Friday, May 14, 2010

So, I Was Right About the Fraud, Right?

OK, I hae stated my case all week. The case of the skeptic, of the cynic, of the personwho believes those who run big firms and those who execute trades for those big firms are among the most dishonest, corrupt, incorrigible people to ever set foot upon the planet, and it is they who are responsible (in cahoots with certain government agents) for the "flash crash" of last Thursday and much of the subsequent market action afterwards.

You can look back over the past six days of posts and my story doesn't vary. Insidious insiders caused the meltdown and bounce last Thursday, May 6, 2010, walked stocks further down on Friday, May 7, and knew full well that the EU would not only bail out Greece, but that they would approve a nearly $1 Trillion rescue package over the weekend.

When the market spiked 400 points at the open on Monday, it was they who benefited and it again is the very same people who have been selling at ridiculous short-term profits all week.

Here, for your reading and dancing pleasure are the numbers:

Thursday, May 6: Right around 2:30 in the afternoon, the Dow plummets suddenly, about 600 points, for a total downdraft of almost 1000 points, finally bouncing off 9,787.17. Just as quickly as the market fell, it rebounded. Traders and individuals are stunned. The Dow closes at 10,520.32.

Friday, May 7: Already confused and afraid, market participants sell out of fear that there are nefarious forces at work and they are correct. Dow closes at 10,380.43, a 10-week low.

Monday, May 10: EU approves monstrous bailout for member nations nearing default. Market gaps up 400 points at the open, benefiting only those who bought in on Thursday or Friday. Dow closes at 10,785.14.

Tuesday, May 11: Stocks moderate as insiders quietly begin selling shares. Dow closes at 10,748.26.

Wednesday, May 12: In what looked very much like a short squeeze, insiders maximize profits by boosting the Dow another nearly-200 points. Dow closes at 10,896.91.

Thursday, May 13: Selling now commences in earnest as insiders ramp up trading. Dow closes down 114 points, at 10,782.95.

Friday, May 14: More vigorous selling, with a bottom intra-day at 10,537.25. Dow closes down another 162 points, at 10,620.16.

There you have it. From Friday's close of 10,380.43, after all the obfuscation and hoopla, the Dow bottoms a week later at 10,537.25, a minuscule 157-point move, with plenty of action (for thieves, crooks and criminals) in between.

I've said it before, but the action of the past week confirms that Wall Street is no place for individual investors. There are far too many sharks in the waters to ensure safe swimming.

Dow 10,620.16. -162.79 (1.51%)
NASDAQ 2,346.85, -47.51 (1.98%)
S&P 500 1,135.68, -21.75 (1.88%)
NYSE Composite 7,077.64, -156.73 (2.17%

Decliners beat advancers, 5600-989. New highs barely edged now lows, 101-87. Volume improved a bit over Thursday's levels, though with the market pointing down, that's an ill-boding omen.

NYSE Volume 6,872,919,000.00
NASDAQ Volume 2,596,956,000.00

Oil was splattered all over the trading pits, losing $2.79 on the session, to $71.61, a 12% decline in a month, though gas prices are still at or above the levels they were two weeks ago, when crude was $86/barrel. Motorists are neither stupid nor amused at this non-conforming development.

Even the metals settled down, with gold losing $1.40, to $1,227.40 and silver off 27 cents, to $19.20.

A wild week, unless you were paying attention at the end of the prior week. Then you saw the raw greed and corruption that is part and parcel of today's trading environment.

It stinks. People should be going to jail. Unfortunately, the government is likely in on the game.

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