Saturday, February 6, 2010

TIN FOIL SATURDAY update II

We can sit around our fires today and relax. No market manipulation to discern and fight for our trades. Sure we know we have the right position ....after all we did our due diligence and it makes perfect sense and then the market sells off confirming our position AND the breaking news that day. We were short and then after the market closes .....more bad news...another breakdown in the world credit markets...you are still short and no positions were closed...All is good...Correct?? Nooooo. You are about to get your head handed to you by the PPT. Plunge Protection Team. Labeled Tin Foil Hat urban legend garbage by the mainstream financial media. How do the do it? Fairly simple actually. Put a billion into the overnight futures and ramp the E-minis pulling in sideline money for the opening squeezing shorts to hell. Simple process. Droke has a nice article on some of his readers comments.... here is a sample...

“Why did they let the markets crash in 2008? Simple, [it was] the last chance to get good buddy Paulson to pass out billions to his friends before he was out. Do you think Wall Street was left holding the bag or small investors and funds?

“Notice how the markets surge in the last few minutes of trading almost everyday so the markets show a gain. Would real traders really pass on buying stocks all day at a cheaper price and suddenly race to buy them at a higher price at day's end without some ulterior motive and absolute knowledge they would go higher?

“Goldman Sachs, which is about the 40% of US markets, had only one losing trading day in the third quarter. Do you believe that is luck? The only thing the government has going for it is a propped up stock market to try and fool people that something is actually good in this country.”

A reader from Canada had another take on the existence of the PPT and the possibility of market manipulation. He writes:

“The intervention of the PPT would be hard to disguise and would involve huge sums of money. It would be far easier to just jam the overnight futures on heavy down days. I followed this action closely back when we had those 200+ down days and you could see it in the S&P E-mini. At critical junctures you'd see huge buying which would trigger trading programs and other such automated nonsense. Once the turn was made the funds would pile in and you'd get a rally. All short term, but if you do it often enough that players notice, it discourages heavy shorting, which I believe is the goal. Just another version of don't fight the Fed, at least that's my take on it.”

In the previous commentary I also asked the rhetorical question, “Does the anti-PPT faction actually desire a market collapse and the Great Depression that would inevitably follow? And for what reasons? A love of anarchy and revolution?” Here is how one reader responded to this question:

“No! We desire a deeper market correction and, if necessary, another Great Depression that would reestablish normal, healthy and sustainable valuations of the markets, precisely to PREVENT the anarchy and revolution which is now virtually guaranteed by the constant interference by government in the once free markets.

“For example, after LTCM failed in 1998, the ramifications should have so severe as to have caused a cascade effect throughout the credit markets and triggered a long overdue recession. Instead we got the dot.com and NASDAQ bubble. When that bubble burst, we should again have had a much larger correction in the markets leading to an even bigger recession, or possibly a multi-year depression to clear out all the dead wood and bad investments. Instead we got artificially low interest rates and an even larger real estate and commodities bubble. Inevitably that bigger bubble burst, so now we have 0% interest rates as far as the eye can see and they are sowing the seeds of a hyperinflationary depression, which might cause a breakdown in society, food riots, marshal law, civil war, etc.

“So, no; I am NOT thankful that the PPT has stepped in to ‘save the day’ because while they may have saved “today” they are just delaying the inevitable utter destruction of ‘tomorrow’.”

http://news.goldseek.com/ClifDroke/1265353380.php

update I :

Looks like the BOYZ were busy this evening....

http://news.yahoo.com/s/afp/20100206/wl_canada_afp/economyfinanceg7canada

update II 0320 2/7/10 : Busy busy busy boyz this weekend....wonder if we get a weekend announcement.....this secret chit smells of PONZI REPAIR

http://www.news.com.au/business/secret-summit-of-top-bankers/story-e6frfm1i-1225827289543

20 comments:

  1. One of your better articles. Nice not to hear about gold for once.

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  2. Hey kli always appreciate your input on this blog and the Yahoo mb. I wish they would just let things washout , suffer the extreme pain and live with the reality. At least at that point we MAY know where we stand and we could start working on building a far better reality as opposed to the fantasy in which we currently reside. Keep up the good work.

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  3. ‘save the day’ because while they may have saved “today” they are just delaying the inevitable utter destruction of ‘tomorrow’.”

    Absolutely. But not this year.

    Take a real good look at yearly gold and miners charts and you can see that they are not following the market they are leading it. Both topped ahead of the market and have declined prior to the market.

    If we get confirmation on Monday of Friday's turn in gold and the miners and if the pattern holds, then we should see equities follow in short order.

    The dollar is the key.

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  4. Watch dollar move mon tues....and gold. for confirmation. pay close attention to miners volume .......must be above average

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  5. Of all those charts, SWC is the one we should be hitting here for a swing if this is a legitimate move. It looks essentially like the last big wave up that we had at the start of January. Good article and posts above. - Analyze.

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  6. Total breakdown in GS and JPM recently indicates overall market breakdown. My feeling is Friday afternoon was orchestrated, using the pre-weekend short covering to assist in pulling the market up. May carry through until Monday, especially if PIIGS issue is resolved over the weekend. If not, I'd be looking for a reversal to the downside at some point Monday, Tuesday the latest. Strength of miners on Friday was impressive though so perhaps there's a rotation beginning that will see the miners outperform the overall market, regardless of what the dollar does.

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  7. Anon, based on current trend we saw about half of the maximum expected move up before another leg down, unless this is a trend reversal or trend change into more of a consolidation level. I see no reversal sign across most of the indices, but tech and precious metals will be downside laggards for the next leg down. Good post, use a name so we know who you are going forward too. - Analyze.

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  8. Okay let me edit the above to make it comprehensible - we saw about half of the move max expected move up on Friday's end of day short covering... - Analyze.

    I'm also aware a stealth reversal could be buried in that action, but I see little to indicate that to be true as well.

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  9. Maybe I better stop posting, that was even worse. Let's try again. We saw about half of the maximum move up that could be expected based on the current downtrend, based on the end of day move Friday. -Analyze.

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  10. and one more thing to note that may be relevant. If you check the COT reports for gold, silver, and the dollar as of February 5 (prev Tuesday data), the commercials are lightening up on their PM short positions and going heavier on their dollar shorts. If you are one who likes to follow the money, that's one place to look.

    http://news.goldseek.com/COT/1265401937.php

    Since Analyze asked, I'm going with...

    -C

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  11. PPT is real. This has been known since 9/11 when it went public on live TV. Prior to this, anyone who mentioned it was quickly labeled a nutjob. You know, the usual fascist-controlled media psy-ops to keep you stupid, and paid for by your own tax dollars. Tell me something new.

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  12. Of course PPT is real......but the irony of even discussing it is that the mainstream business media is so controlled by it that they maintain it does not exist to this day. ANYONE with any longevity has seen various documentaries that chronicled the 87 crash and heard Greenspan SAY that they bot SNP contracts.....not only that it was officially titled the Presidents working Group after 87 crash..Paulson even openly stated back in octobe 08 that he had just left a meeting with the Presidents Working Group ON camera

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  13. We could get another +5 or more S&P points on the upside Monday, but the maximum springboard effect effect towards the 200 week moving average at S&P 1230 still requires a move down to a minimum of the 1025-30 level in order to play 2-3 month grind up to 1200 (where the 200 wma will be in about 2-3 months. Otherwise if Friday was the short term low, you will get a lower double top playing out over the next 1-2 months and then sideways to down for the remainder of the year. Take any strength in the Dollar to diversify out of US paper assets.

    Oh don't let the trolls goad you into trading more than you have to, emotional trades then to be losing trades.

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  14. trolls? what trolls?....Red with GS in control I cannot tell the trolls apart.......right now will trade around my miners core which is too large.....butcha cant trust the boyz to drag it too much lower....but I totally agree ...they should bring it down to at least 985

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  15. here is the real number match I love....gold and Snp.......running right in tandem

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  16. Red thats the scenario I am watching. small bounce to 1070/80, drop to 1030/40 and then they run it up. I hope GS is following my play book. hehehe

    I dont believe in trolls only thieves dressed as trolls

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  17. Kli I am guessing the EU Central bank will bailout the PIIGS but the bailout will come not with strings but chains that will further weigh down their economies. Then a rush to the dollar until they realize the emperor has no clothes and then we have the flight to gold and it disconnects from the dollar and the markets.

    this is just one possible scenario I am watching for. but I dont see any of this until after Nov.

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  18. Red one of the two scenarios you have will play out, if the consolidation range is the target, it will be obvious pretty soon as it runs directly to 1150 from here, then rolls over. Also agree on the lower pound for it to have the mojo to punch out to new highs. The best thing to do is have plays in mind for each of the possible scenarios and adjust. Trolls are irrelevant if you have tight TA and trading skill. - Analyze.

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  19. Edit, lower "bound" not "pound". - Analyze.

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  20. EU to continue full speed ahead....

    http://news.yahoo.com/s/afp/20100206/wl_canada_afp/economyfinanceg7canada

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