I know this is an old topic and I mentioned this in an earlier post, but I think there is growing pressure for full disclosure regarding the US governments possible manipulation of the equities market. Watch this Charlse Bidderman interview.
I share this as an example of two things. First, it gives good insight to the "general market conditions". In additional to unlimited liquidity, the markets may simply be rigged to the upside. It is hard to be short. Having said that, this very well be the undoing of the markets. If it is determined that the FEDs intervened by manipulating the futures market, all confidence in the market will evaporate and a major selloff will occur.
For now, it is merely speculation.
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7 comments:
Dave,
You might remember Jesse Livermore's anecdote about being summoned to the White House due to his huge short position of cotton (I think).
He "dropped" this position costing him millions, because of the political pressure. His lesson was there are always outside factors manipulating the free market.
Politics is one of them. Bet on it.
One of the reasons so many bulls are so happy lately, they have friends in high places. Bears have never ever had any kind receival.
As they are the wicked "speculators".
Paulus,
It is a great book and yes, we are speculators - but the wicked ones are the manipulators!
Our job is to be intelligent about our speculation. Jesse was the master short - but he uderstood the conditions. He shorted when money ran dry. Today, there is no shortage of money so I adjust my stance and swap my shorts for puts as this latest reaction exhausts - perhaps in the 1130ish level...
Money is not short, but the trust of it is. Take a step back.
Hey CBS,
You may be right concerning the trust of money, however it is presently abundant and the only game in town. The chances of replacing the fiat currency with a commodoties based standard are unfortunately low. We have to win with the tools we are given and on the field that we play.
We hit that 1030ish point and I sold some 112 put options on a portion of my SPY shorts. Front month of course - so there are 3 trading days to go and we'll see if they get assigned. There is a decent chance and I would not be upset if it happened.
David , When I have been ask about the audit the Fed Bill , I have responded ,
We cant handle the truth.
Funny thing about the truth it has a way of getting out .
I have held there Central Banks including our own have played the market sense May , there was a Bloomburg in May with A Greenspan , commenting on how the Asian central banks did so well it stock market entry in the last time around.
Even is the Fed is not pushing the Keys , where did the GS and Big guys get the money to push the Keys , FED.
FED , Alfa and the Omega
Hey Payline,
All it takes is for the public to become clear that the stock market is currently a rigged game and that the government has blatantly destroyed the ideal of a free market. It will come tumbling down and I am not sure that it will stop. This is an example of a political scandal that can set the wheels in motion. It is inevitable I believe - though the bursting of the China bubble will serve as their cover as they scramble to cover their tracks when it fails.
David , I think we see that same thing it is not pretty and it will end badly.
Today was refreshing , but will be hollow without follow thew .
We did not Break the support line , hit it twice no break .
The Dji , really look corrective
We know all soon ........
Good Luck Everyone
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