Give me ONE rational explanation for Today's rally

[cunparis]

Quote from gnome:

That's the principle of the PPT... with enough money piled into the market (SP futures, specifically), you can stampede the herd.

This isn't the first time they've been accused of it, so multiply your 30 billion by 3. Now it's 90 billion. Out of a bailout package of 700 billion. I seriously doubt they'll use up 90/700 to prevent a crash.

The sellers were running out of energy for the past month. That is visible in the lower volume and all the indicators show positive divergence.

I think the PPT is just conspiracy theory. No reason to support a market at 816. much better to support it at 775 where they're sure to make aprofit.

Also, don't forget that 90 billion has to come back out of the market.

 

[gnome]

Quote from cunparis:

This isn't the first time they've been accused of it, so multiply your 30 billion by 3. Now it's 90 billion. Out of a bailout package of 700 billion. I seriously doubt they'll use up 90/700 to prevent a crash.

The sellers were running out of energy for the past month. That is visible in the lower volume and all the indicators show positive divergence.

I think the PPT is just conspiracy theory. No reason to support a market at 816. much better to support it at 775 where they're sure to make aprofit.

Also, don't forget that 90 billion has to come back out of the market.

The money used to start the stampede doesn't have to stay... once the rally gets going, they can just scale out. They accomplished their goal... scaring the sellers and short sellers... I'm sure the PPT money was out by the close..

 

[Chuck Krug]

Quote from oktiri:

--Job numbers were horrific
--INTC drops guidance drastically
-- Germany officially enters recession

We go lower, -300
THEN WHAT ? WE TEST THE LOWS SO WHAT ? the fact we didn't crash through, DOW gains 550 ?
Where is the logic ?

1 reason:
more buyers than sellers

 

[gnome]

Quote from cunparis:

'... I think the PPT is just conspiracy theory.

Wrong, Bucko. It's the President's Working Group on Financial Markets... signed into law in 1988 by Reagan.

"They" used to deny its existence, but have since even referred it on occasion in attempts to jawbone the market up.

 

[dumb_mother]

everyone was buying on stocktrad3rs advice

 

[Mecro]

Quote from S2007S:

This is what you call a BEAR MARKET RALLY.

Nothing else but a BEAR MARKET RALLY. Anyone who thinks this is the beginning of a new bull market is a complete IDIOT.

Bear markets have the strongest and most vicious uptrends. Short covers and gamblers racing over each other to catch a bottom.

This has already happened twice, it's the same pattern. PPT or not, this happens anyway. But the PPT has been very active lately.

 

[freewilly]

agree with gnome, PPT money will not stay, but I ma not sure whether that money was already out by yesterday close. I think they may scale out that money in few days.

Yesterday it was a manipulation. (I guess it could be PPT, or could be someone else who has a big pocket). It was a perfect time to manipulate the market. Sellers were exhausted as volume was drying up, and DOW reached a critical support level. It does not take a whole lot of money to reverse the course. Once the direction turned, lots of speculators came in, and the mission of PPT fullfilled.

The head of PPT must be a hell of trader himself.

 

[gnome]

Quote from freewilly:

"... The head of PPT must be a hell of trader himself.

Not necessarily... they pick the obvious points and give it a try. After all, their funds are unlimited and there is no consequence to them if wrong.

Lots of ET'ers (well at least a few) could be trading dynamos with a deal like that...

 

[freewilly]

gnome,
agree, PPT is different from typical traders. The goal is different, PPT's goal is not to make money, but instead PPT wants to stabilize the market.

Also PPT has lot of money, but not "unlimited". I gave PPT credit for picking up the perfect spot yesterday to manipulate the market. If PPT had unlimited money, PPT could reverse the course at any point.

It looks to me that PPT also wants to use their money most efficiently.

 

[freewilly]

if PPT's money didn't get out yesterday. Today will be interesting. Some people will take the profit today,and adding PPT wants to get the money out, the selling could be accelerating.

Basically, I don't think fundamentals support yesterday's rally, PPT does not have unlimited resources, so I believe the market will go down (maybe today, maybe a month from now, who knows.)