The Working Group on Financial Markets, aka "Plunge Protection Team" or PPT. YM is not up 60+ since she said it.
Was it coincidence the Fed cut the discount rate by 0.50 the day after this huge reversal candle? Did Ben give C, GS, MER, et al., a nod and a wink? No one really knows but it was awfully suspicious.
And...if you were watching this day very closely, and you have a good memory, you'll recall the Dow was at all time highs and a wave of relentless selling came in. Every freaking uptick was sold with reckless abandon. Someone was getting out no matter what. The selling kept coming until the last 1/2 hour of the day. Was the PPT taking profits?
"The stock market is certainly not too big for the Fed to handle. The foreign exchange and government securities markets are vastly larger. Daily trading volume in the New York foreign exchange market is $130 billion. The daily volume for Treasury Securities is about $110 billion. The combined value of daily equity trading on the New York Exchange, the American Stock Exchange and the NASDAQ over-the-counter market ranges between $7 billion and $10 billion." "An appropriate institution should be charged with the job of preventing chaos in the market: the Federal Reserve....The Fed already buys and sells foreign exchange to prevent disorderly conditions in foreign exchange markets. The Fed has assumed a similar responsibility in the market for government securities. The stock market is the only major market without a marketmaker of unchallenged liquidity or a buyer of last resort." ... "The Fed could support the stock market directly by buying market averages in the futures market, thus stabilizing the market as a whole." - Former Federal Reserve governor Robert Heller in a 1989 WSJ article
Exactly. The Fed is the buyer of last resort and why wouldn't they want to profit from it. The FOMC stands for Federal Open Market Committee. Or, as we affectionately like to call them, the PPT. It's not a myth. It's a simple matter of fact. The FOMC conducts its operation on the Open Market to stabilize price. You learn this in Financial Markets 101.