A Totally Rigged Market

Visaria · Aug 4, 2017

piezoe said:
This article is unbelievably off base. Central banks don't by stocks!!! And everything they buy is disclosed on their websites. The crap that is on the internet these days is astounding!! This article is almost entirely bullshit!

For example' the Norwegian global investment fund is managed by Norges Bank Investment Management as a service to the Norwegian ministry of finance, The fund is overseen by the Norwegian Central Bank. But Central Bank operations are entirely separate from the Global Investment fund management. The fund contains equities, but the Fund operations are separate from Norwegian Central Bank operations.

When the Author says Central Banks, does he mean the U.S. Federal Reserve System? The ECB? Which central bank? What Central Bank? The U.S. Central Bank does not by stocks, they buy bonds. They Bought some GM Stock as an expedient and convenience for the U.S. Treasury, and held it for a few hours before it was Transferred to the Treasury Department. The U.S. Central Bank, and other central banks buy Bonds, typically sovereign bonds. The U.S. Central Bank bought, during the recent crisis as an emergency measure, discounted CDOs (another type of Bond) from some banks who could not otherwise meet their reserve requirements when the market for CDOs collapsed and these CDOs could, therefore, not be fairly valued by a normal price discovery process.

The U.S. Central Bank does not by equities. It is no wonder people have such weird ideas with crap like this being published.
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Not read article...but I think Bank of Japan does buy Japanese equities.

piezoe · Aug 4, 2017

murray t turtle said:
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PieZoe;
here is the quote i did note. ''Bank of Japan Surprises With Boost in Asset Buys ....to 80 trillion yen a year, about $713 billion, buying long dated bonds, , riskier assets like equities. The yen plunged to a 7 year low'' IBD {investors Business Daily monday NOV 3,2014.}NasdaQQ made a new high ,then, like now. 2 days after Fed Ends QE3.

I remember that front page news /pic of BOJ gov....because the NasdaQQQ chart made a new high about the time that was published in 2014; even though it was a SEPT sell+ OCT sell,[below 50 day moving average] 2014
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That's interesting! So what are the words between the commas? Is the Japanese Central bank now like Goldman with a bunch of fat guys in bedroom slippers eating pizzas, smoking cigars and manipulating the equities market by buying/selling billions worth of equities on margin like madmen on reefers. The only thing that could make this analogy perfect is if BOJ starts recommending that the public sell the junk they want to buy and buy the junk they want to sell.

Visaria · Aug 4, 2017

I just googled it...bank of japan has been buying Japanese equities via etfs for the last 6 years.

murray t turtle · Aug 4, 2017

piezoe said:
That's interesting! So what are the words between the commas? Is the Japanese Central bank now like Goldman with a bunch of fat guys in bedroom slippers eating pizzas, smoking cigars and manipulating the equities market by buying/selling billions worth of equities on margin like madmen on reefers. The only thing that could make this analogy perfect is if BOJ starts recommending that the public sell the junk they want to buy and buy the junk they want to sell.
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That means i dont type fast, lol;
so i gave you the meat of the move- IBD news. I dont need the BOJ to confirm ; its A BULL MARKET YOU KNOW. But Bank of Japan +IBD had great timing. I wondered if they helped tank the Yen[ 7 year downtrend @ 2104]to help USA sales of HMC, TM , Nissan?? Dont know, ;great autos/trucks,owned several of those-not a stock tip

piezoe · Aug 4, 2017

Visaria said:
Not read article...but I think Bank of Japan does buy Japanese equities.
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I think you're right! I found this, http://mobius.blog.franklintempleto...ral-banks-and-stock-markets-a-boj-case-study/
And even though that article is from a U.S. mutual fund company I have way more confidence in their assessment of BOJ operations then I ever would in zerohedge which I consider to be essentially garbage.

I also found this https://www.boj.or.jp/en/statistics/boj/other/acmai/release/2017/ac170731.htm/
Now I'd like to know more of the story.

piezoe · Aug 4, 2017

murray t turtle said:
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That means i dont type fast, lol;
so i gave you the meat of the move- IBD news. I dont need the BOJ to confirm ; its A BULL MARKET YOU KNOW. But Bank of Japan +IBD had great timing. I wondered if they helped tank the Yen[ 7 year downtrend @ 2104]to help USA sales of HMC, TM , Nissan?? Dont know, ;great autos/trucks,owned several of those-not a stock tip
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You guys are right! Holy Mackerel Kingfish! see my response to Visaria for some informative links I found.

piezoe · Aug 4, 2017

WoW! This is fascinating. I had no idea. Thank you guys for cluing me in.

murray t turtle · Aug 4, 2017

piezoe said:
I think you're right! I found this, http://mobius.blog.franklintempleto...ral-banks-and-stock-markets-a-boj-case-study/
And even though that article is from a U.S. mutual fund company I have way more confidence in their assessment of BOJ operations then I ever would in zerohedge which I consider to be essentially garbage.

I also found this https://www.boj.or.jp/en/statistics/boj/other/acmai/release/2017/ac170731.htm/
Now I'd like to know more of the story.
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I figured it [ bank of japan central bank ]bond buys, stock buys, REIT buys,was true,PieZoe, when i read it on IBD[ Investors Business Daily ]newspaper-they're very accurate. But even more important to me===== NasdaQQQ, S&P 500/SPY was +is in a bull market [above 200 day moving average]. Not a prediction......

piezoe · Aug 4, 2017

murray t turtle said:
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I figured it [ bank of japan central bank ]bond buys, stock buys, REIT buys,was true,PieZoe, when i read it on IBD[ Investors Business Daily ]newspaper-they're very accurate. But even more important to me===== NasdaQQQ, S&P 500/SPY was +is in a bull market [above 200 day moving average]. Not a prediction......
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I've laid the bull market mainly to two things: the depth of the recession making the recovery exceptionally drawn out, and a currently weakening dollar which tends to draw out the bull even more (I consider dollar strength and weakness to be a very important background factor in deciding longer term market bias.)* But now I realize I should be paying more attention to what the BOJ is doing. I assume they only buy Japan stocks as they would want to influence the NIKKEI, make people feel rich, and spend spend spend!
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*Of course the dollar is not unrelated to interest rates and what the bond market is doing. I like to follow the dollar futures.

murray t turtle · Aug 4, 2017

piezoe said:
I've laid the bull market mainly to two things: the depth of the recession making the recovery exceptionally drawn out, and a currently weakening dollar which tends to draw out the bull even more (I consider dollar strength and weakness to be a very important background factor in deciding longer term market bias.)* But now I realize I should be paying more attention to what the BOJ is doing. I assume they only buy Japan stocks as they would want to influence the NIKKEI, make people feel rich, and spend spend spend!
_____________
*Of course the dollar is not unrelated to interest rates and what the bond market is doing. I like to follow the dollar futures.
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CAN SLIM [IBD]explains a lot, also