Paul Tudor Jones and 1987 crash

[billpritjr]

I re-read Market Wizards for the 88th time and observed that Paul Tudor Jones claimed to have gone big T-Bonds when he and Peter Borish "saw" the coming 1987 stock market crash.

However, unless I am missing something, a check of historical T-Bond charts for 1987-1988 do not show any huge uptrends, immediately following the Oct '87 crash.

Am I missing something?

Thanks

[BARLI]

you are really missing something here


take a look at a chart:



Bonds rallied 10 points during next 4 days right after the day of the crash

[billpritjr]

OK good, thanks. I was unable to find that online or with my charts that I use.

I wonder how short he was also. Long T-Bonds and short SP futures maybe.

His partner, Peter Borish, "called' the crash, but anyone can buy William O'Neils books, written for the average investor, and O'Neil also saw the crash coming, almost to the day.

[edward kim]

I re-read Market Wizards for the 88th time and observed that Paul Tudor Jones claimed to have gone big T-Bonds when he and Peter Borish "saw" the coming 1987 stock market crash.

However, unless I am missing something, a check of historical T-Bond charts for 1987-1988 do not show any huge uptrends, immediately following the Oct '87 crash.

Am I missing something?

Thanks

yes.

they did an analog model to the 1929 stock market and realized a high degree of correlation.

they guessed right on the liquidity infusion which is the only thing that was different.