This was a headline at the close of Friday's trading. I have to ask, 'what is so 'dramatic' about the Plunge Protection Team intervening in the markets'? The Dow fell to below 10000 on Friday. What did anyone expect? Of course the pathetic enablers of stock market gains had to intercede. Dramatic? Hardly. The PPT does this all the time. What else could possibly keep the market up? Earnings? Ha - don't make me laugh. Those are manufactured by accountants that live in India. Fundamentals? Please - the world is bankrupt. The slide that started in January was instigated by troubles in Greece. Of course, when there is trouble in the world, the US dollar ascends. When that happens, stocks drop.
The chart below is the intraday chart of the rising dollar etf, UUP. The markets started sliding south at the open and by 2 PM, had dug a 150 point loss hole for the Dow. Yes, it was even trading below 9900, much less 10000. What could stop such a plunge? Yes of course, the plunge protection team. We know this group does not like to get up early. At precisely 2PM, they started their charge. In the flash of an eye, huge volume hit the market to the upside. In a lurch, all indices jolted higher. It was a struggle but by the end of the day, everything was up. Yes, the dollar began selling off at precisely 2PM. There is no way to rally the Dow unless the dollar drops. So, all the dopes will open their paper on Saturday morning and see that the indices all finished in the black. Nevermind there was a titanic turnaround engineered by the most pathetic government in the world. Nevermind they have to 'fix' everything'. Nevermind they have to turn the market into an artificial quagmire of nonsensical rallies. Nevermind that investors had become fearful that financial difficulties in Greece would be followed with the same in Portugal and then Spain. Spain of course, has an admitted 20% unemployment rate along with higher deficits than even the US. Nevermind Spain might default on debt. Alas, at precisely 2PM, the etf that correlates to Spain also lurched higher. I would show you the chart but it gets boring in that every chart from every sector from every part of the globe is identical. It only makes one wonder what the real level for the Dow should be since the Fed feels obligated to try and support the market every couple of days. I would say they are just pathetic. There is certainly nothing 'dramatic' anymore about Fed intervention. We are the most plastic, controlled, connived, manipulated, bogus economy in the world. Thanks, PPT!! What will our joke of a 'market' bring next week. Sadly, absolutely nobody knows. Random rallies for no reason do that. Eventually, no one will want to play. Thanks, PPT!!
2/5/10 - intraday UUP in candlestick, SPX in gold
Chart courtesy StockCharts.com