Wall Street Pulls Off Stunning, Late Comeback
August 16th, 2007The article calls “bargain hunters” on this rally. HA Yeah, bargain hunters all got together and waited until the last hour to act together… Sure.
Computers can print credit really fast, which allows the plunge protection team firms to simply buy index futures, which causes the tide to raise all ships. Or, this is a brutal short squeeze, which would look pretty much the same.
I don’t know how many of their nine lives investors have used up, but they seem to be running low.
Via: Yahoo:
Wall Street pulled off a dramatic late-session turnaround to close mixed Thursday after bargain hunters lured by weeks of massive declines came back to the stock market. The Dow Jones industrials, down more than 340 points in afternoon trading, ended the day with a loss of just 15.
The market appeared to be on an almost relentless downward spiral after problems at Countrywide Financial Corp. confirmed investors’ fears that credit problems are spreading. Moreover, for much of the day, investors shrugged off the Federal Reserve’s injection of $17 billion into the banking system, and appeared to be angling for a rate cut instead.
The market clawed back with a bounce in blue chip stocks, with a leadership role going to the downtrodden financial sector.
Yes, the PPT “invested” in stocks today. I guess they’ve never heard the joke. “I’ve got a tip for you – “buy low – sell high.” Fools.
Having watched the battle for most of the day (since about 11AM till closing) on Yahoo– it helps to work in stocks– I am absolutely convinced the former was true. From noontime on, we were convinced the day would hit at -300. (I was looking for -500 to celebrate with a picnic). Yahoo shows the percentage falling, as well as the drop from the previous day– streaming.
So I was a little shocked, once it hit the 300 mark, to suddenly bounce. Yet each drop came with concerted force and each comeback appeared almost deliberate. The hacks at the Yahoo site didn’t know what to put up– every time they wrote a headline for the piece on the drop (since they were convinced it would follow some sort of trend) the index went up again, almost as if it was dogging the headlines. When the headline didn’t change at 3:30 or so, stocks somehow rallied a total of 400 points– and then proceeded to what increasingly seemed like a natural drop. It’s not too hard to see if you look at the charts– it’s downright disturbing to watch in real time.
John Crudele’s reporting was right on the money in this case. At least something in the New York Post made it worth my inflated clad-metal quarter.
8/1 and 8/8 had the same kind of “incredible end-of-day, who’da thunk it?!” rallies. All the money Big Oil and Big Heroin’s made in the last 5 years sure comes in handy when you want to keep the market from tanking.
Here’s a link to a hilarious article, a hedge-fund guy’s confessions:
http://www.bloomberg.com/apps/news?pid=20601039&refer=columnist_gilbert&sid=aO_Nh8kt4JgQ
One article I read argued that evidence of intervention on the part of the PPT was that these mysterious rallies always begin at 3:30–that you can almost set your watch by them.
The chats at the MSM websites are full of people who are professedly drooling at the mouth in their eagerness to “buy aggressively” because of all the bargains generated by people dumping.
I tend to think these people are trolls, but maybe there are people out there who are really that stupid.