FED behind move on Monday ??

Discussion in 'Economics' started by Fari Hamzei, Jul 17, 2002.

  1. The locals would not know or even care....They would just want to lean on the order, but if you really wanted to know ask the phone jockey who took the order
    #11     Jul 18, 2002
  2. chisox

    chisox Guest

    was the order filled????????????????????????????????????/
    #12     Jul 18, 2002
  3. of course, it was filled!

    that is why we had such a short covering rally, like of which, we may not witness for a while.

    #13     Jul 18, 2002
  4. this whole fed theory WREAKS of HOPE!
    #14     Jul 18, 2002
  5. I think the theory that PIMCO was a net buyer wreaks of hope, too.
    #15     Jul 18, 2002

  6. It was noteworhty enough to make it to TeachTrade.com's real time S&P commentary. Managed by Brad Sullivan and Lewis "Big Italy" Borsellino, two of the biggest locals at the MERC.

    #16     Jul 19, 2002
  7. Bryan Roberts

    Bryan Roberts Guest

    HOPE????? i wish the fed would stay out of the market manipulation game. they did enough damage with their surprise rate cut during the 98 asain crises. but they had to bail out their nobel buddies at LTCM. can you say BUBBLE????
    #17     Jul 19, 2002
  8. Bryan Roberts

    Bryan Roberts Guest

    Good point!!!!!!!!!!!!!!!!
    #18     Jul 19, 2002

  9. Amen

    #19     Jul 19, 2002
  10. there was a new act signed by Reagan in the late 80's as a reaction to the 1987 crash. That act created the Fed Working Group. The slang term for the Fed Working Group is the "Plunge Protection Team". It is very real and they can do just about whatever they want and they don't have to tell anybody either. If they wanted to call up a pension fund and offer them unlimited credit for buying enough to move the markets they can.

    In terms of the order, my guess is that they made the huge purchase specifically to cause short covering, then they just had to feed it back out slowly into the market on the upswing. That way they make money and they have capital to do it again if needed. If they were buying to accumulate on the hope that the market was bottoming, they would have done it completely differently, as quietly as possible. They were trying to MAKE a bottom, and they did at least for that day.
    #20     Jul 19, 2002