if the big dogs want to unload their portfolios,and thats legal,then they will, and ppt can only use the down 200 dow point,stop for 30 minutes rule,after that they have no power,so don't believe in a safety net thats not there
they do not admit it but they have no comment. its like special forces operations in the military. we all know it goes on but offically they do not exist. follow my link to the us treasury page. they openly admit what they do. http://www.treasury.gov/offices/international-affairs/esf/
That's exactly right. Soros and Kovner will tell you their greatest opportunities to trade size have come from fading currency interventions via Central Banks.
Legitimate order flow is illegal? The Fed and Treasury "intervene" in Treasury and FX markets on a daily basis. Compared to stealth rate cuts i.e. Oct/97 and 1/01 which took SPX up 50pts in seconds I find PPT opps almost transparent. If trading AC were just a battle between smart retail guys vs. stupid institutional guys it would be bliss. Not so though. When trading Corn one's going against commercial hedgers, foreign governments with their massive grain purchases and Jimmy Carter. In 1979 Carter's embargo against the USSR took grains down the limit for three days. It's the same in Gold. Do you have any idea how dominated the trade is by CB activity? It's our job to anticipate when the big guys have an axe to grind. Markets auction to size NOT to consensus. Big diff!
you are talking about an entire different operation. yes central banks participate in a lot of markets due to positions built by natural physical business e.g. gold ,grains currencies etc.there is nothing wrong with that. what we are talking about is different. the fed has no commercial stock holdings or should not have. they are not suppose to be in the business of speculation in stocks either way. i dont think the feds motto should be 'greed is good'
From Joe Ross Tradingeducators.com You have subscribed to Joe Ross' Weekly Chart Scan Newsletter. If you have problems reading this newsletter, please follow this link: Chart Scan Issue: March 2, 2007 - Volume 145 ****************** Joe's Trading Tidbits Who Controls Account 990N? COLLUSION AT THE HIGHEST LEVELS "...My firm and I have contacted the Merc on three different occasions with video proof that I recorded of my trading. It shows blatantly this guy crossing his orders thousands of times a day. The first person we talked to in compliance admitted that he saw something there when they reviewed the video of the trades I taped of him. He was mysteriously fired the next day..." -------------------------------------------------------------------------------- In 2001, a personal friend wrote: Only have a minute, but will write more later but...The entire S&P price action in the Futures is being controlled by one counter party. All the guys strongly hate them: their CME clearing number is 990N and they clear through Gelber trading. That one account is solely responsible for the current level of the S&P. They are the ones that are throwing the S&P up overnight. Then they are the ones that are sitting on the bid all day long, supporting the market action. The S&P pits have been decimated, absolutely ruined. There is no volatility, so all the traders have gone. Now the hot pit is the Eurodollar pit. Go figure, that used to be like watching paint dry. All the traders I have talked to view the market as being rigged. They keep waiting for the price action to break loose, but it never does. They are stunned by the lack of volatility. And furious. Time after time after time 990 just sits there on the bid. Don't they ever go away? They just absorb the entire market and then push the price wherever they want it to go. "Gee, I wonder who that counter party is." They are all terrified of shorting, because every time they do, they get drilled. I thought it was just my systems that weren't working that well, but they are far more dispirited than I. Intervention at its finest, your tax dollars at work, providing the ultimate tax to us all. We have watched 2000 contract market orders on the Bid at key down levels of -50 and -100 on those rare days when 990N decides the program trading will revert to a well-defined pattern of "allowable" retracements. The Mini's are being rigged in order to provide "support" for swollen price levels. They have to be for now, as without the daily rigging, "Price" would revert to its inherent "Value", a disturbing proposition to those benefiting from the financial economy's adolescent denials. Counter parties provide an important function in any exchange, liquidity. Given the incessant "intervention" by 990N, there is very little liquidity beneath these markets to provide real support. I am actually writing you to alert you to this complete market manipulation and to see if you had any pull to get the word out to different traders and the media. I am one of the biggest S&P traders in the world as far as volume per day in that I average over 40,000 round turns per day on the screen in the e-mini. I tell you this because that is how I know one house is completely manipulating the market everyday because of all the trades I do with this guy. I know it sounds hard to believe that one person can control a world market but trust me: this is occurring. He works for the firm Gelber, which is house 990. This is the basic premise for his game. He waits until the market is relatively slow, around 9:30 to 10:00 every day, usually when the "paper trade" starts to subside, then he begins a theme, mostly always long, and he begins to buy. He is always looking for confirmation of his theme with what other people are doing. When the market stops trading in his direction he then drops in an offer of 300 to 700 which he sees if anyone is interested in buying it. If there is no interest he then buys the order from himself, with the order actually trading. He does this enough times until he attracts other buyers which then hits price points and the market runs violently in his direction. I am sure I do not have to tell you that this is completely illegal to do. He started doing this with 300 lots back in November, now he has made so much money doing it that he is up to 2000 lots. He is completely in control of the market (illegally) the majority of the time. My firm and I have contacted the Merc on three different occasions with video proof that I recorded of my trading. It shows blatantly this guy crossing his orders thousands of times a day. The first person we talked to in compliance admitted that he saw something there when they reviewed the video of the trades I taped of him. He was mysteriously fired the next day. We then came up with more examples for them to review and in the beginning they claimed he wasn't doing it. We called them a third time, this time talking to the head of compliance, and he finally admitted that they had the guy under investigation because they saw something, but in the meantime he is still allowed to trade and make millions until their "investigation" is concluded. They obviously love the volume the guy is putting up and how it makes the emini S&P look from a standpoint of a liquid market. But if the public had knowledge of what this guy was doing I don't think they would be too impressed with the liquidity. There is obviously some kind of cover-up. Do any of the pit traders you know have knowledge this is happening? And do you have any advice on how I can anonymously get the word out with what this guy is doing? I know you are not a true tick by tick "scalper," but this is getting to the point where it is starting to affect everyone in the marketplace. Please let me know what you think. ******************************************************************** The story above is excerpted from a letter I received in 2001, from one of the best traders I know. The answer I gave him is that the action he was seeing is from the Plunge Protection Team, otherwise known as the President's Working Group on Financial Markets in the U.S. It includes the Secretary of the Treasury, the Chairman of the Federal Reserve, the Chairman of the Securities and Exchange Commission, and the Chairman of the Commodity Futures Trading Commission. You can find many stories on the Internet supporting the truth of this action and the existence of the Plunge Protection Team.You can also find stories denying it. However, it has been confirmed to me by floor traders as well as the detail from the personal letter above. I've been telling people about this since 1989. This is nothing new. My friend detected one or more of the members of the Plunge Protection Team (PPT), which has now gone offshore in order to not be discovered. PPT is made up of the largest brokerage firms, who prop up the market whenever the Fed tells the Treasury Department to do so. Nothing new here. First time it ever happened was 1987. Then again in 1989. I noticed it in 1989 and again in 1997, at a time when it became very consistent for a period of about 9 months leading up to the splitting in half of the S&P 500 contract so that the value of the S&P futures went from 500 times the index to 250 times the index, while at the same time the e-mini S&P was born. Dear friends, it happened again this past week.
'; to be honest as much as i hate to admit it that sounds like a black box system/ running. i see that kind of thing all the time in other markets. there is nothing wrong with offering against your bid to see who does what. crossing im not sure on the rules. it sounds like one of the big quant programs running
Should the Fed properly respond to a market calamity by lowering rates? When the Fed lowers rates it's Treasury shorts who wind up being punished. Like Ray Liotta said, "everybody takes a beating sometimes." CLEARLY then the Fed has an interest or axe to grind in the performance of equities. Why should stocks be treated differently by the Fed than any other asset class? Did the PPT stem the NASDAQ's 80% "correction" from 2000-2002? Or SPX's 50% break?