Sunday, July 19, 2009

Stock Market Review - 7/17/2009

The PPT Never Sleeps

The stock market is pretty simple. Now that the central bank has taken over the government of the US, they have also taken command of the stock market. As the Dow and the other indices rolled over in early July, the PPT heard the cry of Dow 8200. The bearish head and shoulders was in place. As soon as 8200 was breached, the alarms went off and the PPT swung to action. Emboldened by the fantastic earnings of Goldman Sachs, the PPT helped boost the markets back up. I have to admit that when I heard the earnings of Goldman, I honestly felt like vomiting. I felt physically sick. Two quarters back they were losing money and searching for bankruptcy lawyers. Then Treasury Sec. Paulson ran the coup with the Fed and wrestled tax payer money from the US and gave it to Sachs. Presto. They report positive earnings again. Well, it's not so much that they reported positive earnings. The second quarter of 2009 was the best in the company's 140 year history. Are you kidding me? Have they any shame? They are simply rubbing our noses in the coup. I still have the taste of vomit in my mouth. So now we have a rally instigated by the thieves of the world. Woopi.

Friday, July 17, 2009, was an interesting day. The week's rally threatened to end on a down Friday. Well, not while the PPT was on duty. As you can see from the charts below, the indices came roaring back at the end of the day. And, I mean in the last 30 minutes of a July Friday afternoon. I thought traders went home early on Friday. I thought most real 'trading' wound down long before the Friday closing bell. Not this Friday. There was a strong rally with very strong volume. Gee, I wonder who was trading all that volume going into the final few minutes of the day? The PPT does not go home early. Why do I drag the PPT into the conversation, you may ask? The first chart is the S&P 500 and you can see that it finished slightly down after a strong final few minute updraft of desperate buying by somebody. However, I have always suspected that the PPT uses the futures market to manipulate the markets. Sure enough, the second chart shows that the S&P futures ETF, the SPY, actually made it into positive territory with the strongest volume of the day coming in the last 30 minutes of Friday afternoon trading. Shazaammm!!!! Is this the ultimate green light to put all of our money into the stock market and trust Ben Bernanke and the PPT to act as our trampoline? It would seem so. I'm going to go vomit now.

Chart courtesy
SPX 1-day 5-minute bars 7/17/09

Chart courtesy
SPY 1-day 5-minute bars 7/17/09

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