Some Morgan stanley trader entered a wrong order of 5400 index futures contracts (they are supposed to buy only 54) towards the market close. This triggered a jam in the exchange n some arbitrage programme trading, as well as some variance swap players which were supposed to close their position on MOC orders (which is not cancellablle after 1540) to cover up buying index. some trader estimated the total amount of buying created by this error trade to be around 5bln usd.

1) my gut feeling a 10% correction would make more sense

2) in all prev five corrections, average 4bln foreign selling as per a UBS report. this time only 2.1bln sold.

anyway, do think market is still bullish.

1) banks are too large to fall (german gvnt alr stepped in)

2) even credit spread widens, a rate cut cld easily handle it.