Prepare for more upside manipulation short term

Discussion in 'Trading' started by local_crusher, Sep 2, 2005.

  1. / next week. I am really pissed about this.

    I can ensure you, this mkt has been manipulated to the upside for months / years. But recently it got ugly:


    The news is, that whoever pushes it up, now uses his "good reputation" sometimes to attract other buyers.
    July 21st - July 27th and the following rally is a perfect example.
    Of course, these buyers run into already higher prices and the
    real money HAS already been made.


    I would estimate, 30-50% of the smart money knows sometimes when the next proping shall occurr.

    If you think the mkt is too big and impartial to be manipulated,
    ROFL, forget it!!!!! The problem is individual thinking and
    valuation.
     
  2. yeayo

    yeayo

    the two days the government/banks experimented with a free market it crashed (in 29 and 87) - manipulation is absolutely neccesary or else there would be no risk-free money to be made
     
  3. Ok I will bite !

    Tell me HOW this could possibly be done?
     
  4. local, I think it's quite obvious that they do it to create/maintain the "wealth effect" and keep US consumers spending. The US did it by creating asset bubbles (stocks, bonds, houses etc).

    The objection ofcourse would be that some benefit much more from this.
     
  5. lets see..

    The world markets are secretly controlled by sinister banks.

    Those evil banks are controlled by an elite international group of Zionists.

    And the Zionists are discretely directed by aliens using mind control.


    The only question is..

    WHO CONTROLS THE ALIENS??
     
  6. Superior information means (and should mean) superior influence.
     
  7. What did the government/banks do differently on these two days then every other day? I was pretty sure that the crash in 29-32 didn't happen in one day. Please elaborate.
     
  8. I was under the assumption that the stock market bubble of the 90s was caused by the idea that the internet was about to change everything, it was like a new industrial revolution all over again. People fed off this idea and forced prices higher.

    I can distinctly remember Alan Greenspan warning of "irrational exuberence," and raising FF rates in the late 90's. How did this create as asset bubble?

    LTCM, probably the "smartest money" any where when they were doing well managed to blow up when their edge disappeared. This idea that there is some malevolent force controlling the market is ridiculous. I want names . JPM has been posting enormous trading losses, their not the smart money. LTCM, as I already mentioned, controlled billions of dollars for the wealthest firms and institutions, blew up. So if its not the big banks and hedge funds who is it? The black hand? Or were JPM and LTCM just not allowed to come to the meetings for a couple of weeks?
     
  9. Hi!

    The FED "used to" manipulate the market(s) when they were smaller. Especially, gold and oil. I remember one second ranking FED official, in particular, state very clearly; "If we want oil at $10, or Gold $100, we have the power to do it." That was 1990!

    They only have the power to interceed now, in any and all of the markets: especially the currencies. This week, the market was already oversold and due for a bounce. Trade profitably, and don't worry about whose doing what.

    Enjoy the weekend!

    Tony
     
  10. The entity I have in mind is ESF (Exchange Stabilization Fund), PPT etc. Depending on the market, probably masked behind some "Carribean funds".

    All I'm saying is that governments can and do intervene in the markets. In forex (where it's a daily phenomenon), in bonds and most probably also in stocks.

    Many governments over the world have intervened to support stocks. I think it's very possible that US is "managing" stocks too, although "officially" they don't.

    They'd could just intervene at key points of perceived support or resistance, and/or pump some money, create momentum, "send the message" and let rest of market participants carry on. Or maybe just buy the futures themselves. Especially when short-interest is at these high levels and squeezing the shorts will fuel the rise.

    I think this is how the game is played during the last 2 year in SP and Dow.

    To give an example, during April-2005 Dow was falling hard and approaching the "psychological barrier" of 10.000. Well, during late April, early May the US Fed pumped freshly printed money (POMOs) SEVEN (7) times, whereas it had printed no new money since late 2004. Stocks would open with futures overnight gaps of +1%.

    AFAIK the case of JPM you're citing is in bonds. That's a different thing. And the LTCM debacle was something quite different as they traded in FOREIGN (non-US) bonds. Again on inside info, in close cooperation with governments (e.g. Italian one)

    Also big players can be tipped off by the true insiders in bonds and forex. E.g. in 2001 when US discontinued the 30yr bond.
     
    #10     Sep 3, 2005