Date: Wed, 2 Oct 1996 11:05:51 EDT
From: "Timothy M. Ennis" 72120.2224[AT SYMBOL GOES HERE]COMPUSERVE.COM
Subject: Re: Chinese Fire Drill
While I don't claim to know the origin of Chinese Fire Drill, I can attest to
its popular use on Wall Street in the 1980's. It was used to describe a
situation where some piece of news would cause the market to lurch violently
in one direction. Then as traders were buying at the highs a reinterprtation
of the original info would cause massive selling as traders liquidated and
tried to get short at the bottom. Finally the market would reorient itself to
unchanged prices with traders licking their wounds and counting their losses.
This type of market action was also called "pigs in space."