Plunge Protection Team or not?
- Thread starter newestmember
- Start date
Evidence grows stronger with each stat.
Consumer Confidence 96 exp. 89 Act
Initial Claims up 2 weeks in a row
Jobs 58,000.. vs 150,000 last week
Dollar freefall
Gold Ramp
Key sectors not making new highs as the mkts do
REFI activity off 50%
Redbook retail sales off 6% vs last year
Consumer credit growth 900millon..vs 5bill Exp
Etc etc........
Strange days indeed.
Best,
David
Consumer Confidence 96 exp. 89 Act
Initial Claims up 2 weeks in a row
Jobs 58,000.. vs 150,000 last week
Dollar freefall
Gold Ramp
Key sectors not making new highs as the mkts do
REFI activity off 50%
Redbook retail sales off 6% vs last year
Consumer credit growth 900millon..vs 5bill Exp
Etc etc........
Strange days indeed.
Best,
David
In order to avoid foreigners bail out of the US equity market due to the current USD problem. You need to "inflat" the mkt to make the book looks at least a "even" trade.
i.e. every 1% drop in USD value against another currency, you need to inflat the US Stock Mkt by 1% to offset the pain felt by the foreign owners.
Since Jun this year, whenever the currency has a sharp move downward, the mkt has a magically protection of not moving downward and forced the shorts to drive the mkt up in about the same %
On the other hand, the bond mkt reflect more reality than the stock mkt at the moment.
May it is the Fed.
May be it is the funds invested by the foreigner.
Maybe just coincidents after all
i.e. every 1% drop in USD value against another currency, you need to inflat the US Stock Mkt by 1% to offset the pain felt by the foreign owners.
Since Jun this year, whenever the currency has a sharp move downward, the mkt has a magically protection of not moving downward and forced the shorts to drive the mkt up in about the same %
On the other hand, the bond mkt reflect more reality than the stock mkt at the moment.
May it is the Fed.
May be it is the funds invested by the foreigner.
Maybe just coincidents after all
Greenspan and Company have definitely been propping up the market. I dunno about direct purchases but I'm sure they have other tools besides printing cheap money.
Bush definitely needs to get to reelected if they plan to take riches out of Iraq. So they will do whatever they can to keep the market up. However, what he really needs to do is create some jobs. Apparently all these ploys still can't fool the companies into hiring.
Bush definitely needs to get to reelected if they plan to take riches out of Iraq. So they will do whatever they can to keep the market up. However, what he really needs to do is create some jobs. Apparently all these ploys still can't fool the companies into hiring.
Do we need any further evidence?
After yest 150 Dow puke, and lowered guidance from WMT, TGT, and BBY.....
And just like that we are back up to yest HOD on the DOW.
This market is be walked up....no doubt.
Best,
David
After yest 150 Dow puke, and lowered guidance from WMT, TGT, and BBY.....
And just like that we are back up to yest HOD on the DOW.
This market is be walked up....no doubt.
Best,
David
lol. whenever we don't understand the market we think conspiracy. its pretty simple really. dow stocks are strong because a weak dollar makes their exports cheap and retail is weak because a weak dollar makes the products they import more expensive.
big money figures these things out and plays them.
How do you know I don't understand the markets.
You should see what I am Long and Short.
I am simply stating that after an uninterrputed 3000 DOW points and ZERO corrections, I really do think when we are key points of weakness we always seems to magically reverse.
Trust me too, I am not the only one voicing this opinion, it's getting loud on the Street as well. (People I know at Merrill, call it the Greenspan put)
And when WMT TGT and BBY guide to low end of guidance, that is a good sign the consumer is about spent.
I could go on and on if you like.
PS. Tell me you thought we would be up today after yesterdays action? If you did you are a better man than me!
And like I said in a previous post..it's all in fun anyway.
Best, and Good Trading
David
Quote from bobcathy1:
Dude, I am putting on my tin foil hat right now.
Just for your information....plunge protection is stopping the electronic market when it spikes or plunges a certain amount. Usually they void certain trades that are at the extremes.
You are all making me laugh!
Good!
Me too