Tuesday, October 4, 2011

Fantasy, Engineered Rally from PPT Saves Stocks from Bear Market Territory

To believe that a late-day rally, sending the Dow Jones Industrials from a loss of over 200 points to a gain of 150 points in the final hour of trading, is anything more than make-believe, engineered by the Fed, Treasury and other member's of the President's Working Group, aka, the Plunge Protection Team (PPT), would be sheer folly.

This latest move by the market manipulators is so blatantly contrived and designed to keep the American public believing all is well that is defies explanation. One of the headline stories on Yahoo News, Stocks Avoid Bear Market Territory Thanks to Late Day Rally cites "vague assurances from Federal Reserve Chairman Ben Bernanke" as the cause for the rally, but never goes on to explain just what those "vague assurances" are. Surely the editors made up the line since the eminently-powerless Bernanke was testifying before the completely-clueless, corrupt and complicit congress today.

Sounds good, but we're not buying it.

The S&P was the real target. At 3:15 in the afternoon, the S&P was nestled comfortably in bear market territory, down roughly 20 points at 1080. By the end of the session, just 45 minutes later, the index was sitting at nearly 1024, a 45-point move in 45 minutes. At that rate - a point a minute - the S&P should be in record territory above 1550 by noon on Thursday, so hurry up and load up on those stocks, kids, the good times are here to stay!

This market is rubbish, as is the US government and our once-healthy, but now debt-ridden, jobless, service economy. Anybody invested in stocks with money that is for serious puposes should be seeking professional mental health advice. US stock markets have been called casinos, but that description gives casinos a bad name.

That's all this writer can stand for today. OK, a little more...

The number of new lows today is 100X larger than the number of new highs, and the market is going up? Please, this is only a golden opportunity to short this with everything one has, unless, as is usually the case, it gaps lower at the open tomorrow. 1962 new lows means that almost 1/3 of the entire US stock market made a new low today. Perhaps those "vague assurances" from Bernanke's lips were for unlimited funds for failed banks and just about any other company in these once-great, but now completely fictionalized United States.

Dow 10,808.71, +153.41 (1.44%)
NASDAQ 2,404.82, +68.99 (2.95%)
S&P 500 1,123.95, +24.72 (2.25%)
NYSE Composite 6,722.98, +148.69 (2.26%)
NASDAQ Volume 3,122,499,000
NYSE Volume 7,875,459,500
Combined NYSE & NASDAQ Advance - Decline: 4252-2410
Combined NYSE & NASDAQ New highs - New lows: 18--1962 (full panic mode)
WTI crude oil: 75.67, -1.94
Gold: 1624.20, -36.70
Silver: 30.23, -0.26

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