Market Manipulation

[coolhand]

http://traders-talk.com/mb2/index.php?showtopic=34333

[grandma]

Coolhand: how does one `postion themselves accordingly' in a manipulated market? . ...particularly any who have difficulty keeping even Broad Concepts in tune?

[coolhand]

I really liked this guys postand I have no problem with his logic at all. I have noticed much of what he wrote about, but could not havearticulated it nearly as well.

In response to your question, grandma, I have decided to play this market cautiously by not being fully invested unless I can see a true, driving catalyst (see my recent post in my account talk thread) that can propel, or at thevery least trend this market higher. For that reason I plan to keep a larger portion of myTSPparkedin the "G" fund (perhaps 50% by the end of next week).

Market fundamentals have really not changed. Their forces arestill pulling in different directions. Inflation not a problem this week?...just wait till next week. Oil a problem today?....wait till tomorrow. I'm sure you get the picture.

And on top of all that you have a (not so) hidden force pulling some strings. Of course you have to buy into this logic.

I'm ready to justsit back and wait for the market to tell me when it's time. That and I'm keeping an eye on what ST does. :^

[Dave M]

"And what better way to maintain investor confidence than to make sure the stock market doesn’t go down by tossing the Treasury’s unlimited resources at it?"

And yet, it has gone down. After 1987, they acted to limit the effect of programmed trading by limiting the 1-day movement in the DJIA to 500 points. Isn't that true? If the average drops by 500 points, they will shut down trading for the remainder of the day. Such is my recollection, I could be wrong.

Besides, everyone tries to manipulate the market. There are legal ways and illegal ways. If you controlled a multi-billion-dollar fund, you would use your weight to create conditions favorable to your clients, if you could. Wouldn't you?

Dave

[coolhand]

Dave M wrote:
Besides, everyone tries to manipulate the market. There are legal ways and illegal ways. If you controlled a multi-billion-dollar fund, you would use your weight to create conditions favorable to your clients, if you could. Wouldn't you?

Dave

Yes, manipulation does occur, but not on such a grand scale. Besides Dave, the post isn't about fundmanipulation, it's about "market manipulation" on a large scale.This includes currencies. What happened in 1987 only set the stage for future interventionand is darn near ancient history at this point.The rules could change and we would never know it.

The real point here is to merely be aware that this may be happening.

[Dave M]

Well I wish they'd get busy and start giving us more "up" days! I got a train to catch in 2010, heh.

Dave

[coolhand]

I hear ya. :)On one hand if this is really happening then maybe we should feel safer. But on the other hand it can alter the results of any investmentdecision made regardless of how much homework one does.

[coolhand]

http://traders-talk.com/mb2/index.php?showtopic=35615

Market manipulation part 2.

If nothing else I enjoy hearing something a little further removed from the usual banter of analysts.

[Spaf]

Coolhand....Read your article. It could be fairly well on track. I've heard similar news that the babyboom generation could be in trouble as they get to the door of retirement.

[coolhand]

Spaf wrote:
Coolhand....Read your article. It could be fairly well on track. I've heard similar news that the babyboom generation could be in trouble as they get to the door of retirement.
Trust me, I've read it and it resonates with me. The rules have indeed changed.

[coolhand]

http://tinyurl.com/cul4h

[coolhand]

http://www.safehaven.com/article-3428.htm

Interesting times we live in.

[coolhand]

http://www.atimes.com/atimes/Global_Economy/GJ19Dj02.html (http://www.atimes.com/atimes/Global_Economy/GJ19Dj02.html)

[coolhand]

http://www.safehaven.com/article-4108.htm

[tsptalk]

Interesting article coolhand.

"Why? It's simple, really. So that the Plunge Protection Team can hide its market manipulative, equity buying activities."

Come to think of it, we don't seem to get those big 300 - 500 point loss days like we used to. Plunge protection?

"When we presented the Hindenburg Omen analysis several weeks ago, we warned that the PPT would likely buy this market to stop the higher-than-normal probability that the market could crash. Why did we warn that the PPT would likely buy this market, and stop any potential crash? Because of the M-3 numbers"

[coolhand]

Tom,

Your view that 2006 is shaping up to be a big year for the market actually parallels the kind of activities that article describes, or so it seems. I am expecting a big year too.

"You see, the PPT only needs to kick start the buying. Then the shorts buy. Then the Hedge Funds jump on the bandwagon in search of that elusive trend - either up or down - deciding it is going to be up, and keep the rally going. But by the time the Hedgies are buying, the PPT is able to get out (and their Wall Street friends who took the risk and bought with them early) at a nice profit, the shorts are out licking their losses, and we watch a waning rally with low upside volume, low advance/decline ratios, and a high number of New Lows - kinda like right now."

Sound familiar?:?

This next paragraph decribes the proposed change to mortgage tax breaks. It doesn't seem so bad on the surface, but that's at the current interest rates. Whatabout all those folks who still have ARMs? They will no longer get to deduct the full measure of that interest, assuming mortgate rates continue to rise. Of course this is still down the road a ways, but I would certainly want to get a fixed rate if I didn't have one right now.

"It means encouraging Joe and Jane Middle Class to borrow up to their eyeballs in debt to pay for basic necessities after their family job was exported overseas, and then once Joe gets on his feet again with a new lower paying job, yanking a huge chunk of the interest deduction on all the home equity debt he was encouraged to acquire so he has to bear a larger share of the nation's tax burden so Corporations can keep their breaks, and even get new ones."

[coolhand]

Another interesting blog on killing M3.

http://tinyurl.com/7mbe3

[coolhand]

http://www.gillespieresearch.com/cgi-bin/bgn/article/id=712

Sorry if this seems like I'm beating a dead horse, but I probably follow the fed closer than any other aspect of the market. To me it's like looking into the future, albeit a hazy one,and I see this particular situation as worthy of close scrutiny.

[coolhand]

http://tinyurl.com/28463

This may have been posted before, but it's a good read.

[coolhand]

While Irecognizethat I'm a novice trader, I believe the market dymanics are in the process of changing again. The rules of the game are going to shift. It's not just my opinion, but some other folks who've been in the market for decades as well.

The discontinuation of M3 is a telltale sign IMHO.

Conspiracy theory my butt!

[grandma]

This article made me think of us chasing after our Fianciers - except they haven't hit any dead-end street -:l

http://www.ananova.com/news/story/sm_1622379.html

(http://tinyurl.com/9ehr2)

[Bullitt]

In case you were looking to try manipulating the market, here's a 'how to' document.

This is probably happening today:
There’s also nothing new about disinformation in the market place. But again, the scale was unprecedented. Sumitomo moved hundreds of thousands of tons copper out of European LME warehouses to make inventories look like they were disappearing. Meanwhile, the material was afloat or lodged in a warehouse not registered with the LME. A Chinese Government trading company took 100,000 tons off the market; when prices dropped, it became a “national stockpile.” Some was parked in Singapore and Korea . http://www.materialsmanagement.net/modern_mkt_manipulation.htm

[coolhand]

In case you were looking to try manipulating the market, here's a 'how to' document.

This is probably happening today:http://www.materialsmanagement.net/modern_mkt_manipulation.htm

Boy, you dug back a few years to pull this back up. :laugh:

[Bullitt]

Yeah, I actually was wondering if that was the same Coolhand!

[coolhand]

Yeah, I actually was wondering if that was the same Coolhand!

I don't get into all that stuff anymore. I've evolved. :laugh: