Friday reminds me this article Late rallies rouse suspicions By Peter Brimelow, CBS.MarketWatch.com Last Update: 12:40 AM ET June 27, 2002 NEW YORK (CBS.MW) -- These days, violent market reversals are really making everyone queasy - even when they finish with a closing rally, like Wednesday and Monday. Tuesday's closing triple-digit Dow loss, coming after a triple-digit gain earlier in the day, claimed a notable victim in investment letterland: TheDowTheory.com's Jack Schanepp, who announced the action constituted a Dow Theory sell signal. By Schanepp's count, this means he lost 4.8 percent on his bold bullish call last November. Just last week, I noted that Schanepp was one of two Dow Theory letters maintaining that the bull market was still intact. Now there is one: Dow Theory Forecasts http://www.dowtheory.com It says it's still bullish. But it's sounding, well, queasy. But even days that end with a rally make some letters unhappy. This is because the pattern of sudden last-hour buying feeds the suspicions of those who believe the authorities have been systematically intervening in the stock market, trying to manage the bursting of the Great Bubble of the 1990s. It's a hairy theory, typical of letterland's willingness to think what Wall Street thinks is unthinkable. Most letters post their market comments too late for us to check what they were saying about this issue by press time. But On The Money's Dennis Slothower http://www.onthemoney.com/ had this intriguing comment last Friday about a market in which everyone accepts there is official intervention - foreign exchange. "I can't help but wonder when the Euro was falling out of bed a year ago if some sort of agreement was reached between the central bankers to bring the Euro up and the dollar down in order to reach a parity between the two currencies. Certainly trade balances had grown all out of whack as we saw even with yesterday's trade report. We are now reaching this parity... the dollar is plunging fast and panic selling is overtaking the markets. When fear and pain get too severe as we are seeing now, the central bankers are more likely to take some action to stabilize things. This isn't because they care about how much pain you are suffering, but rather plunging markets become far more unruly to manage and more expensive to stabilize, the more panicky it becomes...We are beginning to feel an ominous threat to the markets (and I believe world markets too) if these critical supports are violated at the September lows. You can be sure the central bankers are very aware of this threat." And one letter who does post his daily comments immediately - Dow Theory Letter's http://www.dowtheoryletters.com/ Richard Russell - included a long attachment about a leaked Royal Bank of Canada report which appears to be the first financial establishment endorsement of the thesis, long and vigorously argued by Billy Murphy's LeMetropole CafÃ© http://www.lemetropolecafe.com/ website, that the gold price is being held down to mask gathering financial instability. Gold's early rally certainly got squashed Wednesday -- paradoxically in view of the weak dollar. Russell isn't worried -- he expects gold to trade some multiples higher eventually. He's speculated about stock market manipulation in the past. But yesterday, as the leading bearish Dow Theorists at the age of 78, he was savoring what looks like the rout of his younger rivals.