Posted on 03/06/2009 12:18:43 PM PST by Red Steel
Stocks fell to further 12-year lows on Friday as a bearish brokerage view on Apple Inc prompted a sell-off in technology shares and overhanging fears about the banking system's future weighed. A 6 percent slide in Apple shares helped drag the Nasdaq to a 6-year intraday low, while the broad S&P 500 was on track for its worst week since October.
(Excerpt) Read more at finance.yahoo.com ...
People covering their shorts in anticipation of a bounce, perhaps. The last couple of days, I’ve read opinions in a few places warning people to cover their shorts.
Maybe there’s some positive news out there making its way around the trading floor which we haven’t heard yet.
You are bound to get more violent upswings when the market has been so pummeled as it has been. 150 points in 30 minutes is not really that big a deal from what I’ve seen in the past several months. That can happen in 5 minutes if conditions are right. If the PPT really exists, they’ve been asleep at the switch. I doubt a 150 pt. drop today would be the catalyst to wake them up. I mean, where were they yesterday?
Our government is spending money like a terminally ill Billionaire and the socialist are taking over the government. What possible good news is there?
http://www.dailymotion.com/video/x32cxf_yuri-bezmenov
Obama tanking the economy on purpose, this guy agrees with you.
What possible good news is there?
I think people are dying to hear even the smallest shred of good news and act on it. Obama and the DBM have tag teamed to make sure that we stay in a panic stricken, fearful mood. Much easier to corral the sheeple when they’re panic stricken and get them to rely on the gubmint.
Possibly the PPT (Obama) in action?
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"For the past several years, we have seen repeated “out of the blue” short-covering rallies just about the time a decline seems to be gaining some momentum. Our suspicion has been that the “Working Group” established by law in 1988 to buy markets should declines get out of control, has become far more interventionist than was originally intended under the law. This group has since been dubbed the Plunge Protection Team [PPT].
There are no minutes of meetings, no recorded phone conversations, no reports of activities, no announcements of intentions. It is a secret group including the Chairman of the Federal Reserve, the Secretary of the Treasury, the Head of the SEC, and their surrogates which include some of the large Wall Street firms. The original objective was to prevent disastrous market crashes. Lately, it seems, they buy markets when they decide markets need to be bought, including equity markets.
Their main resource is the money the Fed prints. The money is injected into markets via the New York Fed’s Repo desk, which once upon a time showed up in the M-3 numbers, warning intervention was nigh. But, in November 2005, the Fed announced with little comment and no palatable explanation that it would no longer report the M-3 number after March 2006. Without the useful resource of M-3, we needed to find other tools to monitor when the PPT is likely to intervene, prolonging a rally and killing shorts.
For the PPT to be effective in driving markets higher, the potential for a sustained turnaround rally depends upon a high volume of open short interest."
http://www.gamingthemarket.com/2009/02/how-to-trade-a-ppt-day.html">
Energy stocks spiked up in the last 30 minutes.
Zero: It’s the President’s name ... is it also the DJIA’s destination?
Energy stocks spiked up in the last 30 minutes.
Sorry for the double post.
Let's see, M3 = M2 + large time deposits, institutional money-market funds, short-term repurchase agreements, along with other larger liquid assets.
So the PPT did a short term repo agreement to rally the market? How would that work exactly? The stock repo wouldn't cross the trading floor. It wouldn't soak up any of the sales hitting the NYSE. It wouldn't spark a short covering rally.
All it would do is add some short term liquidity to the counter-party. Would they run out and buy millions (tens of millions?) of shares of stock, knowing they have to give the money back in a day or two (maybe a week)?
I think if it wasn't for the PPT we'd already be much lower. I'm betting they've been engaged throughout.
A modest rise at week's end smells of people closing out shorts for the weekend.
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