CLEARLY PLUNGE PROTECTION WAS IN THE MARKET THIS MORNING AFTER THE ASIAN SELL OFF...
THE NOTION IS TO KEEP THE LIQUIDATION "ORDERLY."
BUT OF COURSE THAT MEANS THE "CAPITULATION" SELLING CAN'T OCCUR...
SO THERE IS A CONFLICT BETWEEN THOSE WHO WANT CAPITULATION TO HAPPEN...AND THE FED AND WASHINGTON WHO HAVE AN INTEREST IN KEEPING MARKETS ORDERLY...
INDEED IT IS THIS URGE TO "MANAGE MARKETS" FROM GREENSPAN ON DOWN THAT HAS CAUSED THE CURRENT CRISIS IN THE FIRST PLACE...
WITH PLUNGE PROTECTION THE BOTTOM ON THE DOW COULD BE IN THE 5000 AREA...AT THIS RATE...
WITHOUT PLUNGE PROTECION THE DOW MIGHT STABILIZE AT 6000...
SO MANAGED MARKETS COME WITH A COST...!
SEPERATELY THE DECLINE IN GOLD CONTINUES BUT THE RATE OF DECEND IS SLOWING WHICH COULD MEAN THAT A LOT OF PEOPLE ARE NOW BETTING ON GOLD INSTEAD OF THE US DOLLAR AS THE REAL STORE OF VALUE...
PRINT BEN, PRINT MAY BE REACHING IT'S LIMITS OF USEFULNESS...!
HOW THIS MARKET FINISHES IS ANYONE GUESS...WITH STRONG PLUNGE PROTECTION THE US TREASURY COULD JUST HOLD THE 300 POINT LOSS UNTIL THE END OF THE DAY... ESSENTIALLY BUYING ALL COMERS...
THAT IS WHAT PASSES FOR "SUCCESS" IN WASHINGTON THESE DAZE...THE ABILITY TO CONTROL THE CRASH... NOT CURE IT!!
THE DOW COULD TREAD WATER UNTIL LUNCH...
OF COURSE THE 3PM HOUR WILL BE THE REAL KEY... TO SOAR AFTER 3PM... SELLERS WOULD HAVE TO GO HOME ...AND PLUNGE PROTECTION JUST KEEP BUYING...FOR A PLUS 500 UP DOW CLOSE...
THAT WOULD BE ABOUT THE SICKEST THING THAT COULD HAPPEN... OF COURSE IT WOULD BE "HEADLINED" AS BARGAIN HUNTING...!
SINCE "SICKNESS" IS AT THE CORE OF THIS MARKET...ANYTHING COULD HAPPEN...AND PROBABLY WILL.
THE BOTTOM IS A LONG LONG WAY OFF NOW... STAY TUNED.
