Wild S&P spike overnight!!

[aidaweb01 10]

Hi all,

Woke up this morning (GMT) to see the S&P dipped over 60 points in the overnight session. I planning on shorting on a retracement to 8EMA this morning but am retiscent to trade now, given this mad volitility. Anyone have any idea why this tanked?

Daniel

[aidaweb01 10]

See below for reason for spike.

 

To GLOBEX Traders:

GLOBEX is currently reviewing future option trades on the equity index futures which occurred earlier today, in particular trades done between 01:01 and 01:05 Chicago time which resulted in a large number of trade cancellations in the equity index futures (NQ, YM, ER, SP, ES, ND, ZD, DD, ER2, EMD). GLOBEX has informed us that some trades will be busted but have not provided any details at this time. We will provide more information as soon as we receive an update from GLOBEX.

[thrunner 10]

Some kind of automation gone wild overnight in a large account. The quote and image are from the TS forum.

I just heard from a rep at the CME...Exact words: "One account suffered technical issues which led to this situation, which is now being reviewed." --Mike

Do you ever wonder why this business is so tough on small and new traders and so much easier for the large accounts? If you have a large account that can trade tens to hundreds of thousands of contracts at a time and your automation goes wild, the exchange will bust the trade for you. That is not going to happen with a 3 contract account. This goes to show that the large traders can jerk the market any direction at any time they want; your stops are at the mercy of their whim.

Edited January 15, 2008 by thrunner
added note

[mister ed 10]

Thanks for the info guys - I saw the spike but as I really only pay attention to the RTH I ignored it, thought it may have been a data issue or something ... difficult for those who track technical indicators through the overnight session though.

 

I wonder if I can submit my losing trades to the CME for busting, say the cat walked across the keyboard or something.

[Anonymous 11]

Thrunner;

 

Your chart reminds me of a bad acid trip I once had. LOL. Thanks for the info. You are correct about large traders having some systemic advantages.