"That one account is solely responsible for the current level of the S&P."

HeatOilTrader · June 30th, 2004, 7:42 pm

Received an entertaining email this afternoon regarding a suspicion that one trader or a small group is controlling the S&P... "That one account is solely responsible for the current level of the S&P" Although the trading pattern suggests collusion on the part of the CME and large institutions that make up the balance of the volume, no one has seen fit to address the illegality of this activity, other than to suggest it is currently "under investigation."I've never traded the S&P but common sense tells me that this is little more than complete rubbish.

cvz · June 30th, 2004, 8:51 pm

This theory is quite popular with Chicago floor traders right now. I guess people like to think that there is a reason deeper than market maturity for why locals don't make the money they used to.

mikebell · July 1st, 2004, 2:11 am

I does sound like BS but I've talked with some old traders who've seen it all and I've heard some stories that if someone else told me, I'd think of them as BS as well. It does seem improbable but if it is true, "Igor" will be a legend.

nazzdack · July 2nd, 2004, 4:36 am

Hmmm, interesting stuff. Maybe "The Fed Open Market Plunge Protection Fund" is for real. Maybe it's the Fidelity and/or Vanguard S&P-500 Index Fund "supporting" the market. If and when there's a surprise 50 basis point interest rate hike, that "big bid" will disappear.

daveangel · July 2nd, 2004, 4:46 am

I dont believe any one person has deep enough pockets to support the S&P. Howeevr, the lack of volatility over the last 9 months has been deeply frustrating. $/Yen and Euro/$ have bigger moves than equities.

Baltazar · July 2nd, 2004, 6:16 am

This is very interresting and as to be matched with the discussion we had about TAindeed the idea that using compulsively a model/technique seem to have an influence on the market.this is self fullfuling prophecy, not in the sense: "i told you i was right" but more in an Heisenberg fashion :"the tool used to model impact the reality of the modeled phenomena"this textB.

daveangel · July 2nd, 2004, 10:12 am

I would give this story more credence if it isn't been touted by a bunch of gold bulls.