Sun 16 Jul 2006
There’s a great story about a famous local trader at the Chicago Board of Trade (CBOT). One day, he was on the floor of the CBOT and a U.S. inflation number came out that was totally unexpected. Pure pandemonium ensued. When all the noise died down, he walked out of the pit having made $10 million and said, “By the way, what was the number?”
-Dr. John Porter, Barclays Capital as quoted in Inside the House of Money, p. 133
July 17th, 2006 at 10:14 am
I read somewhere that the “reaction to news” rather than the news itself holds valuable clues on the supply/demand backdrop.
I guess what a trader really needs is whatever info fits their style. Sounds like that trader’s style was reactionary/behavioral and he was able to pick off the fear and greed of others, a viable option if there ever was one.