Whats keeping the dow above 10,000 (apart from the plunge protection team)??

Quote from spanish89:

But so apart from the plunge protection team and ecb what else does everyone think is keeping the market from being allowed to crash??
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Keep in mind we've been in a bull market the last few years (and an extremely strong one at times). When a bull market switches to an actual bear market it tends to take a lot of time for the psychology to fully shift. For the last few years buying pullbacks and buying into weakness generally has worked very well whereas selling into weakness has been the wrong move.

Until those patterns stop working, traders/investors will keep doing the same stuff. For now there just aren't enough people bearish enough to be willing to sell aggressively as prices decrease.

Also more HFT firms might simply just favor long strategies in the current bull market because they've backtested the best. They might be the dominant players until real big sellers actually start feeling the need to act more aggressively.
 
And once again Dow spikes vertically over 100points in under 5minutes,
after floating sideways all day,
on absolutely no news, data, or any other catalyst...!!! :confused:
 
Quote from spanish89:

And once again Dow spikes vertically over 100points in under 5minutes,
after floating sideways all day,
on absolutely no news, data, or any other catalyst...!!! :confused:
More...

Window dressing for the end of the quarter. Cutten's favorite.
 
Quote from spanish89:

Anyone with half a brain knows that the plunge protection team & ecb have been very very active in the markets over the last few weeks in directly buying futures, bonds and shorting the vix to prevent mass market meltdown in the runup to all the giant catastrophe risks that were mere days away like the greek elections... ect

(A crappy little bank in usa called lehmans admitting they were too idiotic to be profitable traders and so were closing caused 800+ points crash in dow and made Vix rocket upto 90,
therefore there mere risk of an entire continent falling apart and going into financial meltdown with collapse would make lehmans look like nothing worth even mentioning ever again!)

Yet there has been no panic, no frequent 300point intraday crashes, Vix cant even break above 25!! :eek: :confused:



But so apart from the plunge protection team and ecb what else does everyone think is keeping the market from being allowed to crash??
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one of the most important aspects to the market is PRICE ACTION. You have to understand price action to have any hopes of being a winning trader. It's one of the oldest "rules" in the book, kind of like "allow winners to run and cut losers short."

If you have a lot of bad news and the market refuses to go down, it is a huge signal for you: the market is very strong.

That said, the market is still in a correction, sometimes it does take time to fully play out what the market is going to do. Who knows, we may be in the beginning stages of a bear market. Tis best to stay out or stay short until the market turns itself around, believe me, a market with this much size doesn't turn on a point, it may take weeks or months to turn it all the way around, so you have time if you're bearish.

The main point is, the market doesn't need to do what you think the market should do based on the news. The market will do what it wants to do, and no plunge protection team or whatever can change the long run action of the market. If they want to give it a try, they certainly can, and the market may go up in nominal terms, but then the currency they print in order to make the market go up will certainly cause the dollar to crash. The government is not omnipotent, they have no wealth, just a printing press. And ther are limits to a printing press.
 
Quote from plyka:

one of the most important aspects to the market is PRICE ACTION. You have to understand price action to have any hopes of being a winning trader. It's one of the oldest "rules" in the book, kind of like "allow winners to run and cut losers short."

If you have a lot of bad news and the market refuses to go down, it is a huge signal for you: the market is very strong.

That said, the market is still in a correction, sometimes it does take time to fully play out what the market is going to do. Who knows, we may be in the beginning stages of a bear market. Tis best to stay out or stay short until the market turns itself around, believe me, a market with this much size doesn't turn on a point, it may take weeks or months to turn it all the way around, so you have time if you're bearish.

The main point is, the market doesn't need to do what you think the market should do based on the news. The market will do what it wants to do, and no plunge protection team or whatever can change the long run action of the market. If they want to give it a try, they certainly can, and the market may go up in nominal terms, but then the currency they print in order to make the market go up will certainly cause the dollar to crash. The government is not omnipotent, they have no wealth, just a printing press. And ther are limits to a printing press.
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I used to be very pissed when the market was being propped up many a time during the last hour. Now, I'm much more aware of when they might be pulling this crap. So I now said, thank you very much for the free gift or just quickly exit my short position. My opinion is trading price action keep you very flexible as you are constantly making adjustments and reading in real time but it is more intensive than other methods. It takes a lot of time to develop good "tape" reading skill via extensive screen time and recognizing the possible set ups.

There's a lot of back lash against the market crashing such as destruction of 401k's, complete lost of public trust, shrinking financial activities etc...This is bad business for Wall Street so for now they must keep it from taking a nose dive until they can no longer keeping it up (which can be a very long time).

An example would be a high priced company like Amazon, if no one is selling or if there's a willing buyer than price will never drop despite the ridiculous PE. However, it might be very fast to crash like Netflix and slow to rebound due not being in the value category.

The PE ratio of most companies to day are lower than the past so despite the bad economy, the market will not fall as hard. Keep in mind that market must also rise due to inflation as well.
 
Well they want to make sure that since every one is so negative ( short the mkt ) and they keep covering their shorts and loose hope and when no one expect it they will sell the market

Its just matter of time and for the vix = vxx , tvix it just a matter of being at the right time in them

Even through Astrology they say july is going to be a very bad month for the stock market ( greece , italy , spain , Cyprus , iceland .
Lay off , housing depressed.

Whats next - ? sp 1100
 
Quote from spanish89:

Anyone with half a brain knows that the plunge protection team & ecb have been very very active in the markets over the last few weeks in directly buying futures, bonds and shorting the vix to prevent mass market meltdown in the runup to all the giant catastrophe risks that were mere days away like the greek elections... ect



Yes the futures are manipulated by large banks, central banks...etc. I notice it more when the European markets are open... they make it so obvious. They'll stack 300+ contracts either on the bid or the ask (NQ) easily manipulating it up/down. They'll also flash large block orders almost as if they are warning they're friends... minutes later the futures will began a large intraday trend. If i remember next time I'll record it and post it here.

JP Morgan's London shop is known to manipulating down gold prices...google it.

I didn't believe it till I saw it with my own eyes... just part of the game. I tell my friends this, they say I'm crazy... but it's not so crazy to think Bernanke and friends would give AIG billions, but they won't put billions into propping up the futures?
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The Fed already publicly declared in 2008/9 that there is a group of employees who work in an office for the fed called the ''Plunge Protection Team'' who's job it is to keep the futures markets from crashing too vertically or in runup to big news events buy buying the markets with fed money.

Google plunge protection team if you dont believe me, as fed theres hundreds of news articles where various fed officials confirmed this even. :)


And its a known fact that ebc do maninuplate the bond markets why buying bonds themself to try lowering yields,
they have public admitted it countless times.
 
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