Loading ...Some great quotes from Jesse about ’87…but it wasn’t S&P Futures that Greenspan bt, it was Value Line, on Tuesday 20 Oct, the day after the crash.
The Value Line Mkt hardly traded…but it had No Limit…All the other Stock Futures were called Limit Down on Tuesday 20 Oct, having closed Limit Down on Monday 19 Oct..They all then opened Limit Down and Pools started building at Limit Down….The Value Line opened way down and was soon calling another Limit Down for Wednesday on the likes of the S&P…..hence real panic started developing…like total terror.
Then out of nowhere a mystery trader walked into the Value Line Pit, who none of the other traders knew and this being a small pit, they all knew each other really well. The Mystery Trader then starts buying every offer in the Value Line pit, soon he bids it above the equivalent of the likes of the S&P limit, providing an Arb, where u can sell Value line and buy S&P…still he keeps buying, as Pools soon disappear in the S&P etc and then suddenly the Limit Down pools are gone and all Index futures are off limit and rallying fast.
Monday 19 Oct S&P futures closed down over 20 %, on Tuesday they closed up 5.3 % and on 21 Oct up 9 %…Who that mystery broker was no-one has ever said…but as Jesse says, that Day the scum were born.