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Only takes 1 person/entity and 1 contract to move price; a famous chaotic
system was developed by a physicist (sp?) named Edward Lorenz called "The
Lorenzian Waterwheel" - it discusses the basis of your question and
demonstrates how this process works. That's why one should focus on
"probabilities" rather than "price anticipation."
You read about it in a book called "Chaos-Making a New Science" by James
Gleick via Penguin Books, p. 27., as Im sure you can also read about it via
the internet.
Mike Herron
ViperTrading
www.vipertrading.com
----- Original Message -----
From: "Brian" <blink64@xxxxxxxxx>
To: "List, Omega" <omega-list@xxxxxxxxxx>
Sent: Friday, February 15, 2002 9:04 AM
Subject: The SP this morning
>
> I heard from a friend this morning who has an SP squawk, Solomon was in
the
> SP futures this morning bidding aggressively 400 lots at a time, which
most
> likely explains the divergence between the SP and NAS this morning.
> Apparently he was primarily responible for the first rally from 1107 to
> 1112, and the second smaller one, and a couple more times around 1111.00.
> Maybe he was protecting an option position who knows. Anyway, say that we
> did succesfully keep the SP bid long enough to attract buyers. THis then
> starts a ripple effect through the markets and individual stocks start
going
> up. Is this the way it works? Can one person (group/comapny) have that
> kind of impact? Seems like there should be buyers for stocks first, which
> would move the cash which would then move the futures, at least in most
> cases. Can 1 group like this keep the SP futures bid long enough to turn
> the tide of the entire market without support from many buyers in
> inidividual stocks?
>
>
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