insto selling ?, page-13

Brett - that is far to simplistic a view Im afraid - RBS , Citibank , Credit Suisse and Mac Bank all have minis over CDU - Unlike CFD,S the Market Makers of Minis have no incentive to trigger the stop loss positions.

The Market maker wears the loss on minis above 100% as opposed to CFD,s where they give you a margin call - Buying CDU on CFD,s you can lose far more than 100% of your outlay - Buying minis on CDU you cant lose more than your outlay

For Example - If I had a $3 strike mini on CDU that I paid $1 for when the heads were trading at $4 - say the stop loss was $3.50 and CDU fell to $2 on a dodgy JORC - I would only lose a dollar - The retail punters who owned the heads would have lost $2 and the market maker who sold the minis would be out of pocket the extra dollar not me.

Today's fall was probably enhanced by the CDUKMA,s being stoped out but that was the reaction to the fall not the action that caused the fall - A large insto selling was the problem ( IMO ) all the reds under the bed shorters and manipulation theories no longer wash with me.

No DFS ,No broker support , a budget that is under budget without saying what that budget is - sometimes things are fairly simple to explain while others look for more complex reasons to justify what is happening.

CDU is one of the least shorted stocks in the ASX200 - fact not fiction-

Bret to answer your question the majority of the outstanding Mini longs have stops in the $2.40 / $2.50 region

Cheers hOOt

Tomorrow afternoon 2pm Mac bank will post a market to buy back the outstanding CDUKMA,s we will all then be able to see how many of today's 1.4m shares traded were attributed to Macca's selling - Personally I will be surprised if its much more than 250k