US government going to control markets ?

Discussion in 'Trading' started by HedgefundTrader2, Mar 16, 2008.

  1. Treasury Secretary Henry Paulson, defending the bailout of Bear Stearns Cos., said policy makers will do whatever is needed to prevent disruptions in financial markets from hurting the economy.

    ``The government is prepared to do what it takes to maintain the stability of our financial system,'' Paulson told the ``Fox News Sunday'' television program in Washington today. ``Our focus, our No. 1 priority, is the stability of our financial system.''

    Now you know why SPX doesnot crashes and burns? It has revisited 1270 area 6 times since Jan 22nd 2008 and it stops on a dime. Feds buying SPX futures ? Feds trading like an institution? Treasury department investing money and manipulating markets ?
  2. "The market' s gonna go where it's gonna go" said Paul Tudor Jones.....with or without the FED. Multiple extremes tend to be busted. We'll see if the market is able to "probe" below 1270.
  3. nevadan


    If the gov is meddling in this way they will eventually get their head handed to them.
  4. Where were they when the s&p was @ 800.58 in 2003?

    Let me guess, you sold the spooz @ 1527.46 in 2000, and bought @ 800.58 in 2003.
  5. Wow a big hedgefundtrader like you doesn't (not doesnot) know the more times support gets hit, the weaker it becomes? When it finally gives way the resistance is all that much hader to break through? I thought that was trader 101, Maybe you don't (not donot) work for a hedgefund afterall? That would be my bet.
  6. That may be true. But 1270 seems to be one helluva tough support for SPX to break after 6 tries in 6 weeks. When price cannot break support or resistance it reverses in the other direction. I thought you knew about such subtle things in Technical Analysis ?

    If SPX cannot break support at 1270 it can only go up from here. SPX has a piped bottom here, made on Jan 22nd 2008. Piped bottoms or they are called railroad ties, in William O Neil's books are tough to breach patterns and very tradeable.

    The odds are with a Fed rate cut it will certainly do that.

  7. People who tried to do that end up in Jail. Home land security is watching you.
  8. nevadan


    You seem to have missed the point. If Treasury etc. are manipulating the market like the OP implied, then they are the same bunch as HS and it is OK because it is official. The PPT and others of their ilk MAY be manipulating the market at times. If they are they will continue until they go to the well one time too many. Once they manage to destroy the dollar then the rest of us will pay.
  9. The PPT are going to begin a campaign to rid the world of stock shorts and to strong arm powerful individuals to support their ideology.

    Those who short will be doomed to a fate we ForEx traders refer to as Bucketshopped. Those who doubt their existence will soon be paid a visit.