"We've been beaten down with this subprime and there's nothing that came down
today. That's why we rallied back," Todd Leone, head of listed trading at Cowen
& Co. in New York, said on Thursday.
Options trading on the CBOE was heavy in S&P 500 index contracts on Wednesday
and Thursday, with volume almost 50 percent higher than the daily average of
645,868 contracts in July, the exchange said.
The ratio of put options to call options was about 2 to 1. The buyer of puts
hopes prices will fall. Investors and traders like options because they are
easily bought and sold and because they provide diversification at a limited
cost.
Electronic trading is quick but can add roller-coaster-like movements in
share prices, especially just after the market's open and during the last hour
of trade.
"It's great for fast executions but it's not great for good execution.
Someday people who asked for this are going to wonder why they asked," said
Victor Pugliese, director of listed equity trading at First Albany Corp. in San
Francisco.
