The Fed blinks; PPT's perfect timing

After yesterday's 300-point moon shot into the close, today's 50 basis point decrease of the discount rate propelled stocks another 200 points higher on the Dow. That's 500 points in just about an hour! Nice going.

Unfortunately, it's mostly forth, but one must understand the machinations of the manipulative class. The PPT (Plunge Protection Team) bought up shares yesterday at just the right time, didn't they? Even better, there was a load of activity on some option calls which expired today on companies such as ExxonMobil (XOM), Lehman Brothers (LEH), Citigroup (C), American International (AIG), Merrill Lynch (MER), Bear Stearns (BSC) and Countrywide (CFC). The real players in this market sold stocks this morning and cashed out options for fat one-day profits.

Goody for them. However, the rest of the poor suckers out there aren't privy to the same inside info, and will probably suffer losses later on, as the credit fiasco spreads.

The little bonus from the Fed this morning came after Japan's Nikkei lost 874 points overnight (5.42%) and European markets were still struggling. It's a temporary measure, a stop gap. Stocks will get hit further next week.

Dow 13,079.08 +233.30; NASDAQ 2,505.03 +53.96; S&P 500 1,445.94 +34.67; NYSE Composite 9,314.99 +227.89

Hypnotized investors bought up shares like the sheep they are,

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being led unwittingly to slaughter. American investors have to be the least sophisticated moneyed bunch on the planet. They have been played like so many banjos.

Advancing issues outdid decliners by a 4-1 margin, but we're not out of the woods yet. There were still 296 new lows to 123 new highs.

Oil was up another 98 cents to $71.98. Gold and silver also got a boost. Gold was higher by $8.80; silver added 31 cents.

It was such a great show.