Wednesday, January 13, 2010

Fat Finger on E-Mini, Or...?

This from Zero Hedge today.

Someone allegedly made a mistake, bought and sold 200,000 ESH0 (E-MINI S&P 500 March 2010 futures) right before the market opened today. That's supposed to be the biggest trade ever on e-minis.

Not all people considered this as an inadvertent mistake, of course.

Futures traders noted a huge buy order on S&P 500 futures on a day in March 2009, right when the market started to tank further in an accelerated pace. That spike in S&P futures totally turned around the market, and the rest is history: 10-month stock market rally. Along the way, as Zero Hedge has noted on their site, there have been some peculiar trades in futures, leveraged ETFs on various indices (their favorite has been Russell 2000), options on leveraged ETFs, which turned the market around, usually to the upside.

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