so what do you guys think, the reason why the markets went up on monday was because of the fed coming in and buying futures. The reason why we are seeing weakness now is the fed sellling off those stocks and futures. Any truth here
Is Fed's 'Working Group' Stabilizing Markets?
9/1/2005 10:36 AM EDT
Before consigning such thinking to "conspiracy theorists," it does explain the curious market action we have observed.
Have you noticed what the market has done in the wake of worrisome, ostensibly bearish events? The two latest examples are, of course, the London bombings and the current Katrina-induced crisis. You will recall that after the London events, the market opened lower, though well above the premarket lows, and soon proceeded to stage a powerful rally. Yesterday's action was eerily similar. I submit a hypothesis: Considering that a resolution of the oil crisis was nowhere in evidence yesterday, quite the contrary, one would have expected a down market or at best one very hesitant, not an explosive rally.
So what's going on? My opinion is that the "working group," a shadowy arm of the Fed, steps in to "stabilize" things and give the public a reason for optimism. This is done through the index futures market and has long been rumored to have stopped the crash in 1987.
Consider the effect of a market plunge on an already black mood. The crisis is real and people's lives and livelihoods are at stake, so perhaps such clandestine intervention is justified and trumps the concept of "free markets." Before consigning such thinking to "conspiracy theorists," it does explain the curious market action we have observed and most importantly, armed with such knowledge, one could, upon the next frightening event, go long with a high level of assurance that a strong rally was very soon to start.
Position: None mentioned
Is Fed's 'Working Group' Stabilizing Markets?
9/1/2005 10:36 AM EDT
Before consigning such thinking to "conspiracy theorists," it does explain the curious market action we have observed.
Have you noticed what the market has done in the wake of worrisome, ostensibly bearish events? The two latest examples are, of course, the London bombings and the current Katrina-induced crisis. You will recall that after the London events, the market opened lower, though well above the premarket lows, and soon proceeded to stage a powerful rally. Yesterday's action was eerily similar. I submit a hypothesis: Considering that a resolution of the oil crisis was nowhere in evidence yesterday, quite the contrary, one would have expected a down market or at best one very hesitant, not an explosive rally.
So what's going on? My opinion is that the "working group," a shadowy arm of the Fed, steps in to "stabilize" things and give the public a reason for optimism. This is done through the index futures market and has long been rumored to have stopped the crash in 1987.
Consider the effect of a market plunge on an already black mood. The crisis is real and people's lives and livelihoods are at stake, so perhaps such clandestine intervention is justified and trumps the concept of "free markets." Before consigning such thinking to "conspiracy theorists," it does explain the curious market action we have observed and most importantly, armed with such knowledge, one could, upon the next frightening event, go long with a high level of assurance that a strong rally was very soon to start.
Position: None mentioned
