Thursday, February 12, 2009

The Plunge Protection Team is at it again!

All charts courtesy
Ta-da! February 12, 2009 - The Dow was in serious trouble as it plunged 238 points to the mid-point of the 20-year double top. This is the dreaded 7500 mark and technicians know that if we breach it, the Dow inevitably goes below 1000. Not to worry. The Plunge Protection Team saved us on November 21, 2008 when we pushed the 7500 mark with a miraculous last hour of the day triple digit rally. That rally came after 3:00 pm on a Friday afternoon will heavy volume. So again, right on queue, we got a 232 point rally in the last hour of the day. Our government wants to control every facet of our lives. Excuse me. I need to go to the restroom right now and I fully believe Bernanke will be there to, uh..., well, help me out. Maybe he will feed me and clothe me. I'd hate to think that I have even one single responsibility anymore. I certainly don't need to watch my investments. Bernanke and the PPT are always there to save me! The chart shows the Dow with today's magic rally and also the magic rally of November 21, 2008.

Now, look at February 12, 2009. This is a one-day chart of the Dow with 5-minute bars. It is easy to see that at 3:00 pm, everything changed. Straight up we went with only two breaks in the uptrend. I assume these were the moments when the PPT had to reload the ink jets. We must also note that the PPT are late risers. They don't generally like to start their market manipulation until late in the afternoon. My guess is they also call their banker pals to let them in on the gag. There is no 'market' anymore. We are in an era of pure governmental manipulation. Another indication of PPT activity is the broad effect of their sudden buying binge. Sure the Dow recovered and that makes the bulls feel smart. So what. Everything on the planet went up as well. Here are a few other chart observations.

This is the Dow with its ridiculously manipulated look using 60 minute bars on the same day:

Of course, the PPT buys everything at exactly the same time with exactly the same ferocity: This is Australia -

This is Spain -

Here is the good part. The stock market can be saved. The PPT has demonstrated this time and time again. Zimbabwe saved theirs Since we are following the Zimbabwean model of economic destruction for the sake of the banks, we know that throwing jillions of dollars at the market makes it go up. Unfortunately, that makes the dollar go down and so too, all dollar denominated assets like our houses. Thanks, Ben! Here is a US dollar ETF -

So, when America is finally burnt to the ground, we know the identity of the true arsonists. Capitalism is a beautiful thing. It provides balance. It eventually punctures speculation and it rewards prudence, intelligence, and strategy. Since the surrender of our former government to the bankers, capitalism has been struck a death blow. The bankers don't want to let capitalism find the true value of their 'toxic assets'. It could be zero. They would rather sacrifice all of us than admit to their folly. Our elected officials are hard at work surrendering to these con men. They are desecrating our Constitution. Let their names be etched on the 'stimulus debt shovel' that buries us for eternity. Let the charts show their actions like the droppings of vermin.

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