Replies to post #326833 on SPDR S&P 500 (SPY)

[TechniTrend]

Your guess as good as mine...

1) there is ONE algo ruling them all, from all MM working together on a common goal

I don't know

(2) this algo places trades (otherwise how it can bring the priceline up/down) on the futures market - bringing the contract price such as to clean limit & stop orders found in proximity ("targets" = price of futures contracts)

exactly

(3) That price of the index *futures*, in return instructs the MMakers (the 15 of them) into how to price the underlying basked of stocks, 500 of them. Why?

you lost me

(4) because, when S&P DowJones (a business entity, nothing to do with MMs) calculates the S&P *index* from the underlying 500 stocks (and sends the index to Reuters to stream it to stock exchanges) -> it has to match the futures price decided by the algo which is cleaning targets.

nope

(5) And all the above done every 15 seconds ... such as not leaving house-money on the table to the arbitrage players - yet another set of algos built to spot real time discrepancies between the index and the index futures.

I don't know

Look, as in any theory you put the facts together and then you formulate an explanation of those facts... If you are correct, you must see that reality (the facts) complies with your explanation.

That is what I'm exposing, day after day well before prices take the targets, they are there for everyone to see...

everyday,at any time, any stock

Otherwise you can think that prices are random... do you see any randomness in prices coming to a reset position? if you see it, fine! the idea is to use that info to trade isn't it?

When we see that reality doesn't fit, then the theory is wrong and you should keep seeking.

This is right now... as I said any time is good