When discussing real buyers versus traders, I would put locals in the category of traders. Locals aren't much of a force any more, most of the trading I try to separate out from "real buying" takes place on desks. Seems like every time I tune in, they are carrying on about how the pit is three quarters empty.


Air pocket is a term they love in Chicago to refer to when no offsetting orders turn up for another couple points. The opposite would be if there were bids, but sellers overwhelmed them, chewing through more and more every tick along the way. Really, it is all air pockets lately, and instead of leaning on orders in the pit, locals lean on the cash ticker, and come in when the premium gets low enough out of line.


I didn't even look at any volume numbers or anything, but today was moderately interesting. Fridays are always moderately interesting. Course, I like to trade on the Friday after Thanksgiving. I guess the locals figured nothing major was going to happen, so they'd sit it out. Somebody has to sit it out and, since the more mechanical/screen-based traders aren't going to, the locals figure why lose money together?


I think a thin market is easier to read, there aren't so many crosscurrents. Hopefully, everybody else goes home, and I can deduce the pockets pretty clearly.


eLROY