Comments on: DEEP THOUGHTS FROM RICHARD RUSSELL

By: Nick

Nick — Sun, 09 Aug 2009 16:12:04 +0000

That 33 point spurt of Dow in the last minute of trading seems to be a regular occurrence nowadays. I’ve seen something like that quite a few times over the last few months.

There are various possible explanations for it. But one possible explanations is market manipulation.

When central banks intervene in currency markets for example in order to increase the value of some currency. Then they usually do it just before the market closes. Because that way they can influence the closing price a lot for a relatively low cost to themselves.

This is just a suspicion of mine. But it’s possible that the Fed has secretly conspired with some big investment bank to intervene in US stock markets and drive up the indexes in order to inspire optimism about the economy and get everyone back to borrowing and spending again.

The Fed gave the investment bank the money to play the market with. And this bank has its High Frequency Computer Trading program that can manipulate the market.

And if this is true. Then this would explain the huge trading profits Goldman Sachs had in Q2 2009. If Goldman Sachs knew for sure in which direction the stock market will go. Then making lots of money for them was a no-brainer.

By: Dean

Dean — Fri, 07 Aug 2009 21:26:34 +0000

I don’t know if you can see this in the BIG PICTURE chart, but it seems we just touched the channel and unless broken, then next move will probably be a retracement:

http://stockcharts.com/def/servlet/Favorites.CServlet?obj=ID3186525&cmd=shows159179509&disp=P

By: Jeff

Jeff — Fri, 07 Aug 2009 20:57:57 +0000

Good luck Eric – with the collapse at the close it looks like you may have put in at the right time. The fib retracement may be the key – if the rally today couldn’t push it over the hump maybe now is the turn around.

By: Eric

Eric — Fri, 07 Aug 2009 20:09:46 +0000

Market folded up like a lawn chair in the final 30 minutes and could not close above the magical 1014. I would not be surprised if a top has been put in on this past charge up since early july. It was nice to see some of the junk roll over at the end of the day that people have been getting squeezed on ala bac, f. Next week should be interesting.

By: James

James — Fri, 07 Aug 2009 17:43:52 +0000

Also, I hope people realize that the unemployment rate DECREASED from 9.5% to 9.4% with an addition of around 247,000 unemployed people….Talk about bad math. That is like me supposedly giving you 20 dollars, and you already had 10 dollars, and now you only have 9 dollars instead of 30…

By: James

James — Fri, 07 Aug 2009 17:40:09 +0000

This market is fake, obviously. But as long as the government can pump up prices and equity to make it look like companies are stronger than they really are and bank balance sheets are ‘clean’ because they don’t have to recognize anything ‘dirty’, then what chance does the market have in being truthful? The interesting thing will be, is how long can a lie be sustained by our government and the banks that now funnel money for them either buying up equities or treasuries?

By: Frederick

Frederick — Fri, 07 Aug 2009 16:59:23 +0000

TPC: We do have the Fed next week, though. I’m sure they’ll be no actual policy change, but something could happen there, no?

By: TPC

TPC — Fri, 07 Aug 2009 16:42:01 +0000

Good luck Eric. I don’t have the cojones to join you on that trade, but it feels like the smart contrarian move. Next week will be very very interesting. No news tends to be bad news for bulls, but we’ll see.

By: Eric

Eric — Fri, 07 Aug 2009 16:29:07 +0000

Went all in on the short side…took some balls wish me luck. Short SPY, COF, AXP, XLF, BAC, F

By: Frederick

Frederick — Fri, 07 Aug 2009 15:00:39 +0000

The bounce off the lows in the Transports is now 75%.