Plunge Protection Team working overtime

Discussion in 'Trading' started by Digs, Aug 8, 2007.

  1. Digs



    The last two trading sessions have seen the index sell off after lunch, then within 1 hour before the close, massive buying happens out of the blue !!!

    Is this Paulson Plunge team working extra long hours..!!!
  2. for any of us that have been trading since '98...what was the day they closed the mkt early? I thought it was in late sept. but it may have been early oct. How about tossing some tales of that day around?
  3. using overnight charts, yesterday's rise STINKS of PPT

    it was a perfect failed backtest of through the 50 up to the 20 day ma, on the dow and they JAMJOBBED it back over the 20 ma

    (over the 5 and 10 weekly ma too)

    obvious case of 'repairing an ugly candle' on the daily chart

    pretty easy to do that, when you can print money out of thin air
  4. cvds16


    there exists no such thing as a PPT !
  5. Santa, the Easter Bunny, the Good Tooth fairy, Peace on earth, beneign inflation, full employment, and eternal youth don't, but the PPT does.

    Enacted in March 1988. Seen the legislation. Covert. Curbs (explicit to appease the public) introduced roughly the same time.

    But PPT is not performed the way suggested. Not sustained. To use a rough analogy, like the governor on the air compressor of a large truck. Cuts in at 90 PSI, cuts out at 125 PSI. Exclusively futures. Which implies large, liquid, indiscriminate, and for the most part NYSE stocks.

    What's neglected to be mentioned is the PROGRAM trades that kick in on its coat tails at any hint of PPT. Impacts more issues.

    I haven't seen TRIN turn on a dime often. Less than once a quarter. But it does. Generally early afternoon.
  6. Pekelo


    PPT does exist, but it can do NOTHING against a controlled descent, like the Dow dropping 200 pts 20 days in a row...
  7. fusionz


    why is it when the market tanks 200 points in 30 minutes no one mentions some plunge selling team?
  8. The "controlled" descent is coming from the agendas of specialists on the 30. The distinction being inventory posture, yet to mature omnibus accounts, and factors you would diminish in importance such as voting power of shares. Mucho aggregate moola involved versus...................PPT futures. Derivative. Merely brakes.
  9. The selling "team" are the DJIA (or shall we say S&P 500) specialists, replenishing inventory and/or covering shorts (as the case may be).

    Sharp fast moves on such liquid stocks aren't the result of a lack of bids, but to clean out stops, induce the stopLESS, and reach price objectives with minimal public participation. Works like a charm.

    "fast market" makes for a convenient broad brush excuse for fills away from hard stops.

    This happens far more often than you may think since certain rising massive cap stocks MASK the carnage in others falling (fast). The focal point being the overall INDEX.
  10. duard


    The PPT, yes, well it certainly looks like it was working away Monday and Tuesday Aug 3rd and 4th.

    Then Bush publicly says "Don't fear the markets will stabilize." Now I'm just a farmboy but sheesh isn't that the "tell."
    #10     Aug 9, 2007