It is as much of a conspiracy as the specialists gapping up stocks, shorting the hell out of them and bringing them down below the previous days close as the know it all traders try to rationalize it with technicals & fundamentals. It's simple market operations and the government has admitted to it. I vaguely remember the article which was posted right on ET a few months ago where one of the officials was interviewed and he stated that the Fed did start stepping in after seeing the 1987 crash. It's just common sense, almost every other country with a stock market does it as well as with the currency market. Who cares when they sell it, it is just inventory control, just like with the specialists and MMs. For all we know, they sell it at a "loss" at a much later day but it does not matter because it is about controlling a decline. If you consider this a conspiracy, you should not even be trading. The bullshit NYSE & Gang has pulled these last two days tops any type of "conspiracy" the Fed ever had. The largest market in the world, the currency market is rampant with manipulation from countries fighting for purchasing power and traders calling their bluffs.
I try 2 keep a civil tone in these forums but this one pushes me over the edge........anyone who has been a Trader/Dealer, and I'm not talking $5,000 in a E*Trade account sitting in your basement while ur mom makes u a PB&J upstairs but a real dealer knows the fed does manage the market whenever they feel the whim. As a currency dealer for a money center bank we were obliged to qoute the Federal Reserve in whatever amount they saw fit when the dollar was rising falling too fast for their liking the fact that they wud even call out wud steamroller the market in whatever direction they wanted. Iif u didnt cover in the same breath you could find yourself in the hole by $50K or $100K depending on the amount ,........ if that isnt managing the markets I dont knw what is ..... and it is SOOOOO outrageous to believe it happens in SP NQ .............
ignorance is bliss isn't it ? don't you realize what the floor specialist job is? to make sure he creates a market in a stock in what ever means is necessary. they would never do anything unethical. do you believe in the tooth fairy?
Trust me, I've been caught short in stocks and up nicely just to see all that dissapear and take a huge hit when the S&P magically rips to the sky. It's just a good quote and funny when you imagine all the traders doing their thing as the Fed comes out with huge steamroller and demolishes everyone in their path. USA is still the most powerful country on the globe so I'm sure they can do whatever they want to any market.
No his job is to control inventory, provide a liquid market, control extreme moves and imbalances & fill big customer orders. Once you add a personal investment account into it, all of that changes. I agree with the specialist system but am 110% against how the majority of the specialists conduct their business. It is all because they have a side investment account with which they screw EVERYONE out of psychotic greed and bitterness. It's not like they are struggling for income like some MMs are, these mofos are FILTHY rich.
Anyone who was down on the floor and witnessed the Missiles (MMI futures) going to a huge "premium" while there was a program trading halt and other derivative markets were "halted" at big discounts on the Tuesday after "Black Monday" in 1987, would attest to the Plunge Protection Team. I'm not a big fan of conspiracy theories, but on that particular Tuesday I certainly was one! :eek: