Looks like someone's flying back ATM. Realistically speaking, what can be done to pause or worse yet reverse the momentum back on the bullish side?
How much interest rate cut will make you rethink the current trajectory? How real is the PPT "threat"
I'm working under the assumption that this admin will not bee shy about propping the market. So feel free to go wild with your hypotheticals; this is mostly an information gathering thought experiment to make me raise an eyebrow when I see the news.
https://markets.businessinsider.com...onavirus-rages-stock-market-2020-2-1028938046
How the Plunge Protection Team (PPT) Might Work
On Monday, February 5, 2018, the Dow Jones Industrial Average (DJIA) experienced a drop that was twice as large as its biggest point decline in history. However, arbitrary and aggressive buying cut the decline in half in one day. On Tuesday and Wednesday of that week, stocks opened lower, and each time aggressive buying buoyed the markets. That aggressive buying, some say, was being orchestrated by the Plunge Protection Team.
Or, to take a more recent example: The Plunge Protection Team's aforementioned teleconference on Dec. 24, 2018. That whole month, the S&P 500 had been heading towards a record decline—the motive for the team's meeting—and the DJIA dropped 650 on the 24th alone. But when trading resumed after Christmas, the DJIA rallied over 1,000 points. On the 27th, it lost half those gains, until a late-day reversal stopped the slide, and caused the market to close 600 points up. That's no coincidence, conspiracy theorists argue.
How much interest rate cut will make you rethink the current trajectory? How real is the PPT "threat"
I'm working under the assumption that this admin will not bee shy about propping the market. So feel free to go wild with your hypotheticals; this is mostly an information gathering thought experiment to make me raise an eyebrow when I see the news.
https://markets.businessinsider.com...onavirus-rages-stock-market-2020-2-1028938046
How the Plunge Protection Team (PPT) Might Work
On Monday, February 5, 2018, the Dow Jones Industrial Average (DJIA) experienced a drop that was twice as large as its biggest point decline in history. However, arbitrary and aggressive buying cut the decline in half in one day. On Tuesday and Wednesday of that week, stocks opened lower, and each time aggressive buying buoyed the markets. That aggressive buying, some say, was being orchestrated by the Plunge Protection Team.
Or, to take a more recent example: The Plunge Protection Team's aforementioned teleconference on Dec. 24, 2018. That whole month, the S&P 500 had been heading towards a record decline—the motive for the team's meeting—and the DJIA dropped 650 on the 24th alone. But when trading resumed after Christmas, the DJIA rallied over 1,000 points. On the 27th, it lost half those gains, until a late-day reversal stopped the slide, and caused the market to close 600 points up. That's no coincidence, conspiracy theorists argue.
