Do a search on Google with "plunge protection team" and you'll find lots of interesting info. Here's a site devoted to consolidating stories about the PPT: http://members.rogers.com/fallstreet1/plungeprotection/plungeprotection.html
Just look, on Tuesday the world was ending with the Cons. Confidence #s, and it looked bleak, but now just a day later all's well...hell it's downright euphoric again...come on, if you don't think this is manipulated? Also checkout the Greenspan Put theory, where Elmer rescues the market at every turn, 1998 (LTCM, Russia), 2001 (Early Jan, looks dire, boom Jan 3, 01, surprise rate cut!, same Apr 01, Sept, 01); Nice rally of Oct low's just like July's, but can't let this one fall apart..so Nov 6, boom 50bp cut! Without these measures we would most likely be at a lot lower prices. I don't care if they are rigged really (actually helps trading), just pointing out how desperate the Govt is to keep things up after the biggest bubble of all time.
Interesting article easyguru. I would definitely expect some regulation to prevent severe crashes of the stock market by halting trading and keeping certain lenders open to provide liquidity. However, I'm not so convinced that the FED et al is directly manipulating markets, epecially as often as people are saying on these boards. I'm not saying it is impossible, but it seems a bit far fetched. Would it even be legal for them to do this and then conceal it?
You'd better get it under your skull, so you can start making some money on it, Jeffo. How do you know I'm not making money? I go by price and volume, not what the man behind the curtain may or may not be doing according to my imagination.
I agree with you 100% on just watching price and vol, 99% of the time i do so as well , but man on that other 1% when ever things look so dire, the rewards are sweet! Thanks PPT! Good trading
It's not a sole action of the FED, all major players are involved, what do you think the stakes are of the pension funds and the likes as Bill Gates in this market. remember how these big shots after 9/11 publicly declared that they weren't going to sell. I' ll never forget the market action in those days. every day the markets in europe were down big time before the US markets opened, just to finish positive day after day. Last year the major indexes in europe shed about 30-40%, indexes that consist of global companies. don't tell me that these companies are doing a lot worse than the us-multinationals. to me this is another indication that the Us-markets are being kept afloat. think about the revision of statistics. Doesn't it strike you it as odd that consumer confidence is declining for a year now and that is is not reflected in business confidence? the signs are everywhere. it's a one big fakeshow, but so what, i have to make a living of it, so i've learned not to fight it.