Plunge Protection Team working overtime
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for any of us that have been trading since '98...what was the day they closed the mkt early? I thought it was in late sept. but it may have been early oct. How about tossing some tales of that day around?
using overnight charts, yesterday's rise STINKS of PPT
it was a perfect failed backtest of through the 50 up to the 20 day ma, on the dow and they JAMJOBBED it back over the 20 ma
(over the 5 and 10 weekly ma too)
obvious case of 'repairing an ugly candle' on the daily chart
pretty easy to do that, when you can print money out of thin air
it was a perfect failed backtest of through the 50 up to the 20 day ma, on the dow and they JAMJOBBED it back over the 20 ma
(over the 5 and 10 weekly ma too)
obvious case of 'repairing an ugly candle' on the daily chart
pretty easy to do that, when you can print money out of thin air
Santa, the Easter Bunny, the Good Tooth fairy, Peace on earth, beneign inflation, full employment, and eternal youth don't, but the PPT does.
Enacted in March 1988. Seen the legislation. Covert. Curbs (explicit to appease the public) introduced roughly the same time.
But PPT is not performed the way suggested. Not sustained. To use a rough analogy, like the governor on the air compressor of a large truck. Cuts in at 90 PSI, cuts out at 125 PSI. Exclusively futures. Which implies large, liquid, indiscriminate, and for the most part NYSE stocks.
What's neglected to be mentioned is the PROGRAM trades that kick in on its coat tails at any hint of PPT. Impacts more issues.
I haven't seen TRIN turn on a dime often. Less than once a quarter. But it does. Generally early afternoon.
The "controlled" descent is coming from the agendas of specialists on the 30. The distinction being inventory posture, yet to mature omnibus accounts, and factors you would diminish in importance such as voting power of shares. Mucho aggregate moola involved versus...................PPT futures. Derivative. Merely brakes.
The selling "team" are the DJIA (or shall we say S&P 500) specialists, replenishing inventory and/or covering shorts (as the case may be).
Sharp fast moves on such liquid stocks aren't the result of a lack of bids, but to clean out stops, induce the stopLESS, and reach price objectives with minimal public participation. Works like a charm.
"fast market" makes for a convenient broad brush excuse for fills away from hard stops.
This happens far more often than you may think since certain rising massive cap stocks MASK the carnage in others falling (fast). The focal point being the overall INDEX.