Monday, July 17, 2006

CAN PLUNGE PROTECTION HANDLE THIS MESS?

The market masters and the FED shills are good at "managing the markets," but can they handle THIS!

While declines have been modest so far...and the float has been fairly controllable...that may not always be the case.

Remember, the market masters are only going to "make markets"....IF THEY THINK THERE IS MONEY TO BE MADE...

THE MARKET MASTERS ARE NOT GOING TO STAND IN FRONT OF AN OUT OF CONTROL TRAIN...BECAUSE THAT SIMPLY IS NOT IN THEIR "JOB DESCRIPTION."

As long as the markets only move...say 100 to 150 points per day...the float will be handled...

If the float rises too high...the market masters will have no choice but to stand aside, and let the market fall to whatever the market thinks is the new equilibrium...

Perhaps volume should be watched carefully in the next days...big down days on very large volume could be a sign that the "dam is breaking"...and not that a "selling climax" is occuring.

Unfortuately, there will be no way to tell a selling climax from a major global paradigm shift...as it occurs. Only later will be know "What Happen?"

A one day 1000 point drop in the DOW is possible under these extreme conditions.

So far, Wall Street has done a great job of "not scaring" the investing public...perhaps that will continue.

But if the middle east devolves into Regional or World Wide conflict and oil soars wildly...the Dow could be cut by a third...in a very short time.