CNBC tries to discredit market action by PPT

[ProfitTakgFool]

The ES futures went limit down overnight the day after MLK. The Asian markets were crashing at the time. All through the night someone, or something, was supporting the price 1 tick above the previous limit down value, after the market came off limit down. The market tested this level approximately 5 or 6 consecutive times. It was clear as day that someone was buying every single futures contract available at that price. At 8:30ET the same day the Fed lowered the discount and fed funds rate and the market soared the rest of the day.

I save my charts from each trading day but unfortunately, my chart doesn't include the data from the wee hours, just the regular trading session. I should have saved it because I'll probably never see something like that again. The PPT does exist. Anyone who thinks otherwise is very naive.

Quote from Clubber Lang:


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The PPT doesn't need to buy stock in individual companies. They step in and buy S&P futures hand over fist creating a natural squeeze and thus forcing up the markets.

 

[krazykarl]

Quote from Mecro:

You're a moron.

It was formed back in the early 1990s. It's been admitted to as well. The documents are there to prove it exists.

It does not mean all they do is buy buy buy.

Agreed with the 'moron' comment.

It's not a question of if they exist or not. I did hear from some people that they were active in October, which is why things weren't worse.

 

[Mvic]

If the PPT do not exist and have not been actively intervening in the futures the last several month my grandma is a kipper! I have been watching market action for 25 years and there is no doubt in my mind that some sort of intervention has been going on with obvious prior knowledge of Fed and Treasury actions (if I was any kind of statistical whiz and such odd could be calculated I am sure that the odds of market action unfolding as it has prior to significant Fed/treasury announcements would be astronomical), call it PPT or the Fed's/Paulson's go to broker or whatever you want. In fact if you embrace this belief and can spot the action (such as that alluded to by a previous poster) there is actually an edge to be had there.

 

[hughb]

Quote from Mecro:

You're a moron.

It was formed back in the early 1990s. It's been admitted to as well. The documents are there to prove it exists.

It does not mean all they do is buy buy buy.

You really showed him! Wow, you called him a moron! You da man! I could never have the courage to sit anonymously behind a computer and call people moron. What strength of character!

If there's a plunge protection team, howcome the market plunges? Must be in all dem documents you non-morons have.

 

[Mvic]

Quote from hughb:

You really showed him! Wow, you called him a moron! You da man! I could never have the courage to sit anonymously behind a computer and call people moron. What strength of character!

If there's a plunge protection team, howcome the market plunges? Must be in all dem documents you non-morons have.

Not all plunges are created equal

 

[ProfitTakgFool]

There absolutely is. A flee can go for a ride on an elephants back for quite a while before being blown off.

Quote from Mvic:

In fact if you embrace this belief and can spot the action (such as that alluded to by a previous poster) there is actually an edge to be had there.

 

[MKTrader]

Officially, they've never said anything about buying. And PPT is just a nickname given by the public. Do they buy? Who knows.

On the other side of the fence you have a huge number of alleged naked short transactions coming from offshore

Quote from Mecro:

You're a moron.

It was formed back in the early 1990s. It's been admitted to as well. The documents are there to prove it exists.

It does not mean all they do is buy buy buy.

 

[nkhoi]

Quote from MKTrader:

.. Do they buy? Who knows.

..

that is their job description, buying.

 

[short&naked]

Quote from Mecro:

You're a moron.

It was formed back in the early 1990s. It's been admitted to as well. The documents are there to prove it exists.

It does not mean all they do is buy buy buy.

Correct. That's when the P/E went to crazy levels that weren't even seen in 1929 (see chart). Since the 1990s the market has been manipulated like never before. It's also partially due to lots of credit being given out (which in itself could be deemed a manipulation).

As can be seen in the chart, it was only in the 90s that the P/E stayed above 20 (oversold) for a sustained amount of time (i.e. years). Every time before, when it hit a P/E of 20, the market corrected the oversold condition (in 1929 and in 1987).

 

[MKTrader]

Nope. Not officially, anyway:

http://en.wikipedia.org/wiki/Executive_Order_12631

Quote from nkhoi:

that is their job description, buying.