Share on Google Plus Share on Twitter Share on Facebook Share on LinkedIn Share on PInterest Share on Fark! Share on Reddit Share on StumbleUpon Tell A Friend 6 (6 Shares)  
Printer Friendly Page Save As Favorite View Favorites View Article Stats   5 comments

OpEdNews Op Eds

Was the Market Pushed?

By (about the author)     Permalink       (Page 1 of 3 pages)
Related Topic(s): ; ; ; ; , Add Tags Add to My Group(s)

View Ratings | Rate It

opednews.com Headlined to H1 5/9/10

The Wall Street Journal headline on the day after we almost lost the U.S. stock market reported that the wise men on the Street were "baffled" by the big drop Thursday. The Financial Times called the event "Shambolic" as if only a shaman can decode it.

A week after CNBC assured its high-net-worth viewers that Greece would no longer be a problem, there was an uprising there followed by a volcanic market cliff dive that the White House, NASDAQ and every regulator is now investigating.

There is still a lot of head-scratching, as if to say, how come our casino went batty? It all happened in a couple of minutes, about the time it took for that fail-safe, top-of-the-line, ultra-secure, and unsinkable oil platform to sink.

The whole world of finance couldn't believe what was happening before its eyes and so quickly.

--2:38 PM: Dow down 360. --2:48 PM: Dow down 600. --2:51 PM: Dow down 900.

Help! We still don't know how the plunge was arrested. I am sure the Treasury Department's Plunge Protection Team and the Fed and every Central Bank in the world hit their red buttons to pump more money in before the balloon popped.


You are not going to believe it but no one really knows what happened yet. Should we blame a trader who made a typo or were there others playing a shadier and covert game of market manipulation which may soon officially be listed as a psychiatric condition?

Floyd Norris in the New York Times just about suggested the market was an insane asylum. Just read his lead paragraph and realize we are being dominated by financial maniacs with rationality is out the window.

"Combine: One part nervous traders; one part Greek crisis; and one part trader error. Stir in one part central bank complacency. Bring to boil. Panic."

"That combination," Norris explained, "produced one of the wildest days ever in financial markets."

On display were the usual twin towers of market self-abuse: Greed and Fear.

Angela Merkel, Germany's chancellor, likened the wider crisis to "a battle of the politicians against the markets" and attacked the role played by credit-rating agencies.

She declared: "The speculators are our adversaries" suggesting there is a financial war underway that no one in the media seemed to get. Financial analyst Max Keyser sees an outbreak of "financial terrorism."

The Web site, Gaming the Market, all but argues that this market drop was a calculated maneuver which may be why it's being investigated. I am not financially savvy enough to understand all of the evidence but for those of you are, here's part of what they say, including the idea of a "holy crap" moment, writing:

"These moves typically occur after 2:30pm Eastern while the market is near a new low or breaking point, with a relatively high VIX [which gauges "volatility"]. Another characteristic is a large NYSE Adv/Decl negative ratio. One that is negative 10:1 going into lunchtime typically assures a weak close. Ratios of 3:1 negative aren't what you want. They are easier to manipulate by weak bulls.

"You want a big scary ratio. It is these negative internals that can clue you into the probability of a PPT push. A big push on a big negative internal is the tell. To instantaneously swing the market around on these days takes a massive amount of concerted capital.

Next Page  1  |  2  |  3

 

News Dissector Danny Schechter is blogger in chief at Mediachannel.Org He is the author of PLUNDER: Investigating Our Economic Calamity (Cosimo Books) available at Amazon.com. See Newsdisssector.org/store.htm.

Share on Google Plus Submit to Twitter Add this Page to Facebook! Share on LinkedIn Pin It! Add this Page to Fark! Submit to Reddit Submit to Stumble Upon

The views expressed in this article are the sole responsibility of the author and do not necessarily reflect those of this website or its editors.

Writers Guidelines

Contact Author Contact Editor View Authors' Articles

Most Popular Articles by this Author:     (View All Most Popular Articles by this Author)

Is There A Threat of Fascism in the USA?

Free Marketers Going After Occupy Wall Street --Danny Schechter

COG OR COA: WHY IS OBAMA MORPHING INTO BUSH 2?

WERE THE BANKS TOO BIG TO FAIL OR THE BANKERS TOO BIG TO JAIL?

WHO OWNS OUR MEDIA AND WHY IT MATTERS

HARD TIMES ARE GETTING HARDER. ARE THEY EVER!

Comments

The time limit for entering new comments on this article has expired.

This limit can be removed. Our paid membership program is designed to give you many benefits, such as removing this time limit. To learn more, please click here.

Comments: Expand   Shrink   Hide  
5 people are discussing this page, with 5 comments
To view all comments:
Expand Comments
(Or you can set your preferences to show all comments, always)

Mr. Schechter, the Dissector, is a great investiga... by JohnPeebles on Monday, May 10, 2010 at 1:05:14 AM
Monsanto: Profiting Without ConscienceBy GTM on Ja... by MARGARET BASET on Monday, May 10, 2010 at 3:50:44 AM
There are a lot of candidates, or more properly su... by John Sanchez Jr. on Monday, May 10, 2010 at 7:55:26 AM
Freaking Jump! It ain't Mom and Pop Poor Middlecla... by boomerang on Monday, May 10, 2010 at 11:06:48 AM
let's see, the guys who are supposed to know don't... by Kathy Stuart on Monday, May 10, 2010 at 7:35:15 PM

 

Tell a Friend: Tell A Friend


Copyright © 2002-2014, OpEdNews

Powered by Populum